Latest Action in Washington
Latest Action in Washington
Today, the House of Representatives passed the first part of the Senate Jobs bill by a 217-201 vote. Prior to passing the bill, the House Democrats changed the effective date of a provision to provide about $2 billion to cover the cost of the bill. Since the House changed the bill, the Senate will have to consider and pass the bill again. If the Senate passes the bill, it will be sent to President Obama for his signature. Meanwhile, the Senate continues to work on passing the second part of the Senate Jobs bill. The Senate is considering amendments to the bill with the goal of final passage sometime next week.
In other news, the White House has called on Congress to pass health-care reform legislation by March 18th. At this time, it appears that Congress will utilize the budget-reconciliation process to pass portions of health-care reform. This is significant because Congress had also considered using the reconciliation process to pass H.R. 3221, the Student Aid and Fiscal Responsibility Act (SAFRA); however, the reconciliation process can only be used once per year. SAFRA has been on hold while health-care reform legislation worked its way through Congress. SAFRA would eliminate the Federal Family Education Loan Program and all new federal student loans would be Direct Loans. Most importantly, SAFRA contains the American Graduation Initiative (AGI) which provides almost $10 billion for community colleges. There is an expectation that the Senate’s version of SAFRA will likely contain less funds for AGI because the increased funds necessary to cover the rise in the number of Pell Grant recipients. If the Senate decides to move to accommodate the March 18th timeframe, the Senate Health, Education, Labor and Pensions Committee will need to introduce and pass their version of SAFRA soon.
The first part of the Senate’s Jobs bill includes:
1) Payroll Tax Exemption: offers an exemption from social security payroll taxes for every worker hired in 2010 that has been unemployed for at least 60 days. There would also be an additional $1,000 income-tax credit for every new employee retained for 52 weeks, to be taken on the employer’s 2011 income tax return. ($13 billion)
2) Section 179 Expensing: helps small businesses grow by allowing them to write off more of their expenditures.
3) Highway Trust Fund Extension: extends existing highway programs, which provides states and localities with the certainty they need to make decisions on projects.
4) Expansion of Build America Bonds: allows state and local governments to borrow at lower costs to finance more infrastructure projects and put people to work. ($2 billion)
The second part of the Senate’s Jobs bill provides unemployment insurance and COBRA health benefits from February 28, 2010 - December 31, 2010. The total package costs $150 billion. Additionally, the bill extends a number of tax credits that have expired, including the qualified tuition deduction, research and development credit, increased funding for state Medicaid programs, and a number of credits aimed at small businesses. This bill does not include funding for an “Education Jobs Fund.”
To view the press release, go to: http://finance.senate.gov/press/Bpress/2010press/prb030110b.pdf
Senate Jobs Bill Part 2 Introduced; President Obama Visits Savannah Technical College
March 2, 2010 — Yesterday, Senator Max Baucus (D-MT) and Majority Leader Harry Reid (D-NV) introduced the second phase of the Senate’s Job Agenda. The introduced bill, known as the American Workers, State and Business Relief Act, would be a substitute amendment to H.R. 4213, the Tax Extenders Act of 2009. The bill provides unemployment insurance and COBRA health benefits from February 28, 2010 - December 31, 2010. The total package costs $150 billion. Additionally, the bill extends a number of tax credits that have expired, including the qualified tuition deduction, research and development credit, increased funding for state Medicaid programs, and a number of credits aimed at small businesses. This bill does not include funding for an “Education Jobs Fund.”
To view the press release, go to: http://finance.senate.gov/press/Bpress/2010press/prb030110b.pdf
At present, it is unclear how the Senate will proceed with this bill. The Senate is currently working to consider extending unemployment insurance for one month, but the Senate cannot finalize action because of a procedural objection. Meanwhile, the House Democratic leaders are working to gather support to pass the first part of the Senate Jobs bill. Speaker Nancy Pelosi (D-CA) is trying to gather support for the Senate Jobs bill. The House leadership expects to consider the Senate Jobs bill sometime this week.
In other news, President Barack Obama visited Savannah Technical College in Georgia today as part his “Main Street Tour.” The President spoke to students of the Savannah YouthBuild program, which puts at-risk youth through a combined GED/construction program, as part of his continuing effort to vocalize his support for community and technical college-based workforce training programs. During the visit, he announced a newly proposed program designed to provide incentives for homeowners to retrofit their homes in a more energy-efficient manner. The Home Star program, which was first outlined in the president's State of the Union address, would provide rebates to homeowners of up to $3,000 for making energy efficient improvements to their houses. Customers would be eligible for direct rebates at the point of sale, according to the White House.
