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AACC Federal Legislative Update Webinar, Sept. 21, 2011
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AACC Federal Legislative Update Webinar, Sept. 21, 2011


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The AACC government relations team provided an overview of what Congress has on its plate this Fall. Topics included up-to-the-moment information on FY 2012 funding for Pell Grants and other key …

The AACC government relations team provided an overview of what Congress has on its plate this Fall. Topics included up-to-the-moment information on FY 2012 funding for Pell Grants and other key programs, the work of the deficit reduction "super committee," Trade Adjustment Assistance reauthorization and the latest status of the TAA Community College and Career Training Program, and more.

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  • 1. AACC Fall Legislative UpdateSeptember 21, 2011
    • David Baime
    AACC Senior VP for Government Relations & Research
    • Jim Hermes
    AACC Director of Government Relations
    • Laurie Quarles
    AACC Legislative Associate
  • 2. AACC Legislative Update
    American Jobs Act
    Budget Control Act/Deficit “Super Committee”
    FY 12 Funding
    TAACCCT Grant Program/TAA Reauthorization
    Department of Education Regulations
    Committee on Measuring Student Success
  • 3. American Jobs Act
    $447 Billion Total Package
    $253 billion tax credits and cuts
    $194 billion spending
    Four Main Sections
    Tax cuts for small businesses
    Infrastructure and other spending to encourage hiring
    Unemployment insurance reform and Pathways Back to Work fund
    Payroll tax cut
  • 4. American Jobs Act
    Community College Modernization Funds
    House Bill: FAST Act – H.R. 2948
    $30 billion overall for school modernization
    $5 billion for community colleges
    Distributed by ED to states based on relative community college enrollments
    Four-year institutions potentially eligible based on students in sub-baccalaureate programs
    At least $2.5 million to each state
  • 5. American Jobs Act
    CC Modernization Funds, cont’d
    States have broad discretion to determine methods of intra-state distribution
    Funds for modernization, renovation or repair of existing facilities
    No new construction
    Academic facilities
    Facilities at four-year institutions must be accessible by students in sub-baccalaureate programs
    States to take into account how “green” the project is
  • 6. American Jobs Act
    Pathways Back to Work
    $5 billion fund
    $2 billion for subsidized employment for low-income adults
    $2 billion for summer and year-round employment for low-income youth
    $1 billion for effective work-based employment strategies
    Competitive grants to local elected officials and WIBs
    Community colleges may partner
    Sector-based initiatives, mixed employment and training programs, apprenticeships, etc.
  • 7. American Jobs Act
    Other Notable Provisions
    $35 billion for K-12 and first-responder jobs
    Unemployment insurance reforms – may involve training
  • 8. Budget Control Act
    Enacted Aug. 2, 2011 (P.L. 112-25)
    Federal debt limit raised in stages by $2.1 T
    Created 10-year discretionary caps
    Provided $17 B for Pell over next two FYs by eliminating in-school interest subsidies on graduate student loans
    Requires vote on balanced budget constitutional amendment by 12/31/11
    Established Joint Select Committee on Deficit Reduction— “Super Committee”
  • 9. Budget Control Act
    Discretionary caps in FYs 12-21 reduce spending by $890 billion over 10 years
    For FY 2012 and FY 2013, separate spending caps for security and non-security spending
    FY 2012 cap = $1.043 T ($7B below FY 2011 but $24 B higher than House FY 2012 budget)
  • 10. Budget Control Act
    Student Aid
    Pell Grant program faced an $11.3 B shortfall for FY 2012 but BCA provided $10 B in FY 2012 and $7 B in FY 2013 to address shortfall
    Pell Grants still face a shortfall of $1.3 B for FY 2012
    Eliminates the in-school interest subsidy for graduate and professional student loans made on or after July 1, 2012
    Eliminates repayment incentives on direct loans
  • 11. Budget Control Act
    “Super Committee”
    12-member “Super Committee” charged with producing legislation to reduce deficit by $1.2-$1.5 trillion more over 10 years
