June21 Stand Up for Pell Grants Webinar (AACC-ACCT)

Stand Up for Pell Grants!Community College Action CampaignJune 21, 2011David BaimeAACC Senior VP, Government Relations & ResearchJee Hang LeeACCT Director of Public Policy

Overview of Presentation• Introductions• Why Pell Grants Matter• Community College Students and Pell • Pell Grant Program Growth• Politics and Funding Landscape• FY 2012 Funding Status• FY 2012 Appropriations• Community College Grassroots Advocacy• AACC‐ACCT Resources• Questions

Why Pell Grants Matter• Pell Grants = Access and Success at Community Colleges for Millions of Financially Needy Students• Pell Grants Represent the Federal Government’s Primary Commitment to Ensuring Equality of Opportunity to Higher Education• Traditionally All Parties, Branches of Government, Sectors of Higher Education and the American Public Strongly Support the Pell Grant Program

Community College Students and Pell Grants• Pell Grants Have Been the Primary Funding Source for Community College Students• More Important Now Than Ever as a Result of Tuition Increases, State and Local Cuts• During Recession, Tuitions Have Risen (7.3% in 2009‐10 and 6% in 2010‐11) while Incomes Have Declined• Pell Grant Maximum is Currently $5,550• Enrollments at Community Colleges Have Surged

Community College Students and Pell Grants• Community College Pell Grants Have Increased Dramatically, Paralleling Program Growth• 38% Increase in Pell Cost in 2009‐10 from Prior Year• Over 2.8 Million Community College Pell Awards in 2009‐10• Community College Students Received Over $9.3 Billion in Pell Grants in 2009‐10• Community College Students Received 31% of Pell Dollars and Represent 35% of All Recipients

Pell Grant Program Growth• Pell Grant Program Has Witnessed Unprecedented Growth – Program Costs doubled over last 3 years• Pell Grants = 46% of the ED’s FY 10 Budget• Growth Result of Congressional Actions, Recession, Greater Demand• Huge Shortfalls (Pell Funding Does Not Cover Grant Commitments) – Pell as an “Appropriated Entitlement”

Pell Grant Recipients10,000,000 9,000,000 Recipients 8,000,000 up in 7,000,000 three years 6,000,000 5,000,000 Total 4,000,000 Community College 3,000,000 2,000,000 1,000,000 0

Pell Grant Program Growth –Congressional Actions Adding Cost• CCRAA (September ‘07) Mandatory Increases to Maximum Grant Funded by Cuts to Loan Subsidies; Increased Income Protection Allowances (IPAs)• Higher Education Act Reauthorization (HEOA, August ‘08) Increased ATB Eligibility• ARRA (Stimulus Bill – February ‘09) Increased Maximum Grant by $500 for FYs 09 and 10, Provided Additional Funding• SAFRA (March ‘10) Provided Annual Mandatory Increases, Funded Shortfall, Increased IPAs

Politics and Funding Landscape• Pell Grant Program’s Extraordinary Growth Has Drawn High‐Pitched, Bipartisan Concern• Political Support for Pell Grant Program Has Changed • Several Members of Congress Have Questioned Program Costs • Negative Comments from Some Congressional Leaders • Both Parties Seeking to Reduce Program Costs through Eligibility Changes• FY 2011 Appropriations (April ‘11) Eliminated Year‐Round or ‘Summer Pell’ to Maintain the Pell Max at $5,550

Politics and Funding Landscape• The Public Still Strongly Supports Education Funding• Education Funding Is Just 3% of Federal Budget• Many Families Concerned With How to Afford Higher Education• Public Interested in Deficit Reduction

FY 2012 Funding Status• FY 2012 Congressional Budget Will Not Be Enacted – Appropriations Remain Focus• Obama’s FY 12 Budget (Feb. ‘11) Preserved $5,550 Pell Max by Eliminating Summer Pell and Making Other Changes to Student Aid Programs to Achieve Savings• House‐Passed FY 12 (“Ryan”) Budget Resolution Assumes Major Reductions in Pell Grant Program ‐‐ $3,150 max• House FY 12 Labor‐HHS‐ED Allocation $18 Billion below FY 11; $7 Billion Below H.R. 1; At FY 2004 Funding Level (Excluding Inflation); Does NOT Address $11.2 Billion Pell Shortfall• House Subcommittee Action Scheduled for Late July – Pell Grant Program Cuts Likely

FY 2012 Appropriations• Federal Funding Environment Has Changed; FY 2012 Appropriations Process Will Be Complicated, High‐Profile, Drawn Out, and Politically Charged• July To Be Crucial Month: Debt Ceiling Increase, Appropriations Implications, and Long‐term Cuts• Large Cost of Pell Puts Downward Pressure on Funding for Other Programs• Advocacy Can Make a Difference in Congress, Elevating Pell Grants and Student Aid as Priorities

Community College Grassroots Advocacy• AACC and ACCT Urge Action to Support the $5,550 Pell Grant Maximum and Keeping Pell Grants Whole in FY 2012• Immediate Contacts to Members of Congress Needed• Board Resolutions (copies to AACC and ACCT)• Op‐Eds and Media Coverage• Engaging Students in the Campaign to Save Pell Grants• Announcing New AACC‐ACCT Pell Grant Action Center Website www.pellgrantactioncenter.org

Questions & Comments

Contact Information • David Baime dbaime@aacc.nche.edu• Jee Hang Lee jhlee@acct.org

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June21 Stand Up for Pell Grants Webinar (AACC-ACCT)

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June21 Stand Up for Pell Grants Webinar (AACC-ACCT) Presentation Transcript