"This is a commonsense approach that will help jump start job creation while making our economy stronger," the President said. "It's what's right to plan for our future." The President has also visited Lehigh Carbon Community College in Pennsylvania and Lorain County Community College in Ohio as part of the tour.
Additionally, the White House is hosting a discussion on the Student Aid and Fiscal Responsibility Act (SAFRA) with White House Domestic Policy Director Melody Barnes and Secretary of Education Arne Duncan.
For more information, go to: http://www.whitehouse.gov/blog/2010/03/02/reforming-student-loans-paving-road-opportunity
Secretary Duncan Testifies on Education Budget Request
February 25, 2010 — Today, Secretary of Education Arne Duncan testified before the House Budget Committee to outline the Department’s budget for FY 2011. The budget outlines $10.6 billion for the American Graduation Initiative. Secretary Duncan’s testimony can be found here: http://budget.house.gov/hearings/2010/02.25.2010_Duncan_Testimony.pdf
The Department of Education’s budget information can be found here: http://www2.ed.gov/about/overview/budget/budget11/summary/edlite-section1.html
Yesterday, the Senate Health, Education, Labor and Pensions Committee held a hearing on “A Stronger Workforce Investment System for a Stronger Economy.” Most notably, Chairman Tom Harkin (D-IA) stated that Congress would pass the reauthorization of the Workforce Investment Act (WIA) this year. Dr. Robert Templin, Jr., President of Northern Virginia Community College testified on behalf of community colleges and outlined the priorities of AACC and ACCT on WIA reauthorization.
The WIA priorities and background information can be found here: http://www.acct.org/advocacy/priorities/
To view the hearing, click here:
http://help.senate.gov/hearings/hearing/?id=99586896-5056-9502-5d82-cabe2d595170
On the Jobs legislation front, House Congressional leaders are now working to bring the Senate Jobs legislation to the House floor for consideration.
In other news, the White House earlier this week announced President Barack Obama’s intention to nominate Dr. Eduardo M. Ochoa as Assistant Secretary for Postsecondary Education, Department of Education. Dr. Ochoa is the Provost and Vice President for Academic Affairs at Sonoma State University. He is responsible for the University’s academic programs, strategic planning, and overall diversity initiative.
Senate Invokes Cloture on Jobs Legislation
February 23, 2010 — On Monday, the Senate invoked cloture (end debate or limit time for bill consideration) by a 62-30 vote on the Senate Jobs legislation introduced by Senate Majority Leader Harry Reid (D-NV). The Senate Jobs legislation would provide $15 billion in tax cuts, with the bulk of the funding intended to help employers hire new employees. The Senate is now expected to consider and pass its bill sometime this week. The legislation includes:
1) Payroll Tax Exemption: offers an exemption from social security payroll taxes for every worker hired in 2010 who has been unemployed for at least 60 days. There would also be an additional $1,000 income tax credit for every new employee retained for 52 weeks to be taken on the employer’s 2011 income tax return. ($13 billion)
2) Section 179 Expensing: helps small businesses grow by allowing them to write off more of their expenditures.
3) Highway Trust Fund Extension: extends existing highway programs, which provides states and localities with the certainty they need to make decisions on projects.
4) Expansion of Build America Bonds: allows state and local governments to borrow at lower costs to finance more infrastructure projects and put people to work. ($2 billion)
The Senate bill differs greatly from the House Jobs bill (see below) and it is unclear how they will proceed to conference a final bill. Majority Leader Reid did announce that he would introduce bills to cover a wide range of provisions that were included in the House bill.
Last year, the House of Representatives passed the “Jobs for Main Street Act of 2010” by a 217-212 vote. The act provides $154 billion for a number of programs. Most importantly, $23 billion will be available to states as part of an “Education Jobs Fund” over the next two years. 95% of the funds will be allocated by states to school districts and public institutions of higher education to retain or create jobs that provide educational services and to modernize, renovate, and repair public education facilities.
The bill provides $750 million in competitive grants to train workers for jobs in high-growth fields. The bill also provides $300 million for the Federal Work Study Program.
The summary of the bill can be found here: http://appropriations.house.gov/pdf/Jobs_for_Main_Street_Act_of_2010_Summary.pdf.
The bill can be found here: http://appropriations.house.gov/pdf/2010_Jobs_For_Main_Street_Bill_Text.pdf.
