aacc year end legislative update
DESCRIPTION
AACC conducted a webinar on December 14, 2010 which covered topics ranging from the latest status of key legislative issues for community colleges to a discussion of the expected impacts of the 2010 elections on Congress and our priorities.TRANSCRIPT
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Looking Backward and Forward: Year-End Legislative Report
AACC and CRD
December 14, 2010
•David BaimeAACC Senior VP for Government Relations & Research
•Jim HermesAACC Director of Government Relations
• Laurie QuarlesAACC Legislative Associate
• Polly BinnsCRD Executive Director
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Summary of 111th Congress
• Love it or Hate it, Output was Significant:
• Recovery and Reinvestment Act, Feb. 2009.▫ Massive investment in CCs: Stabilization $, Pell Grant
$, Billions of $ in competitive grants.• American Graduation Initiative.▫ Proposed July 2009; Led to March 2010 budget
reconciliation legislation (originally SAFRA).• Education Jobs Fund, August 2010.• Pending Tax Legislation Has Potential Great Impact.
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Community College And Career Training Program (CCCTP)
• Pending Legislative Changes to Program. ▫ H.R. 6517 just introduced by Rep. Sander Levin. Broadens scope of program to include workers who
are or are likely to become eligible for unemployment insurance.
Makes for-profit schools ineligible for program. Provides administrative funds to DOL. Extends TAA authorization through end of 2012. House action imminent; Senate in question.
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Community College And Career Training Program (CCCTP)
• Solicitation for Grant Applications (SGA) Expected at end of December or Very Early January—Mark AACC’s Words!
• 90 Days Minimum to Respond to SGA.
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Community College And Career Training Program (CCCTP)
• $500 Million per Year for Four Years Under Trade Adjustment Assistance Act.
▫ Funded by 2010 Health Care and Education Reconciliation Legislation.
• Minimum of 0.5% of funds to institution(s) in each state, but no state distribution per se.
▫ Funds not limited to serving TAA recipients but design must reflect their needs.
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Community College And Career Training Program (CCCTP)
• Individual Competitive Grants Start at about $2.5 Million over Three Years, Consortia Grants Higher.▫ Institution may be fiscal agent on only one grant per year, but
may partner in other consortia .▫ Reform and innovation emphasized—no simple program
expansion.
• Uses of Funds .▫ Curriculum development, equipment, faculty time, etc.▫ No real property; renovation of existing property may be possible.▫ Tuition charges not envisioned in early phase of grants.
• Strong Evaluation Component.
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Gainful Employment Regulations
• Proposed New Student Aid Eligibility Standards.▫ Virtually all for-profit school programs. ▫ Certificate programs at non-profits.
• Effort Driven by For-Profit Sector Abuses/Expansion▫ (3 Senate Hearings—Another to Come).
• Much at Stake for Community Colleges.
• Regulatory Framework Reflects Significant New Federal Role in Higher Education.
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Gainful Employment Regulations
• Regulations Advanced Through Two Department of Education “Notice(s) of Proposed Rulemaking” (NPRM).
• Final Regulations on October 29 included broad range of issues (credit hour, ATB, Satisfactory Academic Progress) as well as reporting framework for gainful employment. The latter is generally satisfactory.
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July 26, 2010 Gainful Employment NPRM
• Gainful Employment Sole Focus▫ Requires programs to meet standards relating to
loan repayment and debt-to-income ratio to retain full eligibility.
▫ AACC position would largely neutralize impact on community colleges.
▫ For-profit institutions will vigorously challenge rule in Congress and/or in the courts.
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Tax Issues (AOTC)
• American Opportunity Tax Credit (AOTC) Created in ARRA to replace the Hope Scholarship but Expires in 2010.
• For Community College Students, Far Preferable to Hope Scholarship:▫ Larger ($2,500) credit better geared to low-cost
institutions. 100% of first $2,000 in tuition, 25% of next $2,000
▫ Covers “course materials.” ▫ 40% refundable.
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Tax Issues (AOTC)
▫ Obama-Republican tax deal extends AOTC for 2 years—big victory aided by continuation of “spend now, pay later” policies.
▫ Replay of intense current debate can be expected in 2012.
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Tax Issues—Section 127
• Section 127 Provides up to $5,250 of Tax-Free Educational Assistance to Incumbent Workers.▫ Huge benefit to individuals attending community
colleges.▫ Provisions expire in 2010 absent extension.
• Obama-Republican Tax Deal Extends for 2 Years; Big CC Victory.
