Showing posts with label Pell Grant. Show all posts
Showing posts with label Pell Grant. Show all posts

Wednesday, February 15, 2012

2012 National Legislative Summit Examines Election-Year Priorities

One day after President Barack Obama unveiled his proposed budget for the upcoming fiscal year at Northern Virginia Community College, trustees and presidents convened in Washington, D.C., for the 2012 Community College National Legislative Summit fully aware of the election-year challenges ahead of them.

"We know we have a presidential election in November, which increases the hyperpolitical nature of what's going on in D.C.," said ACCT Director of Public Policy Jee Hang Lee.

Obama's proposed budget and earlier initiatives include unprecedented funding for community colleges, including $5 billion for modernizing community college infrastructure and an $8 billion Community College to Career fund that builds on the existing $2 billion Community College and Career Training Grant Program. With the odds of passage uncertain, NLS speakers urged community college leaders to not lose sight of programs already in place. For example, the CCCTG program has already survived several "minor but real" threats and is likely to face them again, cautioned Jim Hermes, AACC director of government relations.

Nowhere is preserving existing programs more critical than the $40 billion Pell Grant program, which serves 9.7 million students. Facing a $1.3 billion program shortfall, lawmakers recently made several significant eligibility changes, including the elimination of benefits for "ability to benefit" students who lack a high school diploma or GED, said ACCT Senior Public Policy Associate Jennifer Stiddard. "A lot of these changes disproportionately impact community colleges and working students," Stiddard said. "It's important that Pell be kept whole."

Looking ahead, the Pell Grant program will face an $8 billion shortfall in FY 2014, which is also the first year that it will be eligible for the across-the-board cuts required by the the Budget Control Act's sequestration provision.

Given the challenging budget climate, ACCT and AACC leaders urged community college leaders to continue stressing the impact of their institutions. "In budget parlance, there's a difference between consumption and investment," said David Baime, AACC senior vice president for government relations. "Education is an investment."

Earlier in the day, former U.S. Senator Robert Bennett (R-Utah) urged NLS attendees to "tell the story of the enormously significant financial bargain that community colleges are."

"Community colleges are an undiscovered jewel in terms of the impact they can make in the lives of young people," he said.

Former U.S. Senator Pete Domenici (R-N.M.) was even more succinct in his advice: "You have a terrific approach, with autonomy on the local level and serving the public in need," he said. "Don't let the politicians mess things up."

The 2012 Community College National Legislative Summit continues today with opening speaker Roberto J. Rodriguez, special assistant to the President for education, White House Domestic Policy Council, a Congressional Forum with a roster of Congressional speakers, and the 2012 Capital Awards Banquet, at which U.S. Senator Tom Harkin (D-Iowa) will be awarded the 2012 National Education Service Award for his dedication to community and technical colleges.

For the full program, click here.
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Monday, February 14, 2011

Focus on Budget Proposals, Pell Grants as 2011 National Legislative Summit Kicks Off

The 2011 Community College National Legislative Summit kicked off the same morning that President Barack Obama unveiled his proposed budget for the upcoming fiscal year, an irony not lost on speakers, who cautioned a near-record turnout of community college leaders convening in Washington that the legislative focus has changed.

““It’s all about the budget,” former education policymaker and consultant Vic Klatt of the Penn Hill Group told NLS attendees during a Monday afternoon session. “Everybody is claiming to be reducing spending—the president, Congress, everyone.”

With lawmakers focusing exclusively on the 16 percent of the federal budget that excludes entitlements and military spending, making the case for community college programs playing critical roles in revitalizing local economies will be challenging, speakers cautioned. “My sense is that it’s going to be very difficult in this climate to have a thorough and logical discussion that starts with the needs of the people in your communities,” Meet the Press moderator David Gregory of NBC told attendees during a Monday general session. “It’s not just a debate about numbers and policy. It’s a debate about leadership in Washington.”

For now, the battle over the FY12 budget is taking a back seat to coming to an agreement over funding for the current fiscal year, with House Republicans proposing significant cuts to a range of programs as the potential of a government shutdown looms as soon as next month. “You couldn’t be here at a better time,” ACCT President & CEO J. Noah Brown told attendees. “What you do over the next few days will have a profound impact on securing scarce resources for your community.”

