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LEARNING OBJECTIVES

To Understand current implications of federal policies and regulatory issue that specifically impact student affairs.

To gain insight on how to best navigate and manage the added responsibility of federal policies and regulatory issues in your role as SSAO.

To understand the future landscape of new or changing policies and their impact on higher education.

COLLECTION OF ISSUES

Group Introductions

Policies impacting your role

Regulations impacting your role

Policies/Regulations creating hardships on staff and students

HIGHER EDUCATION AND FEDERAL POLICY LOBBYING EFFORTS

1950s began a more systematic way of lobbying the federal government:GI Bill, Post War Years led to desires for a college degree within the middle class. Growing Prominence led to desire for share of federal dollars.

Political unrest on campuses in the 1960s provoked a conservative backlash, concerned that the government would crack down on colleges’ historic autonomy, higher ed stepped up its Washington presence.

1968 American Council on Education took over One Dupont Circle and declared themselves as the unifying voice of higher education.

1972 Congress was considering ways to expand college access, colleges advocated an approach where the federal government would give funding to institutions to subsidize low income students, Congress in turn gave those funds directly to students to use at the college of their choice – Senator Claiborne Pell of Rhode Island. This was seen as a lack of lobbying sophistication.

LOBBYING EFFORTS, CONTINUED As a result, 1976 led to the creation of NAICU, the purpose of the creation was

to lobby the government more effectively.

Federal role continued to grow with increase in subsidizing research more heavily and all aspects of college life, gender equity of sports and campus safety.

1994 elections gave us the Republican takeover of Congress and the efforts to cut all of federal spending, including higher education. Efforts to cut financial aid were thwarted as were the efforts to eliminate affirmative action programs.

1995 led to a threat to college autonomy with the Department of Education’s efforts to audit institutions it felt were financially mismanaged. Higher education lobbyists banded with conservative allies and eliminated the program.

Higher Ed Lobby is described as aggressive but understated, money is not the main level of power – in the late 2000s – higher ed associations spent $6.2M on lobbying compared to private entities as GE who spent $24.2M. Due to the status of 501© (3), under the tax code associations are only allowed to spend no more than 20% of their budget on these efforts.

LOBBYING EFFORTS, CONTINUED Higher Ed wields power in two effective subtle ways:

Inside game, quiet sit down meetings and often focus on the technical questions of policy. Congressional staffs depend on institutions and associations to help them make sense of complicated legislative proposals and the impact on students.

Skillful use of its hometown ties, colleges typically have prominent positions in the economic, cultural and civic life of their communities, often giving

Members of Congress much needed visibility and the admissions process of which most will deny has over the years been a way to “take care of those close”.

Over the years, more associations were formed to address specific constituencies.

1997, Art Levine wrote that the change in the government’s behavior toward higher education was a result of the status of higher education as a mature

industry, a increase in demand for public resources and a new saturated enrollment market.

LOBBING EFFORTS, CONTINUEDConstance Ewing Cook wrote an article in the Journal of Higher Education entitled

Lobbying for Higher Education: How Colleges and Universities Influence Federal Policy. The article reviewed government relations at a national level and examines higher education association lobbying efforts. She based her findings on a 1994 survey of responses from 1500 college and university presidents on their thoughts and satisfaction with the “big six” and their federal relations; ACE, AASCU, NAICU, AAU, AACC, NASULGC.

Largest Challenge up until now was the 104th Congress slashes in education spending, the lobbying efforts were seen as successful.

Continued Struggles:

• Take a united stand or compromise under a collective position – which some feel it dilutes the higher ed voice

• Should Higher Education lobby like a trade association, using PACs or take the “high ground” and expect Congress to go along. The survey she took revealed that college presidents felt Congress would perceive higher ed as a “special interest” and not a public interest as it is now seen.

