Transcript COMMUNITY COLLEGE FEDERAL LEGISLATIVE OVERVIEW July 2015 Jee Hang Lee Vice President for Public Policy and External Relations Association of Community College Trustees.

COMMUNITY COLLEGE
FEDERAL LEGISLATIVE
OVERVIEW
July 2015
Jee Hang Lee
Vice President for Public Policy and External Relations
Association of Community College Trustees
FEDERAL LEGISLATIVE OVERVIEW
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Appropriations and Budget
Pell Grants
America’s College Promise
HEA Reauthorization
APPROPRIATIONS & BUDGET
 House and Senate passed a joint budget resolution in May.
 Overall funding for FY 2016 nondefense discretionary is
increased by $1 .1 billion.
 However, funding for the Labor, HHS, Education is decreased by
$3.7 billion.
 This reduction in funding has resulted in cuts in both the House
and Senate FY 2016 Labor, HHS, and Education appropriations
bills.
APPROPRIATIONS & BUDGET
HOUSE BILL
 The House bill dips into the Pell Grant surplus, cutting the
program by $370 million.
 Many other higher ed programs are level funded under the House
bill – SEOG, Work Study, CTE and Adult Ed state grants, WIOA
(adult, dislocated, youth).
 Title III and V programs see a small uptick, including Title III (A)
Strengthening Institutions.
 TRIO and Gear UP receive large increases - $60 million and $21
million.
 First in the World Grant eliminated
 Bill blocks Dept. of Ed from moving forward with regulations for
Gainful Employment, state authorizations, teacher preparation,
and defining credit hour
APPROPRIATIONS & BUDGET
SENATE BILL
 Senate bill makes numerous cuts including:
 $300 million rescission of Pell Grant funding for FY 2015 .
 $29 million cut to Supplemental Educational Opportunity Grants
 $40 million cut to Federal Work Study
 Over $130 million cut from WIOA (Adult, Dislocated, Youth) grants
 Adult Basic Education state grants are reduced by $29 million
 First in the World and Child Care Access Means Parents in School
are eliminated
 Funding for all programs supporting MSIs reduced by 3 percent
 CTE state grants, TRIO, and Gear Up are level funded
 Bill blocks Dept. of Ed from moving forward with regulations for
Gainful Employment, state authorizations, teacher preparation,
and defining credit hour
APPROPRIATIONS & BUDGET
 House and Senate passed their bills out of committee on party
line votes. Unlikely to see floor action.
 Senate Democrats plan to block all appropriations bill funded
under the current sequester caps.
 This may force negotiations or a deal on current budgetary
restrictions.
 Currently at a stalemate. Expect movement in the fall.
PELL GRANTS
 The automatic (CPI) increase in the maximum grant for AY
2015- 16 brought total to $5,775 – a $45 increase.
 The Pell Grant program had a surplus for FY 2015, and will
likely see a surplus again in FY 2016 and 2017.
 Cuts to the surplus could certainly impact future projections
 The Pell Grant program is still slated for a cumulative
shortfall of $31 billion between FY 2018 and 2025.
However, that projection has shrunk from previous years.
 In comparison the 2013 and 2014 baselines showed a $56
billion and $38 billion shortfall, respectively.
PELL GRANTS
 Federal student aid eligibility was restored for ‘Ability to
Benefit’ students enrolled in career pathway programs who
successfully pass an exam or 6 credit hours.
 Award levels differ based on a student’s enrollment date, with
new students enrolled after July 1 st eligible for a maximum of
only $4,860.
 ED has issued guidance on ATB.
 Proposals to reinstate Year -Round Pell gaining traction.
 Automatic CPI increases to the program run out after 2017.
AMERICA’S COLLEGE PROMISE
 Senator Tammy Baldwin (D -WI) and Congressman Bobby Scott (D -VA)
introduced legislation in July.
 $80 billion federal-state par tner ship grant to provide free tuition
and fees to qualified students.
 “First dollar” program; includes state Maintenance of Ef for t
 State and Institutional Role:
 The federal government would fund approximately ¾ of the national average cost (approximately $3,800) of community college. States
would be responsible for the remaining amount.
 States must detail how they are implementing innovative funding
models.
 Community colleges must implement innovative practices and
evidence-based reforms to improve student success.
 States would also be required to increase coordination among high
schools, community colleges, and 4-year public institutions.
AMERICA’S COLLEGE PROMISE
 Student Qualifications:
 Available to first-time students who attend at least half-time and
maintain at least a 2.0 GPA.
 Can only receive assistance for up to 3 years.
 Must be enrolled in a qualified program:
 Academic programs would have to offer credits that are fully
transferable to 4-year public institutions.
 Occupational training programs must have high completion rates,
and lead to a degree or certificate in a high-demand field.
HEA REAUTHORIZATION
 The Higher Education Act (HEA) was last reauthorized in 2008 .
 Reauthorization will focus on a number of issues, which may
include:
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Simplification of federal student aid
Student debt
Accreditation
Data & transparency
Consumer information
Risk sharing & requirements for all colleges to lend
Program integrity & accountability
Innovative learning models
HEA REAUTHORIZATION
 Community college priorities for reauthorization include :
 Pell: Maintain maximum grant without limiting eligibility; fully
reinstate Ability-to-Benefit & Year Round Pell; Revise semester
limit from 12 to 14.
 Federal Student Loans Limit student borrowing; adjust the
aggregate cap based on degree type and enrollment intensity;
consolidate loan repayment options; replace cohort default rate
with a Student Default Risk Index; simplify FAFSA.
 Affordability & Completion: Create state maintenance of effort
provision; dual enrollment; promote articulation agreements.
 Consumer Information & Accountability: Establish more accurate
measures of student success, including transfers; implement a
Federal student unit record system linked to wage data.
Thank You