Tuesday, March 30, 2010

President Signs H.R. 4872; Announces Community College Summit Led By Dr. Biden


Today at Northern Virginia Community College’s (NOVA) Alexandria campus, President Barack Obama signed H.R. 4872, the Health Care and Education Reconciliation Act of 2010. H.R. 4872 represents a significant infusion of funds for higher education, including annual Pell Grant program funding increases and new competitive career-training grants, which will be available to community colleges. ACCT has created a summary of the education-related provisions within H.R. 4872. The summary can be found at: http://www.acct.org/HR4872%20Summary.pdf

ACCT issued a statement in response to the signing of H.R. 4872, which is available at: http://www.acct.org/2010_ACCT_Statement_HR_4872_03-29-2010.pdf.

Dr. Jill Biden, U.S. Second Lady and professor at NOVA introduced the President. President Obama noted during his remarks that “we need to invest…in our students. We need to invest in our community colleges. We need to invest in the future of this country. We need to meet the goal I set last year and graduate more of our students than any other nation by the year 2020.”

President Obama also said, “And because community colleges like NOVA are so essential to a competitive workforce, I’ve asked your outstanding professor, Dr. Jill Biden…to host a summit on community colleges at the White House this fall. And we’re going to bring everybody together, from educators to students, experts to business leaders. We are going to bring everybody together to share innovative ideas about how we can help students earn degrees and credentials, and to forge private sector partnerships so we can better prepare America’s workforce and America’s workers to succeed in the 21st century.” ACCT will continue to provide updates on the summit as the planning for the event progresses.

Additionally, with the signing of the bill, the White House released a fact sheet on the Community College and Career Training Grant program. According to the fact sheet, community colleges could apply for funds to do the following:

  • Work with businesses: Colleges could build partnerships with businesses and the workforce investment system to create career pathways through which workers will earn new credentials and promotions through step-by-step, worksite education programs that build essential skills. Colleges will work closely with employers to design training that is relevant to the local labor market and likely to lead to employment and careers.
  • Create education partnerships: Colleges could work with other educational institutions to expand course offerings and promote the transfer of credit among colleges.
  • Teach basic skills: Colleges could improve remedial and adult education programs, accelerating students’ progress and integrating developmental classes into academic and vocational classes.
  • Meet students’ needs: Colleges could offer their students more than just a course catalog through comprehensive, personalized services to help them plan their careers, stay in school, and graduate.
  • Develop online courses: Colleges could create open online course materials such as interactive tutors.
The fact sheet can be found at: http://www.whitehouse.gov/sites/default/files/100326-community-college-fact-sheet.pdf

President Obama’s and Dr. Biden’s remarks can be found online at: http://www.whitehouse.gov/the-press-office/remarks-president-and-dr-jill-biden-signing-health-care-and-education-reconciliatio

Full video of the event can be viewed at: http://www.c-span.org/flvPop.aspx?src=project/health/health033010_obama.flv&s=57.077&e=2252.05&live=N&pop=Y&srv=fms.c-span.org&remote=N Read more!

Friday, March 26, 2010

Congress Passes Reconciliation Bill; Heads to President's Desk for Signature

Yesterday, Congress passed H.R. 4872, the Health Care and Education Affordability Reconciliation Bill of 2010, which contains health-care legislation fixes and the Student Aid and Fiscal Responsibility Act (SAFRA). Earlier in the day, the Senate passed the bill by a 56-43 vote, after removing two provisions within the bill that were found to be in violation to the reconciliation rules. Of the two violations, the most important one was a “hold harmless” provision related to the Pell Grant program. The “hold harmless” provision was supposed to ensure that students would not see a drop in the Pell maximum if funding for Pell declined. This provision would not kick in until FY2013, when the maximum is expected to increase within the bill. Additionally, the maximum would only decrease if Appropriators significantly lowered the discretionary Pell Grant maximum base, which is $4,860. Congressional leaders are working to reinsert the “hold harmless” language in to another bill.

After Senate passage, the House quickly passed the revised reconciliation bill by a vote of 220-207. With House passage, President Obama is expected to sign the bill very soon. As of today, Congress will be out of session through the next two weeks as part of the spring district work recess, which starts on Monday.

H.R. 4872 eliminates the Federal Family Education Loan (FFEL) program and moves all federal student loans into the Direct Loan program. Colleges participating in the federal student loans program will need to move to the Direct Loan program by July 1, 2010. Through the conversion to the Direct Loan program, the bill creates $61 billion in savings, which will be utilized for a number of programs and deficit reduction. Most notably, the bill provides $13.5 billion to pay for the Pell Grant shortfall and $22.6 billion to support a Pell Grant maximum increase in an amount equal to the consumer price index since the newest projected shortfall is $19.5 billion. The infusion of funds will ensure that a large amount of the shortfall is taken care of, but Congress will still need to find the remaining amount in the appropriations process. Additionally, $2.55 billion would be allocated to fund Hispanic-Serving Institutions, Historically Black Colleges and Universities and tribal colleges.