In outlining the 2011 Community College Federal Legislative Priorities (Word document), officials from ACCT and the American Association of Community Colleges cited potential reductions to the Pell Grant program and the possible use of funds intended for the $2 billion Community College and Career Training Grant Program (CCCTG) to offset existing Trade Adjustment Assistance (TAA) programs as two of the most significant legislative issues facing community colleges.

With the number of Pell Grant recipients having grown by 64 percent at the same time as the maximum award grew to $5,550, overall funding for the program has doubled over the past four years, making it a highly visible target for reductions in the current climate. “Part of it has to do with the economy, part of it has to do with the fact that community colleges are becoming first responders,” ACCT Director of Public Policy Jee Hang Lee said of the increase.

The Pell program has “grown bigger than most state budgets,” added David Baime, AACC senior vice president for government relations and research. “As the economy has tanked and students have come to our doors in record numbers, the program has come under immense financial strain.”

The most recent budget proposal for the current fiscal year offered by House Republicans would reduce the Pell Grant maximum by 15 percent. President Obama’s budget proposal for FY12 would leave the maximum untouched, but place limitations on year-round grants. Further qualifications based on metrics involving college costs and completion are also possible, Robert L. Moran, director of federal relations and policy analysis for the American Association of State Colleges and Universities, said during an afternoon session. “We have dueling proposals from a Democratic president and a Republican House majority to see which one can cut Pell Grants more,” Wall Street Journal bureau chief David Wessel told attendees. “If you need any other reminder of the stakes you face, I can’t think of one.”

Other legislative priorities include grants, institutional aid, workforce development programs, funding for science, technology, engineering, and math (STEM) provided through a National Science Foundation initiative, and making the American Opportunity Tax Credit, extended for two years as part of the extension of the Bush tax cuts, permanent. Reauthorization of the Workforce Investment Act, TAA authorization, improvements to the Elementary and Secondary Education Act, reconsideration of the DREAM Act and programs to help community colleges serve veteran students round out the priorities. Making the case for these existing programs is especially important this year because no earmarks are expected for at least the next two years, AACC legislative associate Laurie Quarles told attendees. “Without your help this year, we’re going to see some pretty draconian cuts,” she said. “These programs... are where the money is -- and where it will be disappearing from if you don’t make the case for community colleges.”

Speakers urged community college leaders to focus on results in their discussions with lawmakers. “You don’t need rhetoric, you need money, and you need to convince people you’re doing something that makes sense,” said Wessel, encouraging community college leaders to emphasize the returns on investment yielded by retraining and remedial and developmental education, while not losing sight of their mission to help lift the underserved out of poverty. “If you close that door, you don’t deserve to exist,” he said to applause from the audience.

Despite the many challenges, NLS speakers remained upbeat about the future. “Our number one priority is getting people back to work, and community colleges are positioned to help us do just that,” said Penny Pritzker, chair of Skills for America’s Future, which aims to foster partnerships between businesses and community colleges by sharing best practices, identifying sources of funding, and “playing matchmaker” for prospective partners. “Putting our resources into training and development is one of the best investments we can make as a country,” she said. “It could not be clearer that community colleges are in the right place at the right time. The country has never needed you more.”

“We are entering a period of big, big challenges,” ACCT’s Brown said. “But I would submit to you we have big, big opportunities. I am confident today that we’re up to the task of meeting these big opportunities. Without you and the nation’s community colleges, this nation will not be the nation is has been up until this point in history. It’s up to you.”
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Thursday, December 9, 2010

House Passes Continuing Resolution, DREAM Act; Senate Expected to Consider Both Bills

Last night, the House approved H.R. 3082, a year-long continuing resolution to fund the government until the end of the current federal fiscal year (September 30, 2011), by a vote of 212-206. Now that the House has passed the bill, it will be presented to the Senate for consideration. In past years, continuing resolutions typically have been less robust, but this continuing resolution will provide additional funds to crucial areas. Most importantly for community colleges, the bill provides an additional $5.7 billion to deal with the Pell Grant shortfall. Meanwhile, Senate Appropriations Committee Chairman Daniel Inouye (D-HI) continues to work on an Omnibus Appropriations bill, and he will attempt to present the Omnibus bill as a substitute for the House continuing resolution. If the Senate gets the 60 votes necessary Omnibus bill cloture, the bill will be sent back for the House’s consideration. The Omnibus bill is preferable to a long-term continuing resolution, because it would include higher funding levels (and earmarks). ACCT is also hopeful that the program changes to the Community College and Career-Training Grant Program will be included in the Omnibus bill.