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FY 2011 Labor-HHS-Education Appropriations
• No FY 2011 Congressional Budget.• No Final FY 2011 Appropriations bills.• Two Continuing Resolutions (CR) to date.• House approved Full-Year CR on December 8.• Senate Democrats working on FY 2011 Omnibus
Spending Measure.• Republicans favor short-term CR through February.
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FY 2011 Labor-HHS-Education Appropriations—House
• House Full-Year CR, H. 3082, includes $5.7 billion to address the Pell Grant shortfall.
• Caps discretionary spending at FY 2010 level.• Most programs funded at FY 2010 levels with
exceptions.• Career Pathways Innovation Fund (formerly
CBJTG) eliminated.• No FY 2011 earmarks.
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FY 2011 Labor-HHS-Education Appropriations—Senate
• Senate Democratic FY 2011 Omnibus bill:▫ Caps discretionary spending $22 billion above
House & above FY 2010.▫ Includes earmarks.▫ Status of Pell shortfall uncertain.▫ May include modest increases for Title III-A,
HSIs, International Ed, & DOL Job Training Programs (not CPIF).
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Education Jobs Legislation
• $26 Billion in Aid Enacted in August.
• Provided $10 Billion for the Education Jobs Fund, Limited to K-12.
• Provided $16.1 Billion for Federal Medicaid assistance to States.
• Important Maintenance of Effort (MOE) Language.
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DREAM Act
• Push for Senate Vote Fell Short in Late September.▫ Enmeshed in “Don’t Ask, Don’t Tell.”
• Election Promises Made for Another Vote.• House Passed Act 216-198 on December 8• Senate Vote Likely to Fall Short of 60 Needed.▫ Republican support needed, may not be forthcoming.▫ Affected by tax cuts and spending debates.▫ Never say never!
• Outlook Grim for Passage in 112th Congress.
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October 5 White House Summit on Community Colleges
• President Obama spoke at opening session but Dr. Jill Biden was the sparkplug. Over 100 attendees.
• Breakout Sessions:▫ Completion▫ Financial Aid ▫ Innovation▫ Online Learning▫ Military Families▫ Pathways to the Baccalaureate
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Next Steps on White House Community College Summit
• Administration Announced a Virtual Community College Summit to Take Place in 2011.
• “Mini-Summits” Possible in Early 2011, to Precede Virtual.
• AACC Working with the Obama Administration on Emerging plans.
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1st Session of 112th Congress—Some Policy Issues
• Budget Deficit Will Dominate Debate.• Tax Issues Kicked Down the Road to 2012.• WIA Reauthorization Seems Possible.• Pell Grant Program is Challenged.• For-Profit Issues Will Continue.• Obama to Retain Focus on Community Colleges.• “No Child Left Behind” (ESEA Reauthorization);
Higher Education May be De-Emphasized.
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1st Session of 112th Congress—Politics
• Political Dynamics are Difficult to Predict.▫ Most expect widespread gridlock.
• New House Majority Will Exert Strong Control.▫ 242 – 193; 63 new House Republicans.
• Most New House Committee Chairmen are Known and Supportive of CCs—Kline, Guthrie, Camp.
• Appropriations, Budget, and Education and Labor Committees Will Look Significantly Different.
• CC Caucuses at Crossroads.
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Budget Policy in the 112th
Congress
• Deficits Will Drive Debate.• House Republicans Committed to Returning
Domestic Discretionary Spending to FY 2008 Levels.
• Earmarks in Question.• Deals Necessary to Avoid Dysfunction.• Ability of Legislature to Reduce Deficit/Debt
Must be Questioned—e.g., Obama Commission.
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Community College Funding Priorities
• In 2011, Status Quo May Look Very Good.• Pell Grant Program is Paramount— 3 Million CC
Students Rely on Pell Grants Annually; Historically Has Drawn Bi-Partisan Support.
• Carl D. Perkins Career and Technical Education Act Could be Vulnerable.
• CCCTP Needs Vigilance.
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Educating the New Congress
• Acting Now is Critical—Make Your Mark!• Importance of Critical Federal Programs Should
be Outlined; Limit the List.• CRD Federal Programs Guide.• Underscore Your Role as Sounding Board on
Policy Issues.• AACC Has Developed Resources.
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Important Dates in 2011
• Workforce Development Institute: January 26-29
• Groundhog Day: February 2nd
• National Legislative Summit: February 13-16
• AACC Convention: April 9-12
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Contact Information
• David Baime▫ 202-728-0200 x224, [email protected]
• Jim Hermes▫ 202-728-0200 x216, [email protected]
• Laurie Quarles▫ 202-728-0200 x249, [email protected]