SSAO ROLE IN THE FEDERAL/STATE POLICY DISCUSSION

Administrative Issues

Diminishing Resources

Compliance/Regulatory Issues

Strategic Planning

Student Learning & Success Related Issues

Completion/Graduation Rate

Persistence

Assessment & Accountability

Survey of SSAOs Sponsler/Wesaw

SSAO ROLE IN THE FEDERAL/STATE POLICY DISCUSSION

Top Three Health, Wellness and Safety Issues

Mental Health Concerns

Alcohol Abuse

Illicit Drug Abuse

Top Three Campus Culture Issues on Campus

Changing Student Demographics

Diversity, Equity & Inclusion

Campus Safety

TOP ISSUES FACING HIGHER EDUCATION POLICY

Renewing Higher Education Reauthorization Act

Accreditation

Workforce Development – Skills Gap

College Costs/Containment/Price Sheet

Quality Assurance

Assessment

Economy/Cost-Value Comparisons

Mixed Messages for Policy Makers

Future of Student Aid

Tax Issues

MOOCs

ImmigrationForbes 2/14 & Assoc of Governing Boards & Governing Magazine 3/28/14

2014 TOP STATE ISSUES FACING HIGHER EDUCATION

Harnessing Higher Education to Address State Economic Goals

Agreements linking State Funding & Tuition Policy

Allocation of State Higher Education Appropriations

State Attainment and College Completion Goals

Vocational & Technical Education

College Readiness

STEM Related Initiatives

State Capitol Outlay & Maintenance Funding

Guns on Campus

ImmigrationAASCU Policy Matters

LOBBYING ON BEHALF OF HIGHER EDUCATION

University Based/Professional RolePrimary Contact (PC) with State/Federal GovernmentPresident’s CouncilContact with PC – Regular MeetingsCommunication LinesUniversity Priorities/Research vs PolicyStaff Involvement

Personal Role in LobbyingClarification from InstitutionAssociation AffiliationConcerned Citizen Impact on Institution

CURRENT FEDERAL POLICY ISSUES Budget

Immigration

Tax Issues Impacting Higher Education

Higher Education Reauthorization/Hearings

Negotiated RulemakingGainful EmploymentVAWA

Rankings Scorecard-Presidents Plan for College Costs

MOOCs

Globalization

ACA update/Employer Clarification

NCAA/Unions- Northwestern Ruling

POLICY & COMPLIANCE Leadership Role in Issues, within division and on campus

Policy ChallengesTimelinessState vs Federal

Compliance ChallengesCentral tracking systemSupport for complianceState vs Federal

Support within DivisionNew ProfessionalsMid Level ManagersGraduate Programs

FEDERAL POLICY KEY PLAYERS AND PATHS Executive Branch

President ObamaSecretary of Education Arne Duncan, Asst Secretary for Postsecondary Education – Erika MillerSecretary of Labor Thomas Perez

Legislative BranchHouse of Representatives, Education and the WorkforceChairman Kline, MN; Ranking Member George Miller, CASubcommittee – Higher Education and Workforce Training, Chairwoman Foxx, North Carolina; Ranking Member Reuben Hinojosa,

TXSenate, Health, Education, Labor and PensionsChairman Harkin, IA; Ranking Member Alexander, TNSubcommittee – Children and FamiliesChairwoman Hagan, NC; Ranking Member Enzi, WY

LEGISLATIVE PROCESS

Member champions issue, leg counsel writes a bill

Submits to Chamber, either on the docket or read once and goes to jurisdictional committee

Rarely fast tracked

Committee either moves to subcommittee or sits on it

Typically moves through a hearing process then voted on

Moves to full Committee, then hearings at full committee level

Could be pulled onto the floor schedule, but has to pass through Rules committee

Floor action

Many bills are introduced knowing they will never be voted on as a stand alone bill but to be rolled into another bill

LEGISLATIVE ISSUES 2015 President’s BudgetThe Pell Grant Program: Level-funded at $22.8 billion, which would allow the maximum award

to increase $100 to $5,830 because of an automatic, mandatory increase in funding. That increase would take effect in the 2015-2016 academic year. The plan also calls for strengthening the “academic progress requirements in the Pell Grant program to encourage students to complete their studies on time.”CBO release study – $3.57 B surplus for FY2015, shortfalls for FY2016 and beyond

TRIO ($838 million), GEAR UP ($302 million), and the Graduate Assistance in Areas of National Need Program ($29 million) would receive level funding.

Federal Work-Study: Level-funded at $975 million.

The Supplemental Education Opportunity Grant Program: $733 million, a cut of $1 million from FY 2014.

National Institutes of Health: $30.2 billion, an increase of roughly $200 million from FY 2014.

National Science Foundation: $7.255 billion, an increase from $7.180 billion in FY 2014.

First In The World: $100 million, an increase of $25 million from FY 2014.

First In The World for Minority-Serving Institutions: $75 million for Title III institutions “to undertake reforms and pursue innovations to improve the performance of those institutions in enrolling and graduating low-income students.”

LEGISLATIVE ISSUES New Proposed Funding in 2015 President’s Budget

The Obama administrations college ratings plan: $30 million total “for pilot and demonstration programs” with $10 million of that total going to “support for the development and refinement of a new college rating system”

State higher education performance fund: $4 billon over four years (with $1 billion in FY15) for a new competitive matching grant program for states to support, reform and improve the performance of their public higher education systems (a version of the Race to the Top: College program first proposed in FY 2013).