From the community college perspective, the bill contains $2 billion for community colleges, the Community College and Career Training Grant Program ($500 million for each of four years, fiscal years 2011-2014), which was authorized in the American Recovery and Reinvestment Act. The program will support educational and career-training programs focused on dislocated workers and unemployed workers. The program will likely be a competitive program (meaning that colleges must submit an application in order to receive funding), but each state will be guaranteed .5% of the total funding, which totals $2.5 million per state. The program will be run by the Department of Labor and is located within the finance section of the bill.

In other news, Under Secretary of Education Martha Kanter and Assistant Secretary of the Employment and Training Administration Jane Oates testified yesterday before the House Appropriations Subcommittee on Labor, Health and Human Services, Education and Related Agencies. During the hearing, Kanter and Oates called for Congress to reauthorize the Workforce Investment Act.

More information including the testimony on the hearing can be found here: http://appropriations.house.gov/Subcommittees/sub_lhhse.shtml Read more!

Thursday, March 25, 2010

Senate Poised to Pass Reconciliation Bill, Needs to go Back to House for Consideration

Yesterday, during the Senate debate on H.R. 4872, the Health Care and Education Affordability Reconciliation Bill of 2010, which contains health-care legislation fixes and the Student Aid and Fiscal Responsibility Act (SAFRA), two provisions within the bill were found to be in violation to the reconciliation rules. Of the two violations, the most important one was a “hold harmless” provision related to the Pell Grant program. The “hold harmless” provision was supposed to ensure that students would not see a drop in the Pell maximum if funding for Pell declined. The two violations are being removed the bill. The Senate also defeated a number of amendments that would have changed the underlying bill. The Senate will continue considering amendments, with a goal of final passage of the bill sometime today. Since the Senate bill is now different than the House bill, when the Senate passes the bill, it will be sent back to the House for its consideration.

This past weekend, the House passed the reconciliation bill by a vote of 220-211. The House is working to schedule a vote on H.R. 4872 once the Senate completes the bill. Congressional leaders are working to finalize and pass the legislation prior to Congress adjourning for the spring district work recess, which starts on Monday. House leaders expect to pass the revised bill, which will then be sent to President Obama for his signature. President Obama supports the reconciliation bill.

H.R. 4872 eliminates the Federal Family Education Loan (FFEL) program and moves all federal student loans into the Direct Loan program. Colleges participating in the federal student loans program will need to move to the Direct Loan program by July 1, 2010. Through the conversion to the Direct Loan program, the bill creates $61 billion in savings, which will be utilized for a number of programs and deficit reduction. Most notably, the bill provides $13.5 billion to pay for the Pell Grant shortfall and $22.6 billion to support a Pell Grant maximum increase in an amount equal to the consumer price since the newest projected shortfall is $19.5 billion. The infusion of funds will ensure that a large amount of the shortfall is taken care of, but Congress will still need to find the remaining amount in the appropriations process. Additionally, $2.55 billion would be allocated to fund Hispanic-Serving Institutions, Historically Black Colleges and Universities and tribal colleges.

From the community college perspective, the bill contains $2 billion for community colleges, the Community College and Career Training Grant Program ($500 million for each of four years, fiscal years 2011-2014), which was authorized in the American Recovery and Reinvestment Act. The program will support educational and career-training programs focused on dislocated workers and unemployed workers. The program will likely be a competitive program (meaning that colleges must submit an application in order to receive funding), but each state will be guaranteed .5% of the total funding, which totals $2.5 million per state. The program will be run by the Department of Labor and is located within the finance section of the bill.

ACCT sent a letter in support of the education-related provisions within H.R. 4872. The letter can be read at: http://www.acct.org/Miller4872LetterSupport.pdf

A fact sheet from the House Committee on Education and Labor can be read at: http://edlabor.house.gov/documents/111/pdf/publications/20100318StudentAidandFiscalResponsibilityAct.pdf
Read more!

Monday, March 22, 2010

House Passes Reconciliation Bill

Yesterday, the House of Representatives passed health-care legislation, paving the way for the House to pass H.R. 4872, the Health Care and Education Affordability Reconciliation Bill of 2010, which contains health-care legislation fixes and the Student Aid and Fiscal Responsibility Act (SAFRA). The House passed the reconciliation bill by a vote of 220-211. H.R. 4872 eliminates the Federal Family Education Loan (FFEL) program and moves all federal student loans into the Direct Loan program. Colleges participating in federal student loans will need to move to the Direct Loan program by July 1, 2010.

