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American Association of Community Colleges
Federal Legislative Update
David BaimeAACC Senior VP for Government Relations & Research
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