College opportunity and graduation bonus: $7 billion over ten years (with $647 million in FY15) to support a program to reward colleges that successfully enroll and graduate a significant number of low- and moderate-income students on time and encourage all institutions to improve their performance.

LEGISLATIVE ISSUES Tax Plans in 2015 President’s Budget

Permanently extend the American Opportunity Tax Credit.Eliminate taxability of loan amounts forgiven under Income-

Based and Income- Contingent repayment programs.

Make Pell Grants excludable from taxable income, and better coordinate Pell Grant and AOTC.

Cap the tax value of certain itemized deductions, including the charitable deduction, for upper-income taxpayers.

LEGISLATIVE ISSUES

Immigration Senate passed S.744 included a path to citizenship for students (DREAM

ACT)Holding in House – will be in pieces not a comprehensive bill – created a

link for success of border security to path to residency/not citizenship – higher ed community is supporting for the DREAM Act, modernization of the green

card process for advanced degree graduates and modernization of non-immigrant visas

Mores success for Dream Act like provisions at the state levels – 17 states have passed provisions allowing for undocumented students to receive in-state tuition – TN just pulled the proposal from consideration. 17 states: California, Colorado, Connecticut, Illinois, Kansas, Maryland, Minnesota, Nebraska, New Mexico, New Jersey, New York, Oregon, Texas, Utah, and Washington. Two states—Oklahoma and Rhode Island— allow in-state tuition rates to undocumented students through Board of Regents decisions.

LEGISLATIVE ISSUES Tax Issues Impacting Higher Education

Presidents Proposals –

Permanently extend the American Opportunity Tax Credit.

Eliminate taxability of loan amounts forgiven under Income-Based and Income- Contingent repayment programs.

Make Pell Grants excludable from taxable income, and better coordinate Pell Grant and AOTC.

Cap the tax value of certain itemized deductions, including the charitable deduction, for upper-income taxpayers.

LEGISLATIVE ISSUES House of Representatives Higher Education Tax Reform Proposals

Combine the various education-related tax breaks into one, making permanent the American Opportunity Tax Credit & making it more refundable (more accessible to low-income students) than the existing higher education credits. The credit would be available only for the first four years of college, excluding graduate education.

Repeal several tax breaks that help students and families, including the in-school interest deduction on student loans, the exemption for most student loan forgiveness programs, and the popular tax break that flows to employers who pay their employees' education expenses.

Make taxable any tuition waiver or remission that college employees (or their children) get from their own or other postsecondary institutions -- a popular benefit for those working in higher education, including graduate students.

Limit to $1,200 (in 2014) the amount of a student employee's earnings that are exempted from Social Security tax.

TAX PROPOSALS, CONT.

Continue to exempt from unrelated business income tax the income that universities derive from research -- but only if the research is made available to the public.

Require colleges and other nonprofit organizations to pay tax on royalties that they derive from the sale or licensing of their name or logo, which could have significant implications for college sports programs.

Include coaches among the higher education employees whose high salaries can trigger excise taxes for excessive compensation.

Eliminate the tax break that allows patrons who buy tickets for college athletic events (including five-figure seat licenses for the right to buy tickets) to deduct up to 80 percent of the cost of their tickets as a charitable gift.

LEGISLATIVE ISSUES Higher Education Reauthorization Timing

Hearings in House and Senate

Issues to Include:

College access, persistence and completion;

Better information for consumers;

Student loan programs;

Accreditation and appropriate oversight;

College affordability and cost reduction;

Innovation to benefit students;

Federal regulatory burden;

Special focus programs;

Transfer of Credits.

LEGISLATIVE ISSUES Department of Education Negotiated Rulemaking

Gainful Employment – 2nd round

ED measures repayment rates and evaluates programs based on debt-to-income ratios and cohort default rates. It cut a provision that immediately ended federal financial aid eligibility for a program with a cohort default rate of more than 40 percent. And it would affect even more programs than ED’s initial proposal.

Over 11,000 programs would fail under this proposal. As a consensus was not achieved by the negotiators at the close of last week’s session, ED will now unilaterally draft the final version of the regulations. Cohort default rates would be judged for any program with more than 30 students enrolled, and debt-to-income ratios would be judged for any program with more than 10 students. Of those programs, 13 percent, or 1,496, would fail - more than quadruple the number who failed the 2011 final rule.

Programs in imminent danger of failing would have to post a letter of credit or set aside a portion of financial aid funds for borrower relief.

LEGISLATIVE ISSUES VAWA – Campus SAVE Act sponsored by Senator Casey included

in Reauthorization 1992 to add a requirement that schools afford the victims of campus sexual assault

certain basic rights

1998 amended to expand the reporting requirements.

