2011 Year-End Legislative Update

2011 Year-End Legislative Update

• 1.
  AACC Year -EndLegislative Update December 14, 2011 AACC Office of Government Relations and Research David Baime, Senior Vice President Jim Hermes, Director Laurie Quarles, Legislative Associate
• 2.
  AACC Legislative Update • FY 2012 Funding • Budget Contr ol Act/Deficit “ Super Committee” • Amer ican Jobs Act/Veter ans Legislation • Wor kfor ce Legislation • TAA CCCT Gr ant Pr ogr am • Committee on Measur es of Student Success • The Year Ahead
• 3.
  FY 2012 Labor-HHS-Education Appr opr iations • 3 of 12 Appr opr iations Bills Enacted • 9 Bills to be Passed in Lar ge Package • Continuing Resolution Expir es 12/16 • Senate Committee Appr oved LHHS Bill • House Posted Bill – No For mal Action Taken • Level Funding for Many Pr ogr ams – Per kins CTE pr ogr ams
• 4.
  Pell Gr ants •$10 billion Pr ovided by Budget Contr ol Act for FY 2012 – Left $1.3 billion shor tfall to be filled by appr opr iator s • House Dr aft Cuts Total $3.6 billion – Eliminates eligibility for less-than-halftime and ability-to-benefit students – Lower s income pr otection allowances, r educing eligibility
• 5.
  Pell Gr ants •House Cuts, cont’ d – Cuts eligibility fr om 18 to 12 full-time semester s – Changes auto-zer o EFC fr om $30 K to $15 K – Counts EI TC and other funds as income
• 6.
  Pell Gr ants •Senate LHHS Bill Took Much Differ ent Appr oach – Savings by eliminating student loan inter est subsidy dur ing gr ace per iod – House Budget Committee r uling later r educed these savings to $400 million, leaving $900 million to be saved by other means
• 7.
  Wor kfor ceTr aining Funds • House Bill Slashes WI A Pr ogr ams by $2.2 Billion, or 75% – Advance funding, which is bulk of WI A pr ogr am funding, eliminated – Shift fr om pr ogr am year to fiscal year given as r eason – Cuts would be extr emely difficult to r estor e next year , likely per manent • Senate: Level Funding
• 8.
  Minority Serving Institutions Funding (in $ millions) Type of Minority- Serving Institution Current Proposed Change HEA Title Funded V Hispanic 104.4 17.4 -87.0 III Historically Black 237.0 152.0 -85.0 III Tribal 26.8 0 -26.8 III Alaska Native and 13.4 0 -13.4 Native Hawaiian III Predominantly Black 9.6 0 -9.6 III Asian 3.2 0 -3.2 American/Pacific Islander III Native American, 3.2 0 -3.2 nontribal Totals $397.6 $169.4 -$228.2
• 9.
  Final FY 2012LHHS Bill • Deal on Bill Repor tedly Reached, But Not Yet Filed – Dispute over payr oll tax holding up spending bill – One-week CR likely needed • Pell Gr ants – Repor ted Cuts – Cuts eligibility fr om 18 to 12 full-time semester s – Changes auto-zer o EFC fr om $30 K to $20 K – Eliminates eligibility for ATB students
• 10.
  Budget Contr olAct • Maj or Pr ovisions – Feder al debt limit r aised in stages by $2.1 T – Cr eated 10-year discr etionar y caps – Pr ovided $17 B for Pell over next two FYs by eliminating in-school inter est subsidies on gr aduate student loans – Requir es vote on Balanced Budget Constitutional Amendment by 12/31/11 – Established Joint Select Committee on Deficit Reduction— “ Super Committee”
• 11.
  Budget Contr olAct • Maj or Pr ovisions, cont’ d – Discr etionar y caps in FYs 12-21 r educe spending by $890 billion over 10 year s – For FY 2012 and FY 2013, separ ate spending caps for secur ity and non-secur ity spending – FY 2012 cap = $1.043 T ($7B below FY 2011 but $24 B higher than House FY 2012 budget)
• 12.
