AACC Federal Legislative Update

March 21, 2012

AACC Office of Government Relations and ResearchDavid Baime, Senior Vice President

Jim Hermes, Director

Laurie Quarles, Legislative Associate

AACC Legislative Update

• Obama Budget Proposals

• FY 2013 Budget

• Workforce Legislation

• TAACCCT Grant Program

• Credit Hour /State Author ization Legislation (HR 2117)

• Depar tment of Defense MOU/Veterans Legislation

The Year Ahead—Much Talk, Less Action

• Budget Issues Will Again Dominate Agenda• Across-the-Board Sequestration is Looming• Presidential/Congressional Politics—Congress

Knows I t’s Unpopular and Wants Achievements• Fiscal Conservatives Remain Fervid• Testy “ Endgame” Seems Likely (Final FY 2013

Appropr iations, Debt Ceiling Increase, Bush Tax Cuts, Automatic Cuts)

Obama Budget

• Significant Emphasis on Higher Education and Community Colleges in State of Union

• Campaign Dr iving Proposals

• Proposals Reflected in FY 2013 Budget

• Long Odds for Full Enactment

Community College to Career Fund

• $8 Billion Over Three Years• Four Major Components

– Grants to community college par tnerships with businesses, workforce system, etc.

– Bonus funding to scale up successful programs– Suppor t for states and localities to attract jobs

back to Amer ica– Online Entrepreneurship Programs

Obama Higher Education Proposals

• Proposals Aimed at Higher Education Reform/Containing College Costs

• Most Require Congressional Author ization and/or Funding

• Five Pr incipal Components– $1 billion Race to the Top for Higher Education

• Modeled after administration’s signature K-12 program

• State based, focused on public institutions

Obama Higher Education Proposals

– $55 million First in the Wor ld grant program• Competitive grants, includes pr ivate institutions

– Modify Campus-Based (Work Study, SEOG, Perkins Loan) Allocations

• Formula changed to reward institutions that hold down tuition, graduate more students, provide “ greater value”

– “ College Scorecard” to provide students and families with more information.

• Information to include earnings and employment information; mechanics uncer tain

Obama Higher Education Proposals

– Preventing the student loan interest rate from increasing from 3.4% to 6.8%

• Rate increase scheduled to take effect July 1• House and Senate bills introduced—H.R. 3826, Rep.

Cour tney (D-CT); S. 2051, Sen. Reed (D-RI)

– Making Amer ican Oppor tunity Tax Credit permanent (Expires 2012) -- Top AACC Pr ior ity

FY 2013 Budget and Appropr iations

• House Budget Committee Chair Paul Ryan (R-WI) unveiled his FY 2013 budget on March 20

• Caps agency budgets at $1.028 T or $19 B less than cap set by the Budget Control Act in August

• Calls for significant spending cuts to domestic programs, while restructur ing some entitlement programs and lower ing tax rates

• Includes budget reconciliation language, but not for education programs

• Senate is not expected to pass a budget resolution

FY 2013 Budget and Appropr iations AACC Pr ior ities

• Pell Grant Program – Maintain Discretionary Maximum Grant With No Program Cuts (Grant increases to $5,645)

• Perkins CTE – Provide $1.27 billion

• Title I I I -A, Strengthening Institutions – Increase funding by $16 m, to $100 million

• Adult Education Act – At least current $595 m

• Workforce Investment Act – Maintain funding

Restoration of ATB Eligibility

• “ Ability to Benefit” (ATB) Students Taken Out of All Student Aid Programs as of 7/1/12

• ATB Students Lack High School Diploma or GED

• Estimates of Impact on Community College Students is Approximately 40,000 Nation-wide, Possibly More

• Your Input (if Impacted) is Needed

Workforce Investment Act

• House Education and Workforce Committee Moving Forward with WIA Reauthor ization – Final Passage This Year Unlikely

• House Republicans Combining Three Bills into One New Vehicle– McKeon Bill– Foxx Consolidation Bill– Heck Bill

WIA Reauthor ization

• House Democrats Recently Introduced Their Own WIA Bill– Hews fair ly close to current law– Includes author ization for Obama’s Community

College to Career Fund

• Senate WIA Reauthor ization Effor t is Stymied

TAACCCT Program

• Second Round Solicitation for Grant Applications on February 24, Proposals Due May 24

• Five Core Elements, Some New Emphases• Grants Slightly Smaller Than Last Year• Fiscal Agents from First Round Cannot be

Fiscal Agents in Second Round• Program Reasonably Healthy, Politically

H.R. 2117

• House-Passed Bill Repeals Dept. of Education Regulations on Credit Hour and State Author ization– Sponsored by Rep. Foxx, Chairwoman of House

Higher Education subcommittee– Opposed by most Democrats– Suppor ted by higher education, including for -

profits– No prospects in Senate

DOD MOU/Veterans Legislation

• AACC and other Higher Education Groups Working with Dept. of Defense to Modify MOU that all Institutions Must Sign in order to Par ticipate in Tuition Assistance Program– Issues in or iginal MOU around credit transfer

policies, other institutional prerogatives– Deadline for signing MOU or iginally end of

2011, pushed back to March 31– Near ing final revised MOU – many

improvements made

Veterans Protection Legislation

• Legislation For thcoming to Require VA and Institutions to Provide Substantial Information about Institutions and Programs– Student outcome and other information to

empower veterans and members of armed forces to make informed choices

– Higher education working with bill sponsors to minimize impact on institutions, make ED source for most information

Contact Information

• David Baime– 202-728-0200 x224, dbaime@aacc.nche.edu

• Jim Hermes– 202-728-0200 x216, jhermes@aacc.nche.edu

• Laur ie Quar les– 202-728-0200 x249, lquar les@aacc.nche.edu