Through the conversion to the Direct Loan program, the bill creates $61 billion in savings, which will be utilized for a number of programs and deficit reduction. Most notably, the bill provides $13.5 billion to pay for the Pell Grant shortfall and $22.6 billion to support a Pell Grant maximum increase in an amount equal to the consumer price index, totaling $5,550 in 2010 and up to $5,975 by 2017. (The CPI increase will start in 2013 and end in 2017.) The Pell Grant funding is critical, especially since the newest projected shortfall is $19.5 billion. The infusion of funds will ensure that a large amount of the shortfall is taken care of, but Congress will still need to find the remaining amount in the appropriations process. Additionally, $2.55 billion would be allocated to fund Hispanic-Serving Institutions, Historically Black Colleges and Universities and tribal colleges.

From the community college perspective, the bill contains $2 billion for community colleges, the Community College and Career Training Grant Program ($500 million for each of four years, fiscal years 2011-2014), which was authorized in the American Recovery and Reinvestment Act. The program will support educational and career-training programs focused on dislocated workers and unemployed workers. The program will likely be a competitive program, but each state will be guaranteed .5% of the total funding, which totals $2.5 million per state. The program will be run by the Department of Labor and is located within the finance section of the bill.

ACCT sent a letter in support of the education related provisions within H.R. 4872, the letter can be read at: http://www.acct.org/Miller4872LetterSupport.pdf

A fact sheet from the House Committee on Education and Labor can be read at: http://edlabor.house.gov/documents/111/pdf/publications/20100318StudentAidandFiscalResponsibilityAct.pdf

H.R. 4872 now heads to the Senate for consideration. The Senate is expected to take a considerable amount time to debate amendments and points of order to the overall bill. It still expected that the Senate will pass the bill. If there are no changes, the bill will be sent to the President for his signature. If there are changes, the House will need to reconsider and pass the modified bill. Read more!

Wednesday, March 17, 2010

Reconciliation Bill Update

Today, Congress and the Administration continue to work on gathering support for a reconciliation bill that will contain the Student Aid and Fiscal Responsibility Act (SAFRA) and health-care reform legislation. The Congressional Budget Office (CBO) is expected to release its finding on the pending legislation soon, which will provide the funding and budget outlines within the bill. This aspect is critical to gathering additional support for the bill. House leaders have indicated that they would like a vote on a final bill by the end of the weekend.

On the SAFRA front, there have been indications that the funding for the American Graduation Initiative (AGI) may not be included within the reconciliation bill. AGI funding is in jeopardy because Congress is using a new CBO score of SAFRA, resulting in $67 billion in savings ($20 billion less than the House passed SAFRA). The SAFRA savings is generated through the conversion of the Federal Family Education Loan Program into the Direct Loan Program. The score, coupled with the rise in Pell Grant-eligible students, has reduced the amount of funding available for AGI. Additionally, some Senators object to creating new bills in the reconciliation process. The SAFRA funding will be primarily focused on funding a Pell Grant maximum increase and deficit reduction.

On the Jobs bill front, the Senate passed its first installment of the Jobs Bill, a $17.6 billion jobs bill, by a vote of 68-29. The bill includes a payroll tax break for new hires, a small-business expensing provision, surface-transportation funding, and bond financing for infrastructure projects. The House passed the bill earlier; the bill will now be forwarded to President Obama for his signature. President Obama is expected to sign the bill. Congress is continuing efforts to move other pieces of Jobs legislation.

GRANT NEWS

The Department of Labor’s Employment and Training Administration announced the Community-Based Job Training Grant competition for this year. The closing date for the competition will be April 29th. Funded at $125 million, the awards will be distributed to “support workforce training for high-growth/high-demand industries through the national system of community, technical, and Tribal colleges.”

For more information: http://www.doleta.gov/grants/pdf/SGA-DFA-PY-09-07.pdf Read more!

Tuesday, March 16, 2010

Tell Congress to Fund the American Graduation Initiative

IMMEDIATE ACTION NEEDED

According to a number of sources, Congress will include SAFRA with health-care legislation in a reconciliation bill. Inside Higher Ed this morning stated that "the odds of that happening are better than not," although "it is far from certain."

ACCT urges you to contact your Members of Congress NOW and encourage them to fund the American Graduation Initiative.