  BCA Sequestr ation •Requir es Cuts of $984 billion for Fiscal Year s 2013 – 2021 – $1.2 tr illion minus $216 in inter est savings – $109 billion per year – split evenly between defense and non-defense – Discr etionar y funding will exper ience an acr oss the boar d cut for FY 2013 – For FYs 2014 – 2021, caps will be lower ed and appr opr iator s have discr etion wher e to cut
• 13.
  BCA Sequestr ation –Mandator y funding subj ect to acr oss-the-boar d cuts thr ough 2021 • Complex for mula to deter mine exact amounts, dependent on pr evious year ’ s outlays – Many pr ogr ams exempt fr om sequestr ation, including Pell Gr ants (discr etionar y por tion 2013 only) – Because of exemptions, r oughly 75% of cuts would come fr om discr etionar y pr ogr ams – Cuts of appr oximately 15% to discr etionar y spending fr om the cur r ent baseline
• 14.
  BCA Sequestr ation •Sequestr ation Not Until Januar y 2013, Leaving Congr ess One Year to “ Fix” Things – Obama vow to veto legislation r educing cuts – Attempts to avoid defense cuts – Fur ther attempts at “ Gr and Bar gain” ?
• 15.
  Amer ican JobsAct • $447 Billion Over all – $253 billion tax cr edits and cuts – $196 billion spending • Four Main Sections – Tax cuts for small businesses – Tax cuts and spending to encour age hir ing – Unemployment insur ance r efor m and Pathways Back to Wor k fund – Middle class tax r elief
• 16.
  Amer ican JobsAct—CC Facilities • $5 Billion Pr oposed in FY 2012 for Community College Moder nization and Heavy Equipment – Mor e Than ½ of AGI Funding • Funding Awar ded to States on Basis of Relative Community College Enr ollment • States Lar gely Fr ee to Allocate Funds as They See Fit
• 17.
  Amer ican JobsAct • Senate Voting on I ndividual Pieces of Package – Tax cr edits for hir ing veter ans only par t of package to pass to date • Par t of lar ger bill that also gr anted an extr a year of Montgomer y GI Bill benefits to older veter ans – All other bills failed to clear filibuster – Vote on school and community college moder nization funds – FAST Act – hoped for next year
• 18.
  WI A Reauthorization • House Republican Reauthor ization Bills – H.R. 3610: Consolidates up to 33 j ob tr aining pr ogr ams • Response to GAO r epor t – H.R. 3611: Focus on business engagement • Would extend business maj or ity on wor kfor ce investment boar ds • Collins-McCaskill Payr oll Tax Cut Bill – Would r equir e OMB to r ecommend pr ogr am consolidation; half of savings dedicated to deficit r eduction.
• 19.
  TAACCCT Gr antPr ogr am • Fir st Round Gr ants – Ranged fr om $2.5 million to near ly $25 million – DOL still wor king with some states to finalize $2.7 million gr ants – Fir st r ound heavily favor ed consor tia gr ants, r eflecting applicant pool • Second Round Announcement Expected Next Month • No I mminent Thr eats to Funding – But Stay Vigilant!
• 20.
  Committee on Measures of Student Success • Cr eated by Congr ess in 2008 HEA Amendments to Review and Suggest Changes to Two-Year Gr aduation Rate Calculation • Repor t Submitted to ED Secr etar y • Substantial Modifications to Cur r ent Calculation Recommended • ED Will Next Decide How to I mplement; I PEDS Route Likeliest
• 21.
  Committee on Measures of Student Success • Recommendations I nclude: – I ncluding tr ansfer s in completion r ate – Adding par t-time students to r epor ting in separ ate cohor t for par t-time students – Separ ate cohor t for r emedial students – Longer time-fr ame for tr acking • AACC Has Submitted Comments and Will Wor k to I nfluence I mplementation
• 22.
  The Year Ahead •Budget I ssues Will Dominate 2012 Congr essional Agenda • Looming Sequestr ation • Obama Budget • Pr esidential Election Politics • Bush Tax Cuts Due to Expir e in 2012 • Br oader Economic Developments—Likely to Rock US • Pr one to Br inksmanship
• 23.
  Contact I nformation • David Baime – 202-728-0200 x224, dbaime@aacc.nche.edu • Jim Her mes – 202-728-0200 x216, j her mes@aacc.nche.edu • Laur ie Quar les – 202-728-0200 x249, lquar les@aacc.nche.edu