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AACC Federal Legislative Update Webinar, Sept. 21, 2011
 

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

    • 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
    • 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
    • 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
    • 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
    • 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
    • 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.
    • American Jobs Act
      Other Notable Provisions
      $35 billion for K-12 and first-responder jobs
      Unemployment insurance reforms – may involve training
    • 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”
    • 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)
    • 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
    • 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
    • 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)
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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”
    • 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
    • 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
    • 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
    • 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
    • Contact Information
      David Baime
      202-728-0200 x224, dbaime@aacc.nche.edu
      Jim Hermes
      202-728-0200 x216, jhermes@aacc.nche.edu
      Laurie Quarles
      202-728-0200 x249, lquarles@aacc.nche.edu