2011 Year-End Legislative Update
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Transcript of 2011 Year-End Legislative Update
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AACC Year-End Legislative Update
December 14, 2011
AACC Office of Government Relations and ResearchDavid Baime, Senior Vice President
Jim Hermes, Director
Laurie Quarles, Legislative Associate
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AACC Legislative Update
• FY 2012 Funding• Budget Control Act/Deficit “ Super Committee”• Amer ican Jobs Act/Veterans Legislation• Workforce Legislation• TAA CCCT Grant Program• Committee on Measures of Student Success• The Year Ahead
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FY 2012 Labor-HHS-Education Appropr iations
• 3 of 12 Appropr iations Bills Enacted• 9 Bills to be Passed in Large Package• Continuing Resolution Expires 12/16• Senate Committee Approved LHHS Bill • House Posted Bill – No Formal Action
Taken• Level Funding for Many Programs
– Perkins CTE programs
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Pell Grants
• $10 billion Provided by Budget Control Act for FY 2012– Left $1.3 billion shor tfall to be filled by
appropr iators• House Draft Cuts Total $3.6 billion
– Eliminates eligibility for less-than-halftime and ability-to-benefit students
– Lowers income protection allowances, reducing eligibility
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Pell Grants
• House Cuts, cont’d– Cuts eligibility from 18 to 12 full-time semesters– Changes auto-zero EFC from $30 K to $15 K– Counts EITC and other funds as income
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Pell Grants
• Senate LHHS Bill Took Much Different Approach– Savings by eliminating student loan interest
subsidy dur ing grace per iod– House Budget Committee ruling later reduced
these savings to $400 million, leaving $900 million to be saved by other means
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Workforce Training Funds
• House Bill Slashes WIA Programs by $2.2 Billion, or 75%– Advance funding, which is bulk of WIA
program funding, eliminated– Shift from program year to fiscal year given as
reason– Cuts would be extremely difficult to restore next
year , likely permanent• Senate: Level Funding
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Minority Serving Institutions
HEA Title
Type of Minority-Serving Institution
Funded
Funding (in $ millions)
Current Proposed Change
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 Native Hawaiian
13.4 0 -13.4
III Predominantly Black 9.6 0 -9.6
III Asian American/Pacific Islander
3.2 0 -3.2
III Native American, nontribal
3.2 0 -3.2
Totals $397.6 $169.4 -$228.2
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Final FY 2012 LHHS Bill
• Deal on Bill Repor tedly Reached, But Not Yet Filed– Dispute over payroll tax holding up spending
bill– One-week CR likely needed
• Pell Grants – Repor ted Cuts– Cuts eligibility from 18 to 12 full-time semesters– Changes auto-zero EFC from $30 K to $20 K– Eliminates eligibility for ATB students
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Budget Control Act
• Major Provisions– 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”
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Budget Control Act
• Major Provisions, cont’d– Discretionary caps in FYs 12-21 reduce
spending by $890 billion over 10 years– For FY 2012 and FY 2013, separate 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)
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BCA Sequestration
• Requires Cuts of $984 billion for Fiscal Years 2013 – 2021– $1.2 tr illion minus $216 in interest savings– $109 billion per year – split evenly between
defense and non-defense– Discretionary funding will exper ience an across
the board cut for FY 2013 – For FYs 2014 – 2021, caps will be lowered and
appropr iators have discretion where to cut
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BCA Sequestration
– Mandatory funding subject to across-the-board cuts through 2021
• Complex formula to determine exact amounts, dependent on previous year ’s outlays
– Many programs exempt from sequestration, including Pell Grants (discretionary por tion 2013 only)
– Because of exemptions, roughly 75% of cuts would come from discretionary programs
– Cuts of approximately 15% to discretionary spending from the current baseline
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BCA Sequestration
• Sequestration Not Until January 2013, Leaving Congress One Year to “ Fix” Things– Obama vow to veto legislation reducing cuts– Attempts to avoid defense cuts– Fur ther attempts at “ Grand Bargain” ?
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Amer ican Jobs Act
• $447 Billion Overall– $253 billion tax credits and cuts– $196 billion spending
• Four Main Sections– Tax cuts for small businesses– Tax cuts and spending to encourage hir ing– Unemployment insurance reform and Pathways
Back to Work fund– Middle class tax relief
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Amer ican Jobs Act—CC Facilities
• $5 Billion Proposed in FY 2012 for Community College Modernization and Heavy Equipment
– More Than ½ of AGI Funding
• Funding Awarded to States on Basis of Relative Community College Enrollment
• States Largely Free to Allocate Funds as They See Fit
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Amer ican Jobs Act
• Senate Voting on Individual Pieces of Package– Tax credits for hir ing veterans only par t of
package to pass to date• Par t of larger bill that also granted an extra year of
Montgomery GI Bill benefits to older veterans
– All other bills failed to clear filibuster– Vote on school and community college
modernization funds – FAST Act – hoped for next year
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WIA Reauthor ization
• House Republican Reauthor ization Bills– H.R. 3610: Consolidates up to 33 job training
programs• Response to GAO repor t
– H.R. 3611: Focus on business engagement• Would extend business major ity on workforce
investment boards
• Collins-McCaskill Payroll Tax Cut Bill– Would require OMB to recommend program
consolidation; half of savings dedicated to deficit reduction.
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TAACCCT Grant Program
• First Round Grants– Ranged from $2.5 million to near ly $25 million– DOL still working with some states to finalize
$2.7 million grants– First round heavily favored consor tia grants,
reflecting applicant pool• Second Round Announcement Expected
Next Month• No Imminent Threats to Funding – But Stay
Vigilant!
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Committee on Measures of Student Success
• Created by Congress in 2008 HEA Amendments to Review and Suggest Changes to Two-Year Graduation Rate Calculation
• Repor t Submitted to ED Secretary
• Substantial Modifications to Current Calculation Recommended
• ED Will Next Decide How to Implement; IPEDS Route Likeliest
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Committee on Measures of Student Success
• Recommendations Include:– Including transfers in completion rate– Adding par t-time students to repor ting in
separate cohor t for par t-time students– Separate cohor t for remedial students– Longer time-frame for tracking
• AACC Has Submitted Comments and Will Work to Influence Implementation
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The Year Ahead
• Budget Issues Will Dominate 2012 Congressional Agenda
• Looming Sequestration• Obama Budget• Presidential Election Politics• Bush Tax Cuts Due to Expire in 2012• Broader Economic Developments—Likely to
Rock US• Prone to Br inksmanship
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Contact Information
• David Baime– 202-728-0200 x224, [email protected]
• Jim Hermes– 202-728-0200 x216, [email protected]
• Laur ie Quar les– 202-728-0200 x249, lquar [email protected]