Congressional leaders and the Administration continue to deliberate on a final bill, but there are major concerns that the funding the American Graduation Initiative (AGI) will be stripped in a final bill. AGI is the three-tiered program focused on providing around $10 billion for community college modernization and community college programs. AGI is vital to ensuring that community colleges are able to deal with increasing enrollments and meet the goals of increasing higher education attainment.

You still have time to tell your federal legislators how important the American Graduation Initiative is to your community, your students, and your college. But you must act NOW and CALL TODAY.

Contact information for U.S. Senators can be found at: http://www.acct.org/senators_phone_list.pdf

Contact information for members of the U.S. House of Representatives can be found at: http://www.acct.org/House%20Phone%20List%201-5.pdf

Members of Congress can also be reached through the Capitol Switchboard at 202-224-3121.

You can also write to your Senators and Representatives via the ACCT Policy Center at http://www.congressweb.com/cweb4/index.cfm?orgcode=acct.

For more information, contact Jee Hang Lee at jhlee@acct.org or (202) 775-4450.
Read more!

Thursday, March 11, 2010

Growing Concern About SAFRA Inclusion in Reconciliation; New Jobs Bill Introduced

Today, Congressional leaders and the Administration continue discussions and negotiations on health-care reform legislation. As the discussion progresses, there are growing concerns about the inclusion of the Student Aid and Fiscal Responsibility Act (SAFRA) in health-care reconciliation legislation. With a small group of Democratic Senators opposing the current form of SAFRA, the outlook for passing a health-care bill that includes SAFRA is becoming increasingly difficult. ACCT continues to advocate for SAFRA and is monitoring the situation. Community college trustees, presidents and other leaders who are currently attending the 2010 National Legislative Summit in Washington, D.C. continue to urge their members of Congress to include SAFRA in the reconciliation.

In other news, the Senate today passed H.R. 4213, The American Workers, State, and Business Relief Act of 2010. This bill largely extends several exporting or expired programs including several of interest to education, such as the deduction. The bill passed 62-13. The bill now returns to the House, which passed its original version on last December. The Senate still has to consider the House amendments to H.R. 2847. This is the "smaller" $15-17 billion jobs bill, which includes additional subsidies for school construction bonds.

Also, Education and Labor committee Chairman George Miller (D-CA) today introduced a new jobs bill, The Local Jobs for America Act. This bill includes the $23 billion for education aid that was part of the December House-passed Jobs for Mainstreet Act, and an additional $75 billion over two years to local governments to help retain workers - including school employees. More information is available at: http://georgemiller.house.gov/news/2010/03/congress_and_mayors_announce_n.html Read more!

Friday, March 5, 2010

Tell Your Senators to Support the Student Aid and Fiscal Responsibility Act (SAFRA)

With the White House calling on Congress to pass health-care reform legislation by March 18th, the timing for the Senate's consideration of H.R. 3221, the Student Aid and Fiscal Responsibility Act (SAFRA), is fast approaching. This is significant because Congress had also considered using the reconciliation process to pass SAFRA; however, the reconciliation process can only be used once per year. SAFRA has been on hold while health-care reform legislation worked its way through Congress.

We need each trustee, president, and community college leader to voice support for the bill immediately. As part of the National Legislative Summit next week, hundreds of community college leaders will descend upon Washington and urge their Members of Congress to support SAFRA. But we need your immediate assistance to ensure that Senators know how important this legislation is for community colleges.

Community colleges are now part of the national discussion and now is our time to seize the moment and ACT on behalf of our students and institutions. SAFRA contains the largest federal investment aimed at community colleges. Please act NOW to ensure continued support of your intuition.

Under SAFRA, the Federal Family Education Loan Program would be eliminated and all new federal student loans would be Direct Loans. Most importantly, SAFRA contains the American Graduation Initiative (AGI), which provides almost $10 billion for community colleges. We need you to urge your Senators to keep AGI funding at $12 billion, the level requested by President Obama. If the Senate decides to accommodate the March 18th timeframe, the Senate Health, Education, Labor and Pensions Committee will need to introduce and pass their version of SAFRA soon.

ACCT has prepared a draft letter for your use. The letter can be sent directly to your representatives through ACCT's Policy Center online at: http://www.congressweb.com/cweb4/index.cfm?orgcode=acct. Additionally, you should also make phone calls to your Senators in support of H.R. 3221. Senators may be reached utilizing the Capitol Switchboard, 202-224-3121.


ACCT's House-passed H.R. 3221 summary of community college-related items within the bill can be found at: http://www.acct.org/HR3221-Summary.pdf.

For more information, contact Jee Hang Lee at jhlee@acct.org or (202) 775-4450.
Read more!