In other news, the House approved its version of the DREAM Act last night by a vote of 216-198. The bill will move to the Senate, but the bill approved by the House is different than the one that will be considered by the Senate. If the Senate passes its bill, the House will need to consider the Senate-passed version of the bill. The Senate is slated to vote on cloture on S. 3992, which is the latest version of the DREAM Act authored by Senate Majority Whip Richard Durbin (D-IL). S. 3992 has been amended to gather the additional support necessary to reach the 60 votes necessary for cloture. Unlike other versions of the DREAM Act, the bill does not repeal the federal ban on in-state tuition for undocumented immigrants and does not allow undocumented immigrants to receive Pell grants. However, the bill does provide a legal pathway for immigrants to pursue citizenship, provided that they meet set criteria. The text of S. 3992 can be found here.

Additionally, Senate Finance Chairman Max Baucus (D-MT) attempted to move “The Middle Class Tax Cut Act of 2010,” this past weekend, but the bill was not able to get cloture. Because of this outcome, the Administration and Senate Republican leaders later agreed on a tax extenders bill. The major provisions of the tax measure would include the income tax cuts that were passed during the previous Administration. For higher education, the bill includes a two-year extension of the American Opportunity Tax Credit. The Senate is working to finalize the whole package, but the measure may face a filibuster, which would delay consideration and final passage.

While most Congressional leaders were determined weeks ago, the House Republican Steering Committee met this week and recommended Rep. Harold Rogers (R-KY) to be the Chair of the House Appropriations Committee and Rep. John Kline (R-MN) to be the Chair of the House Education and Labor Committee. The House Republican conference supported the recommendations. Incoming House Majority Whip Eric Cantor (R-VA) released the upcoming House calendar for 2011. The schedule can be accessed here.


Don't miss your opportunity to meet with your members of Congress, Congressional Staff, and Meet the Press moderator David Gregory during the 2011 Community College National Legislative Summit this February 13-16 in Washington, D.C. Make sure to register before December 22 to secure the early registration discount. And be sure to register for the pre-Summit Advocacy Academy on February 13. This new academy is tailored to the needs of federal advocacy for community colleges. For more information and to register, click here. Read more!

Wednesday, December 1, 2010

House Passes Two-Week Stop Gap Funding Bill: DREAM Act Vote on the Horizon

Today, the House of Representatives by a vote of 239-178 passed a two-week continuing resolution to fund the government until December 18. The Senate will now consider the legislation. For the past month, Congressional leaders and the Administration have been working to resolve the FY11 appropriations bills. The current continuing resolution will have expired this Friday, December 3. The discussions are now centered on a short-term or long-term continuing resolution or an Omnibus Appropriations bill. Appropriations leaders are supporting an effort to finalize an Omnibus Appropriations bill because the funding totals will be higher and the bill will include Congressional earmarks. Either way, leaders are crafting a bill that will be funded at a substantially lower level than that of the President's budget request. Furthermore, the $5.7 billion Pell Grant shortfall continues to be an issue that will likely need to be addressed next year.

Senate Majority Leader Harry Reid (D-NV) has announced that there may be a vote to consider the DREAM Act as a stand-alone bill this week. While the bill has majority support, it still appears that the bill lacks the 60 votes necessary to proceed. ACCT is a member of the Act on the DREAM Coalition and supports the passage of the bill. In a move that complicates all Senate action, all Senate Republicans sent a letter to Majority Leader Reid stating that they would not vote for cloture on any bill until the Senate resolves the federal funding bills and the Bush-era income tax cuts are extended.

Also today, the National Commission on Fiscal Responsibility and Reform, which was tasked to address our nation's fiscal challenges, released its report, the Moment of Truth. The Commission was charged with identifying policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run. Of note, the report stated that increased funding should be focused on “high-priority investments America will need to remain competitive, such as increasing college graduation rates.”