    Any cuts and/or revenue increases on table
    Oct. 14 – deadline for other committees to submit recommendations
    Super Committee vote by Nov. 23
    Congress must vote by Dec. 23 – no filibuster, no amendments
  • 12. Budget Control Act
    If the Super Committee fails to propose at least $1.2 Trillion in deficit reduction or Congress rejects plan, SEQUESTRATION
    If no deal by Jan. 15, 2012, BCA triggers cuts beginning on Jan. 2, 2013
    Triggers automatic spending cuts for each of 9 years (FY 2013-2021)
  • 13. Budget Control Act
    Sequestration would trigger $55 B/year in defense cuts and $55 B/year in non-defense, including $38 B in discretionary and $17 B in mandatory programs
    Several programs are exempt including Medicaid, Social Security, and Pell Grants (for two years)
    For FY 2013, estimate of 9% across-the-board cuts to education would start in the middle of the school year
    For FY 2014-2021, will not be across-the-board cuts but further program cuts
  • 14. FY 2012 Labor-HHS-Education Appropriations
    FY 2012 Begins October 1, 2011
    None of the 12 appropriations bills has been enacted
    No FY 2012 budget resolution but the Budget Control Act set aggregate appropriations for FY 2012
    Congress is working on a continuing resolution (CR) while the appropriations process continues
    Partisan dispute about offsets for FEMA funding
  • 15. FY 2012 Labor-HHS-Education Appropriations
    Senate Marked Up its FY 2012 Labor-HHS-Education Bill on Sept. 20, 2011
    Pell Grant maximum preserved at $5,550 despite shortfall
    $100 Million for the Workforce Innovation Fund
    $158 billion Labor-HHS-Ed discretionary total due to new budget caps - $308 million below FY 2011
    Senate expected to proceed with full committee mark up this afternoon
    House has postponed its Labor-HHS-Ed appropriations mark up several times; in lieu of separate bill, an omnibus
  • 16. Trade Adjustment Assistance Act
    Baucus–Camp Reauthorization Bill
    Senate considering this week as amendment to another trade bill
    Compromise bill establishes expanded benefits that fall between ARRA authorization and current law
    Service industry eligibility
    $575 million for training and other services
    Continued authorization of TAACCCT program
  • 17. TAACCCT Program
    Grant Announcement Expected Very Soon
    $500 million for first-year grants must be obligated by Sept. 30
    Proposals requesting approximately $3 billion received in first round
    90% of proposals from community colleges
  • 18. Department of Education (ED) Regulations
    Obama Administration Has Displayed Strong Propensity to Regulate Higher Education
    Regulations Not Always Sensitive to Campus Realities and Student Needs
    For-Profit Education Primary Target of Regulations; Community Colleges “Collateral Damage”
  • 19. ED Regulations—Gainful Employment
    Regulation a Fiasco for Community Colleges—Huge New Compliance Burdens With Little Meaningful Cleaning Up of “Rotten Apples” in For-Profit Sector
    Muscle of For-Profit Lobbying Manifested
    Widespread Difficulties in CC Implementation
    Initial 7/1/11 Disclosures and Initial Reporting 11/1/11
    SSA Matches Mark Policy Sea Change
  • 20. ED Regulations—State Authorization
    Another Regulation Spurred by For-Profit Abuses
    Institutions Must Demonstrate Compliance With State Authorization Requirements Wherever They Offer Programs; Huge and Negative Implications for Distance Learning
    Regulation Thrown Out in Court
    Private Efforts are Underway to Rationalize and Simplify State Efforts
  • 21. ED Regulations—Program Integrity, Etc.
    Three Year Default Rates and Higher CC Defaults are Coming
    New “Satisfactory Academic Progress” Standards Have Created Problems
    New Verification Procedures Laborious
    Low FAFSA Application Rates Still an Issue
  • 22. Committee on Measuring Student Success
    Committee Created by Congress in 2008 HEA Amendments to Review and Suggest Changes to Two-Year Graduation Rate Calculation
    Chaired by Head of CCRC and Nearing Completion of Work
    ED Will Next Decide How to Implement; IPEDS Route Likeliest
    Big Opportunity for Community Colleges
  • 23. Contact Information
    David Baime
    202-728-0200 x224,
    Jim Hermes
    202-728-0200 x216,
    Laurie Quarles
    202-728-0200 x249,