2000 and 2008 added provisions dealing with registered sex offender notification and campus emergency response.

2008 amendments also added a provision to protect crime victims, "whistleblowers", and others from retaliation.

Consortium nominated 3 individuals and two are on panel, Dr. Dennis Gregory, Dr. Lisa Erwin

Consortium submitted comments on the original proposal

March 31st and April 1st - last sessions

Proposed language

Opportunity to comment on final rule before issued

LEGISLATIVE ISSUES Rankings Scorecard/Presidents Plan on College Costs

Paying for PerformanceTie financial aid to college performance, starting with publishing new college ratings before the 2015 school year. Challenge states to fund public colleges based on performance. Hold students and colleges receiving student aid responsible for making progress toward a degree.

College Scorecard - rankings based on:Access, such as percentage of students receiving Pell grants;Affordability, such as average tuition, scholarships, and loan

debt; andOutcomes, such as graduation and transfer rates, graduate

earnings, and advanced degrees of college graduates.

LEGISLATIVE ISSUES$1B for Race to the Top for Higher Education

Incentives for creative solutions at the state level, state high school transition programs, etc.

Pell Bonus

Institutions that reflect accountability and results by enrolling and graduating low to moderate income students

Require student performance and accountability –

Required to complete a certain number of credits before funding is continued

LEGISLATIVE ISSUESPromoting Innovation and Competition

Challenge colleges to offer students a greater range of affordable, high-quality options than they do today.Give consumers clear, transparent information on college performance to help them make the decisions that work best for them.Encourage innovation by stripping away unnecessary regulations.

Award Credits based on learning not seat timeUse technology to redesign courses- MOOCsUse technology for student services-MOOCs for learning communities – Degree Compass ProgramAward dual enrollment HS/College Credits to expedite degree lengthReduce Regulatory Burdens – Pell grant options, distance ed barriers$260 M First in the World Program – Dept of Labor $500M grants to community colleges

LEGISLATIVE ISSUESEnsuring that Student Debt Remains Affordable

Help ensure borrowers can afford their federal student loan debt by allowing all borrowers to cap their payments at 10 percent of their monthly income.

Reach out to struggling borrowers to ensure that they are aware of the flexible options available to help them to repay their debt.

All Borrowers eligible for Pay as you learn - payments are capped at 10% of their monthly income

Borrowers Enrolled in Pay as you learn with Treasury

LEGISLATIVE ISSUES

MOOC – Massive Open Online Courses

Development of MOOCs – Coursera, Udacity, Institutions

Unmet need for higher education?

Inability for institutions to provide sufficient higher education?

Connectivity

Impacts – services provided, transfer of credits, for-profits,

Blending

Reauthorization

LEGISLATIVE ISSUES Globalization of Higher Education – impact on accountability/access

Access and Capacity challenges: Population Distribution: Migration, Mobility & Aging

Shifting patterns of production and consumption make the role of higher education in responding of employment alignment issues uncertain—what

kinds of workers does a society need?

Interdependence dynamics overwhelm national policy capabilities, in finance, migration, government revenues, and education

Developments of global system produce unintended consequences such as climate change, pollution, etc—which in turn affect curricular responsibilities.

Promotion of market solutions and autonomy has resulted in expansion of private HE markets often in situations of insufficient regulation, thus affecting quality.

Ten Globalization Challenges to Higher Education Quality and Quality AssuranceDeane Neubauer

LEGISLATIVE ISSUESEroding of traditional methods of knowledge and standards, consequences of teaching and student responsibilities

Notions of global competitiveness produce dynamics such as rankings, which are inherently reductionist

Instability and change within economic production systems produce instability within job systems, thereby aggravating the misalignment between higher education and job markets – every country with an industrial base is being forced to change and adapt quickly

Knowledge creation, knowledge transmission, and knowledge conservation. Part of the analysis of globalization’s impact on higher education is the challenge posed by other social institutions in the performance of these customary functions - the more subtle shift away from higher education’s role in cultural preservation and extension.

LEGISLATIVE ISSUES

The Move toward the “Athlete Student”Northwestern Case and implications

Regional Board of NLRB approved, school will appeal to National Board in DC

Decision applies to private schools only

Union rules vary from state to state impacting recruiting

Demands on student services from Athlete Unions

Impact on women’s sports, some big earning sports programs pay for other smaller programs on those campuses

Performance requirements? Firing?

SUPPORT IN FEDERAL/STATE RELATIONS

What will help you in your role?

What can your professional associations provide?

QUESTIONS?

Carol Graves Holladay

carolholladay@hurtnorton.com

202-543-9398

202-669-7039