The report can be viewed here. Read more!

Thursday, November 18, 2010

Lame Duck Congress Returns for Leadership Elections

The lame duck Congress returned to Capitol Hill this week to elect leaders for the upcoming 112th Congress. The House Republican Caucus elected Rep. Boehner (R-OH) as Speaker-designate, Rep. Eric Cantor (R-VA) as selected Majority Leader, and Rep. Kevin McCarthy (R-CA) as Majority Whip. The House Democratic Caucus elected Rep. Nancy Pelosi (D-CA) as Minority Leader, Rep. Steny Hoyer (D-MD) as Minority Whip, and Rep. James Clyburn (D-SC) as Assistant Minority Leader (a new position). The new leadership will take office in January.

Meanwhile, in the Senate, the leadership positions will remain the same. Sen. Harry Reid (D-NV) will remain as Majority Leader and will be joined by Majority Whip Sen. Richard Durbin (D-IL). Republicans elected Sen. Mitch McConnell (R-KY) as Minority Leader and Sen. Jon Kyl (R-AZ) as Minority Whip.

With Congress returning, Congressional leaders have been working to resolve the FY11 appropriations bills. The current continuing resolution expires on December 3rd, but there does not seem to be a final conclusion to the funding process. There have been discussions about a short-term or long-term continuing resolution, each of which has pros and cons. Either way, leaders are working on crafting a bill that will be funded at a substantially lower level than that of the President's budget request. Furthermore, the Pell Grant shortfall continues to be an issue that will likely need to be addressed next year.

Senate Majority Leader Harry Reid (D-NV) announced earlier this week that he will bring the DREAM Act as a stand-alone bill. While the bill has majority support, it still appears that the bill lacks the 60 votes necessary to proceed.

Don't miss your opportunity to meet with your members of Congress and their staff during the 2011 Community College National Legislative Summit this February 13-16 in Washington, D.C. And be sure to register for the pre-Summit Advocacy Academy on February 13. This new academy is tailored to the needs of federal advocacy for community colleges. For more information and to register, go to www.acct.org/events/legislativesummit/. Read more!

Wednesday, August 4, 2010

Senate Invokes Cloture on ED Jobs, Clearing Way to Passage

Today, the Senate invoked cloture on the Murray-Harkin (Senators Patty Murray (D-WA) and Tom Harkin (D-IA)) amendment to H.R. 1586, by a 61-38 vote. The amendment was inserted into the bill after H.R. 1586, the FAA reauthorization bill, failed to pass. The amendment provides $10 billion for education jobs and $16.1 billion for federal Medicaid payments. This amendment is different than the other versions, because the funding included is fully offset with rescissions. The amendment still needs to be passed, but the cloture marked a pivotal moment. The funding for education jobs is allocated solely for K-12, but states provide assurances on funding for K-12 and higher education. If the Senate passes the bill, the House will need to pass it as well. With the House of Representatives out for the summer recess period, PeSpeaker Nancy Pelosi (D-CA) just announced that the House will be called into session next week to pass the bill once the Senate completes action.

Last week, the Senate Appropriations Committee passed S. 3686, its version of the on Labor, Health and Human Services and Education FY2011 appropriations bill, by a party-line vote of 18-12. The bill provides over $170 billion in discretionary funding, and $66.4 billion is allocated for the Department of Education. The bill provides funds for a $5,550 Pell Grant maximum, but it does not contain funds to address the $5.7 billion Pell Grant shortfall. This year, the Senate will provide over $2.7 billion more than the FY2010 allocation, but this amount is still almost $1 billion less than the Administration’s request. The Committee did not fund the Career Pathways Program, noting the new Community College and Career Training Grant program. Senate leadership remarked that Congress is very unlikely to consider a final appropriations bill until after the fall elections.

The Committee released a summary of the appropriations bill, which can viewed at: http://www.appropriations.senate.gov/news.cfm?method=news.view&id=5ac52a3a-5218-48fa-aa01-9264ca755118.