Thursday, March 4, 2010

House Passes Senate Jobs Bill with a Slight Change

Today, the House of Representatives passed the first part of the Senate Jobs bill by a 217-201 vote. Prior to passing the bill, the House Democrats changed the effective date of a provision to provide about $2 billion to cover the cost of the bill. Since the House changed the bill, the Senate will have to consider and pass the bill again. If the Senate passes the bill, it will be sent to President Obama for his signature. Meanwhile, the Senate continues to work on passing the second part of the Senate Jobs bill. The Senate is considering amendments to the bill with the goal of final passage sometime next week.

In other news, the White House has called on Congress to pass health-care reform legislation by March 18th. At this time, it appears that Congress will utilize the budget-reconciliation process to pass portions of health-care reform. This is significant because Congress had also considered using the reconciliation process to pass H.R. 3221, the Student Aid and Fiscal Responsibility Act (SAFRA); however, the reconciliation process can only be used once per year. SAFRA has been on hold while health-care reform legislation worked its way through Congress. SAFRA would eliminate the Federal Family Education Loan Program and all new federal student loans would be Direct Loans. Most importantly, SAFRA contains the American Graduation Initiative (AGI) which provides almost $10 billion for community colleges. There is an expectation that the Senate’s version of SAFRA will likely contain less funds for AGI because the increased funds necessary to cover the rise in the number of Pell Grant recipients. If the Senate decides to move to accommodate the March 18th timeframe, the Senate Health, Education, Labor and Pensions Committee will need to introduce and pass their version of SAFRA soon.

The first part of the Senate’s Jobs bill includes:

1) Payroll Tax Exemption: offers an exemption from social security payroll taxes for every worker hired in 2010 that 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 second part of the Senate’s Jobs bill provides unemployment insurance and COBRA health benefits from February 28, 2010 – December 31, 2010. The total package costs $150 billion. Additionally, the bill extends a number of tax credits that have expired, including the qualified tuition deduction, research and development credit, increased funding for state Medicaid programs, and a number of credits aimed at small businesses. This bill does not include funding for an “Education Jobs Fund.”

To view the press release, go to: http://finance.senate.gov/press/Bpress/2010press/prb030110b.pdf Read more!

Tuesday, March 2, 2010

Senate Jobs Bill Part 2 Introduced; President Obama Visits Savannah Technical College

Yesterday, Senator Max Baucus (D-MT) and Majority Leader Harry Reid (D-NV) introduced the second phase of the Senate’s Job Agenda. The introduced bill, known as the American Workers, State and Business Relief Act, would be a substitute amendment to H.R. 4213, the Tax Extenders Act of 2009. The bill provides unemployment insurance and COBRA health benefits from February 28, 2010 – December 31, 2010. The total package costs $150 billion.

Additionally, the bill extends a number of tax credits that have expired, including the qualified tuition deduction, research and development credit, increased funding for state Medicaid programs, and a number of credits aimed at small businesses. This bill does not include funding for an “Education Jobs Fund.”

To view the press release, go to: http://finance.senate.gov/press/Bpress/2010press/prb030110b.pdf

At present, it is unclear how the Senate will proceed with this bill. The Senate is currently working to consider extending unemployment insurance for one month, but the Senate cannot finalize action because of a procedural objection. Meanwhile, the House Democratic leaders are working to gather support to pass the first part of the Senate Jobs bill. Speaker Nancy Pelosi (D-CA) is trying to gather support for the Senate Jobs bill. The House leadership expects to consider the Senate Jobs bill sometime this week.

In other news, President Barack Obama visited Savannah Technical College in Georgia today as part his “Main Street Tour.” The President spoke to students of the Savannah YouthBuild program, which puts at-risk youth through a combined GED/construction program, as part of his continuing effort to vocalize his support for community and technical college-based workforce training programs. During the visit, he announced a newly proposed program designed to provide incentives for homeowners to retrofit their homes in a more energy-efficient manner. The Home Star program, which was first outlined in the president's State of the Union address, would provide rebates to homeowners of up to $3,000 for making energy efficient improvements to their houses. Customers would be eligible for direct rebates at the point of sale, according to the White House.

"This is a commonsense approach that will help jump start job creation while making our economy stronger," the President said. "It's what's right to plan for our future." The President has also visited Lehigh Carbon Community College in Pennsylvania and Lorain County Community College in Ohio as part of the tour.

Additionally, the White House is hosting a discussion on the Student Aid and Fiscal Responsibility Act (SAFRA) with White House Domestic Policy Director Melody Barnes and Secretary of Education Arne Duncan.

For more information, go to: http://www.whitehouse.gov/blog/2010/03/02/reforming-student-loans-paving-road-opportunity Read more!