Election Promises and Funding Realities: What to Expect after the Dust Settles Brett E. Lief Board...

Election Promises and Funding Realities: What to Expect after the Dust Settles

Brett E. Lief Board MemberDirector of Strategic Alliances

Access MoneyPolitics

Is it about…

Timeline of Major Student Aid Legislation

5© 2012 Inceptia Confidential. Do not copy or redistribute without expressed written permission from Inceptia.

1982•Defense Authorization Act

1986•Reauth of HEA

1993•Student Loan Reform Act

1997•Taxpayer Relief Act

1998•Higher Education Amendments

1958

•National Defense Education Act

1965

•Higher Education Act of 1965 (HEA)

1972

•Basic Educational Opportunity Grant Enacted

1978

•Middle Income Assistance Act

1980

•Reauth of HEA

1981

•Omnibus Budget Recon Act

2007

•College Cost Reduction and Access Act

2010

•Student Aid and Fiscal Responsibility Act

2011

•FY2011 Continuing Budget Resolution – eliminated year-round pell

2011

•Budget Control Act

2012

•Consolidated Appropriations Act

IS IT ABOUT ACCESS?

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• Society benefits from educated workforce

• Grants provide access, Loans provide choice

• Role of government to stand behind student

Original Guiding Principals


• Belief that individuals, not society, benefit from postsecondary education and training

• Loans provide both access and choice• Government is positioning itself between

students and schools• Requiring additional school accountability

Original Guiding Principals:How They Have Changed


• Three-year Cohort Default Rates• Gainful Employment

• Focuses on for-profit institutions and effects all other schools

• Current job market may make this a concern for more institutions

• How many of graduates are unable to find jobs?

• Administrative Capabilities of Schools• Compliance and Data Security

• Senate Hearings on For-Profit Institutions

Current Public Policy Discussions


You are being watched…• Special Audit Services – Improper

Payments Elimination and Recovery Act of 2010

• “Under IPERA, any contractor performing the aforementioned requirement will be paid for its services based on a percentage of collections… The Department is seeking information from certified public accounting firms to assist in the development of a plan to conduct payment recapture audits…”

• ED OIG Report (May-2012) - of the 19 reports issued, the OIG identified $44 million in financial recommendations, closed 75 investigations of fraud and corruption involving ED programs and operations and secured nearly $16 million in settlements, fines and other recoveries.

• Consumer Financial Protection Bureau• Financial Aid “Shopping Sheet”© 2012 Inceptia Confidential. Do not copy or redistribute without expressed written permission from Inceptia. 10

IS IT ABOUT MANAGING MONEY?

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IS IT ABOUT POLITICS?

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• The 112th Session: “The Gridlock Congress”• Very little major legislation, but some steps taken on

education issues --policy direction more in focus

• The budget mess: • The 6 Month Continuing Resolution – what it really

means• Sequestration• The Remainder of FY13

• The (really) lame duck session• Taxes (Payroll taxes, AMT, Cap Gains, Bush Tax

Cuts, Extenders), Doc Fix, Sequester, Debt ceiling

Congress


• Congressional Gridlock = Administration takes matters into their own hands, i.e. new regs., waivers

• Many new regulations have the potential to be game changers – could impact education policy for years; procedurally tough to overcome for a new Congress and/or President

• Because of past gridlock, Congress will face an unprecedented situation in which nearly every major education law will be scheduled for reauthorization: ESEA, HEA, WIA, CTE, CCDBG, IDEA, & Welfare

Congress


• The Administration: Turnover no matter who wins

• Big changes in Congress on key Ed Committees, especially if control changes

• Intra-party battles will be more important than inter-party battles with each party becoming more unified than ever

One Thing is Certain


• Elementary and Secondary Reauthorization due in 2007

• IDEA due for reauthorization 2008• WIA due for reauthorization• Higher Education Act Reauthorization

• Ten-years and eight extensions

The Agenda


• Longer it takes the more opportunities for changes through budget • Education could receive significant attention as the President looks

for possible victories outside of budget policy• Signature Administration initiatives continue

• Community College agenda• Regulatory expansion

• HEA Reauthorization possible, but big differences on issues like for-profits, Pell, and accreditation among others

• Muddled outlook for student loan providers; Administration still likely to push cuts to pay for Pell and Interest Rate fix

• Education Funding Outlook stable with moderate increases possible to larger programs -- Pell likely to receive increase, and interest rate fix on the table once again

• No Child Left Behind principals applied to higher education

The Agenda


• Will be data driven• Will include state

cooperation• Include analysis of

programs serving today’s generation

• Programs will be looked at on meeting federal program basis

Change is Coming


Advocacy on All Levels

Individual Schools

Regional Association

Type of Schools

National Association

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QUESTIONS?

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CONTACT INFORMATIONBrett Lief

[email protected]

Election Promises and Funding Realities: What to Expect after the Dust Settles Brett E. Lief Board...

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