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Wednesday, July 28, 2010

House Passes Slimmed-Down Supplemental Appropriations Bill

Yesterday, the House of Representatives passed the Senate’s version of the supplemental appropriations bill, HR 4899, by a vote of 308-114. The Senate bill is set at almost $60 billion, and it provides funding for the wars in Iraq and Afghanistan, disaster relief, and the Veteran’s Administration. The final bill does not include the $23 billion that was included in a previous House version (which did not pass in the Senate) for domestic activities, including $10 billion for education jobs and $4.95 billion for the Pell Grant shortfall. It is unclear whether Congressional leadership will attempt to include funding for education jobs or the Pell Grant shortfall in another bill, such as a small business bill. The supplemental appropriations bill is now headed to President Obama, who is expected to sign it.

The Senate Appropriations Subcommittee on Labor, Health and Human Services and Education Appropriations marked up its bill for FY2011 and passed the bill by a voice vote yesterday. The bill provides over $170 billion in discretionary funding, and $66.4 billion is allocated for the Department of Education. The bill provides funds for a $5,550 Pell Grant maximum, but it does not contain funds to address the $5.7 billion Pell Grant shortfall. This year, the Senate will provide over $2.7 billion more than the FY2010 allocation, but this amount is still almost $1 billion less than the Administration’s request. Further, it appears that the bill does not fund the Career Pathways Program. The Senate Appropriations Committee is expected to hold a full committee markup tomorrow, but it is very unlikely that the Senate and Congress will consider a final appropriations bill until after the fall elections.

The Subcommittee released a summary of the appropriations bill, which can viewed at: http://appropriations.senate.gov/news.cfm?method=news.view&id=b9a9897d-6d3f-4ad9-9872-ac20495afce5. Read more!

Friday, July 23, 2010

Senate Fails to Pass House's Version of Supplemental Bill

Last night, the Senate attempted to pass the House amendment to the Senate supplemental appropriations bill, HR 4899, but the cloture vote failed by a vote of 46-51. The tally fell short of the 60 votes necessary to end debate on the bill. The Senate version of the bill will now go back to the House of Representatives, which will likely adopt it. The Senate bill is set at almost $60 billion, and it does not include the $23 billion the House added for domestic activities, including $10 billion for education jobs and $4.95 billion for the Pell Grant shortfall.

The Senate Appropriations Subcommittee markup on Labor-HHS-ED Appropriations will be held on Tuesday, July 27.

GRANT NOTICE

Higher Education for Development (HED), in cooperation with the U.S. Department of State, the U.S. Agency for International Development (USAID), and the U.S. Department of Education, is issuing a request for applications for the Broader Middle East and North Africa - U.S. Community College Entrepreneurship Proposal Development Grants Program. Applications are due by October 18, 2010. Please visit the HED website for more information.

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Friday, July 16, 2010

House Subcommittee Moves Education Funding Bill

Yesterday, the House Appropriations Subcommittee on Labor, Health and Human Services and Education passed its $176.4 billion FY2011 appropriations bill by a party-line vote. The bill’s total education funding level is $1.4 billion less than the Administration’s request. The bill increases funding for the Pell Grant program by $5.7 billion, but it is unclear whether the purpose of the increase is to make up for the shortfall, increase the maximum amount for individual Pell Grants, or accommodate the increasing number of students. A number of proposed amendments were defeated, including an anti-Dream Act amendment. The bill now heads to the full committee, but it is unclear whether the committee will consider the bill or head directly to the House floor. In all likelihood, Congress will not finish these bills until after the fall elections.

A table summarizing the allocation of funds can be viewed on the House Appropriations Committee website at: http://appropriations.house.gov/images/stories/pdf/lhhse/FY2011_LHHS_Summary_Tabel-07.15.2010.pdf. The full program funding levels will only be introduced if the bill is considered by the full committee or the House.

The Senate leadership continues to discuss next steps for the supplemental appropriations bill. It appears that leadership will attempt to hold a cloture vote on the bill, which will likely fail. With the resulting action, the House will likely need to adopt the Senate’s supplemental bill. The House passed the Senate’s bill but added $10 billion for education jobs and $4.9 billion to cover the Pell Grant shortfall. Although the new funding is offset, it appears that there is sufficient opposition to the inclusion of these funds to block passage of the bill.

