Chairman Harkin Introduces Education Jobs Bill

Today, Senate Appropriations Labor, Health and Human Services and Education Subcommittee Chairman Tom Harkin (D-IA) introduced “Keep Our Educators Working Act,” which would provide $23 billion to states to support k-12 and post-secondary education positions. The program would be distributed similarly to the State Fiscal Stabilization Fund that was established in the American Recovery and Reinvestment Act.

Also, Chairman Harkin held a hearing to discuss the administration’s education budget and the Education Jobs bill with Secretary of Education Arne Duncan testifying. Another panel of witnesses, including Mark Herzog, Chancellor of the Connecticut Community Colleges, testified before the subcommittee. All of the witnesses voiced their strong support for the education jobs bill. With the downturn in the economy and impending budget cliffs, these funds would stave off huge budget deficits and layoffs. ACCT sent a letter of support of Chairman Harkin’s bill.

The bill’s funding level mirrors the House-passed “Jobs for Main Street Act,” which was passed in December of last year. Last month, House Education and Labor Chairman George Miller (D-CA) introduced H.R. 4812, which includes funding for states and an additional $75 billion over two years for local government to retain workers, including school employees.

The hearing can be found at: http://appropriations.senate.gov/webcasts.cfm?method=webcasts.view&id=089d3b21-5bc6-4f18-89bf-b3fccb2b981b

ACCT’s letter of support can be found at: http://www.acct.org/advocacy/letters/

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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!

House Committee Passes Student Aid and Fiscal Responsibility Act of 2009

Today, the House Education and Labor Committee led by Chairman George Miller (D-CA) passed H.R. 3221, the “Student Aid and Fiscal Responsibility Act of 2009,” by a 30-17 vote. The bill eliminates the Federal Family Education Loan Program and originates all new federal student loans through the Direct Loan Program starting in 2010. In total, this conversion generates $87 billion in savings. While there were a number of amendments offered and debated, the intent of the bill and the funding levels for Pell Grants, community college modernization and President Obama’s American Graduation Initiative (no significant changes to the community college programs) were left unchanged.

The bill provides significant funding increases in two key areas:

• Investing $40 billion to increase the annual Pell Grant maximum to $5,550 in 2010 and to $6,900 by 2019. Starting in 2010, the maximum will be linked to match rising costs-of-living by indexing it to the Consumer Price Index plus 1 percent; and
• Providing $9.5 billion for President Obama’s American Graduation Initiative, with $2.5 billion in FY2011 for community college infrastructure and $7 billion (over ten years) for competitive grants to community colleges and states. The funding is broken down to three distinct programs:

1. 2.5 billion in FY2011 for grants to community colleges to modernize,
   renovate, and repair their facilities.
2. $6.3 billion over ten years for community college and state competitive
   grants. The first four years are geared towards community colleges and
   states. The remaining six years are targeted towards states. Prior
   to the markup, ACCT worked to include language within the state grant program
   stipulating that no less than 90% of funds to states be allocated to community
   colleges.
3. $700 million for competitive grants for national activities, including
   grants to develop free online training and courses.

Additionally, the funds other programs including:

• Providing $3 billion to bolster college access and completion support programs for students;
• Strengthening the Perkins Loan Program;
• Keeping interest rates low on need-based – or subsidized – federal student loans by making the interest rates on these loans variable beginning in 2012. These interest rates are currently set to jump from 3.4 percent to 6.8 percent in 2012;
• Simplifying the FAFSA form;
• Providing $2.5 billion for Historically Black Colleges and Universities and Minority-Serving Institutions;
• Providing $8 billion for Early Learning Programs; and
• Providing $10 billion to pay down the federal deficit.

With the Committee process complete, the bill has been referred to the House Budget Committee. There is some discussion about bringing the bill to the floor next week. Meanwhile, the Senate is expected to consider its budget reconciliation bill in early September.

To see the letter of support for H.R. 3221 by ACCT and AACC, visit: http://www.acct.org/Final%20HR3221Support%20Letter.pdf

For more information visit: http://edlabor.house.gov/newsroom/2009/07/legislation-to-make-landmark-i.shtml

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Student Aid and Fiscal Responsibility Act of 2009

Yesterday, Chairman George Miller (D-CA) introduced H.R. 3221, “Student Aid and Fiscal Responsibility Act of 2009.” The eliminates the Federal Family Education Loan program and originates all new federal student loans through the Direct Loan program starting in 2010. In total, this conversion generates $87 billion in savings.

In turn, the bill provides significant funding increases for a number of programs, including:

• Investing $40 billion to increase the annual Pell Grant maximum to $5,550 in 2010 and to $6,900 by 2019. Starting in 2010, the maximum will be linked to match rising costs-of-living by indexing it to the Consumer Price Index plus 1 percent;
• Providing $9.5 billion for community colleges, with $2.5 billion in FY2011 for community college infrastructure and $7 billion (over ten years) for competitive grants to community colleges and states;
• Providing $3 billion to bolster college access and completion support programs for students;
• Strengthening the Perkins Loan program;
• Keeping interest rates low on need-based – or subsidized – federal student loans by making the interest rates on these loans variable beginning in 2012. These interest rates are currently set to jump from 3.4 percent to 6.8 percent in 2012;
• Simplifying the FAFSA form;
• Providing $1.2 billion for Historically Black Colleges and Universities and Minority-Serving Institutions;
• Providing $10 billion for Early Learning programs; and
• Providing $10 billion to pay down the federal deficit.

Most importantly for community colleges, the initiative is broken down to three distinct programs:

1. $2.5 billion in FY2011 for grants to community colleges to modernize, renovate, and repair their facilities.
2. $6.3 billion over ten years for the Community College Challenge Grant Program, which will provide competitive grants. The first four years are geared towards community colleges and states. The remaining six years are targeted towards states.
3. $700 million for competitive grants for national activities, including grants to develop free online training and courses.

ACCT is working with Chairman George Miller’s office to refine the legislation. The House Education and Labor Committee is expected to consider the bill next Tuesday. ACCT will provide updates as further information becomes available.

To see the full press release, visit: http://edlabor.house.gov/newsroom/2009/07/chairman-miller-introduces-leg.shtml

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House Committee Holds Hearing on Increasing Student Aid Through Loan Reform

Thursday, May 21, 2009 — Today, the House Education and Labor Committee held a hearing to examine a proposal outlined by President Obama in his FY 2010 budget request, which would increase funding for the Pell Grant program by almost $94 billion over ten years and make Pell an entitlement program (mandatory). The President’s plan would be paid for by ending the subsidies the federal government currently pays to lenders in the Federal Family Education Loan program, which is the federally guaranteed student loan program, and re-directing those savings back into Pell. In turn, the move would originate all new loans starting in the academic year 2010-2011 under the Direct Loan program.

ACCT supports the Obama Administration’s effort to make the Pell Grant program into an entitlement program (mandatory). The proposal would also allow for Pell Grant maximum increases each year based upon the Consumer Price Index (CPI) plus one percent. Another component of this proposal would be the creation of a program focused on student access and success. This new program would be funded at $500 million or $2.5 billion over five years. The key committee witness was Robert Shireman, Deputy Undersecretary at the U.S. Department of Education, who is leading the Department’s effort on Pell.

Click here for a webcast of today’s hearing.

ACCT encourages community college leaders to contact your members of Congress in support of reforming college aid to allow for stable Pell Grant program.

Contacting your legislators is easy at ACCT’s Policy Center.
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