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Friday, July 2, 2010

House Passes Supplemental Appropriations Bill

Last night, the House of Representative passed an amendment to the supplemental appropriations bill, H.R. 4899, by a vote of 239-182, and one voting present. The amendment, which was offered by House Appropriations Chairman David Obey (D-WI), includes $10 billion for education jobs and $4.95 billion for the Pell Grant shortfall. With the passage of this new amendment, the bill will have to be sent back to the Senate for reconsideration. In total, the House added an additional $23 billion for domestics activities over the Senate passed bill. The Senate and House have adjourned for the July 4th recess. The Senate is not expected to take up the bill until later this month.

During House consideration, the White House threatened to veto the bill because $800 million in education-related rescissions were included to offset additional funding within the bill. The White House veto threat and additional Senate action raises concerns about whether the House provisions will be passed by the Senate. There is an expectation that the education rescissions will be removed during Senate consideration. The House also passed a budget resolution, but this resolution only applies to the House.

In other news, President Barack Obama called on Congress yesterday to pass comprehensive immigration reform legislation. In his speech, President Obama renewed his support for the DREAM Act. ACCT, with the Act on the DREAM Coalition, is encouraging to Congress to start the process and pass DREAM this session of Congress.
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Thursday, June 24, 2010

Congress Works to Wrap Up Tax Extenders and Appropriations Bill

This week, Congress has been working to wrap up activity on the tax extenders bill and the supplemental appropriations bill. Senate leaders have revised the extenders bill by scaling down the cost of the bill again, but it still appears that the bill lacks the necessary votes to break the filibuster. The Senate bill includes important changes to the Community College and Career Training Grant (CCCTG) program, which was funded within the reconciliation bill.

Recently, House Republican leaders announced that they would oppose any additional dollars beyond funds for war and disasters, even if the funding is offset by other funds. This adds an additional hurdle as Congressional leaders work to finalize a bill that has been pending for a number of weeks. Meanwhile, funding for education jobs is now down to $10 billion from $23 billion. The funding appears to be offset, but the offset will not come from ARRA unspent funds. The status of the Pell Grant shortfall funds is unclear, but the overall sense is that these funds may be in jeopardy due to the desire to limit funding to war and disasters.

The Congressional district work period/recess for July 4th is rapidly approaching, and there is a strong desire to finalize action on these two bills before the recess. It is unclear what actions will be made to advance these two important bills.

Today, the Senate Committee on Health, Education, Labor and Pensions held a hearing entitled “Emerging Risk? An Overview of the Federal Investment in For-Profit Education.” The committee will hold additional hearings to examine the for-profit sector due to the disproportionate share of federal financial aid and the rise in student loan default rates.

Click here to read the committee's report on the for-profit sector.

Click here to view the hearing.
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Thursday, May 27, 2010

Senate Moves Closer to Passing Supplemental Bill; House Postpones Markup

Today, the Senate voted for cloture on the supplemental appropriations bill by a vote of 69-29. This paves the way for the Senate to vote on final passage. While the Senate is finishing action, the House Appropriations Committee will not mark up its bill this week. The Committee is postponing action until after the Memorial Day recess period. Earlier this week, House Appropriations Chairman David Obey (D-WI) announced that he was going to include $23 billion for education jobs and $5.7 billion for the Pell Grant shortfall. Unfortunately, the education jobs funds do not include public higher education. The House leadership is working to gather support for the larger House version of the supplemental bill.

Congressional leaders are continuing to work on a revised “tax extenders” bill, which covers a number of tax provisions that have strong bi-partisan support and have expired or are about to expire. The latest version of the bill would cost $143 billion, of which $59 billion is offset. Moderate Democrats are pushing to reduce the cost of the overall bill or find additional offsets. House leaders have indicated that they will try to have a final vote on the “tax extenders” bill prior to the Memorial Day recess period.

For community colleges, the extenders bill contains important changes to the Community College and Career Training Grant (CCCTG) program funded by the reconciliation bill. The CCCTG program is funded at $500 million for fiscal years 2011, 2012, 2013, and 2014.

According to the summary, the provisions included in the bill would expand the program by authorizing the grants to benefit individuals who are eligible for unemployment insurance, who are likely to be eligible for unemployment insurance (according to specific criteria), or who have exhausted their unemployment insurance. Additionally, the provisions would: (1) clarify that only public and non-profit educational institutions are eligible for grants; (2) authorize the Department of Labor to spend up to five percent of program funds to administer, evaluate, and establish reporting systems for the program; and (3) give the Department of Labor more flexibility by allowing it to obligate grant funds in the year that they are appropriated as well as the subsequent fiscal year. The changes outlined for the community college grant program do not have a cost and rather only affect how the program will function. A summary of the bill can viewed at: http://waysandmeans.house.gov/media/pdf/111/America_Jobs_Summary.pdf

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Tuesday, May 25, 2010

House Announces Supplemental Appropriations Bill Outline

Today, Senate Health, Education, Labor, and Pensions Committee Chairman Senator Tom Harkin (D-IA) announced that he was not going to offer his bill, S. 3206, the Keep Our Educators Working Act of 2010, as an amendment to the Supplemental Appropriations bill because S. 3206 did not have the support of 60 senators. Chairman Harkin noted that the majority of the senators supported the bill, but without additional support the amendment would have failed. The Senate is expected to conclude its version of the bill this week.

Meanwhile, House Appropriations Chairman David Obey (D-WI) announced today that he was going to include $23 billion for education jobs within the House Supplemental Appropriations bill. Unfortunately, the House bill would only apply to K-12 education and exclude public higher education. However, Chairman Obey also announced that the House bill will contain $5.7 billion to cover the Pell Grant shortfall. While this does not account for the entire Pell Grant shortfall, it does cover most of the shortfall, which will provide flexibility for appropriators during the appropriations process. The House Appropriations Committee is expected to consider its bill later this week.

In other news, Congressional leaders are continuing to gather support for the “tax extenders” bill, which covers a number of tax provisions that have strong bi-partisan support, and which have expired or are about to expire. The overall cost of the bill, $192 billion, is causing some members to question whether this bill is necessary given the current economic climate. House leaders would like a final vote on the “tax extenders” bill prior to the Memorial Day recess period.

For community colleges, the extenders bill contains important changes to the Community College and Career Training Grant (CCCTG) program funded by the reconciliation bill. The CCCTG program is funded at $500 million for fiscal years 2011, 2012, 2013, and 2014. According to the summary, the provisions included in the bill would expand the program by authorizing the grants to benefit individuals who are eligible for unemployment insurance, who are likely to be eligible for unemployment insurance (according to specific criteria), or who have exhausted their unemployment insurance. Additionally, the provisions would: (1) clarify that only public and non-profit educational institutions are eligible for grants; (2) authorize the Department of Labor to spend up to five percent of program funds to administer, evaluate, and establish reporting systems for the program; and (3) give the Department of Labor more flexibility by allowing it to obligate grant funds in the year that they are appropriated as well as the subsequent fiscal year. The changes outlined for the community college grant program do not have a cost and rather only affects how the program will function.

The summary of the bill can viewed at: http://waysandmeans.house.gov/media/pdf/111/America_Jobs_Summary.pdf

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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!

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!

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!

Wednesday, July 29, 2009

Senate Subcommittee Passes Education Funding Bill

Yesterday, the Senate Appropriations Subcommittee on Labor, Health and Human Services and Education passed by voice vote its FY2010 Labor, Health and Human Services and Education spending bill at $163.1 billion.

The Senate Subcommittee bill is $2.4 billion more than the House bill.

The Senate Appropriations Committee is expected to consider the bill later this week, but Senate floor consideration is unlikely until September.

The Senate bill is $7.6 billion over last year’s funding level and more than what President Obama requested.

The bill maintains the maximum Pell Grant at $4,860; combined with the mandatory funding of $690 for the Pell Grant program, this equals a $5,550 maximum.

The Subcommittee has not disclosed all of the funding levels within the bill, but will release the funding numbers during the full committee’s consideration.

For more information, visit: http://appropriations.senate.gov.

In other significant news, the House will not consider H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, before they adjourn for the August Congressional recess.

The House will likely consider the bill in early September. Read more!