Senate Jobs Bill Update
February 12, 2010—Last week, the Senate Democratic leadership introduced a Jobs Bill Agenda (which can be read at http://democrats.senate.gov/newsroom/record.cfm?id=322107&) that covers a number of areas, including funds for states to shore up funding for education.
The Senate leadership indicated that the Senate will move individual bills that cover a number of areas as opposed to a single jobs bill such as the one passed by the House. Yesterday, Majority Leader Harry Reid (D-NV) introduced the first part of a series of bills. The introduced bill would provide $15 billion in tax cuts, with the bulk of the funding intended to help employers hire new employees. With the Congressional recess approaching next week, it is unclear when the Senate will move this bill and other bills that cover parts of the Jobs Bill Agenda. The bill can be viewed at: http://thomas.loc.gov/cgi-bin/query/C?r111:./temp/~r111kLYGMn
Last year, the House of Representatives passed the “Jobs for Main Street Act of 2010" by a 217-212 vote. The act provides $154 billion for a number of programs. Most importantly, $23 billion will be available to states as part of an “Education Jobs Fund” over the next two years. 95% of the funds will be allocated by states to school districts and public institutions of higher education to retain or create jobs that provide educational services and to modernize, renovate, and repair public education facilities.
The bill provides $750 million in competitive grants to train workers for jobs in high-growth fields. The bill also provides $300 million for the Federal Work Study Program.
The summary of the bill can be found here: http://appropriations.house.gov/pdf/Jobs_for_Main_Street_Act_of_2010_Summary.pdf.
Obama Administration Releases FY2011 Budget
February 1, 2010 — Today, President Barack Obama formally released his FY2011 Budget Request. The budget request is a formal submission to Congress. The President’s budget provides $49.7 billion (7.5% increase over the FY2010 budget request) for the Department of Education, but this figure does not include the Pell Grant program. The Administration is seeking to move the Pell Grant into the mandatory side of the federal budget. If this switch was to occur, the Pell Grant program would not be subject to the annual discretionary appropriations process. The total budget request for Pell is $34.9 billion and would provide for a $5,710 Pell Grant maximum. It is estimated that there is a $18 billion Pell Grant shortfall.
The Department of Education FY2011 budget request also includes “$10.6 billion over 10 years for the President's American Graduation Initiative, to strengthen and support community colleges, focus on college completion, and graduate 5 million more students by 2020.” The House passed version of H.R. 3221, “Student Aid and Fiscal Responsibility Act,” provides $9.5 billion for AGI. The AGI funding amount is expected to increase in the Senate bill, which still has not been released.
Below are some other key other funding areas:
Carl Perkins Career and Technical Education State Grants: $1.26 billion, an increase of $103 million (the increase comes from the consolidation of Tech-Prep)
Tech-Prep State Grants: $0, a decrease of $103 million
Strengthening Institutions: $88.2 million, an increase of $4.2 million
Hispanic Serving Institutions: $123.3 million, an increase of $6 million
Predominantly Black Institutions: $11.3 million, an increase of $500 thousand
College Pathways and Accelerated Learning: $100 million (a new program, focused on early college initiatives and Advanced Placement/International Baccalaureate)
Work-study: $980.5 million, level funding
Supplemental Educational Opportunity Grants: $958.8 million, level funding
The Department of Education’s information can be found here: http://www2.ed.gov/about/overview/budget/budget11/summary/edlite-section1.html
Meanwhile, the Department of Labor also released its budget request, which includes $14 billion for its programs. Unfortunately, the Career Pathways program is slated to be consolidated because the Department believes that many of the programs would be eligible for funding under the American Graduation Initiative. The Department would provide $85 million for a program focused on Green Jobs and $261 million for two new innovation funds for job training. Additionally, language was inserted in the request for the Workforce Investment Act to allow local workforce boards to award contracts to institutions of higher education or other eligible training providers.
The Department of Labor’s information can be found here: http://www.dol.gov/budget/
Education Proposals to be Part of the State of the Union Address
January 27, 2010—Today, President Barack Obama will be giving his first State of Union address to the Joint Session of Congress. According to the White House, President Obama is expected to push for additional education dollars for higher education and K-12. The Administration is requesting that the Department of Education’s funding level grow by 6%. The President will likely press Congress to pass the FY2010 Education Reconciliation and the American Graduation Initiative. The Administration’s formal budget request will be released on Monday, February 1.
As for the jobs bill, Senate Democratic leaders are coalescing around a proposal that would provide over $80 billion for infrastructure, energy, and state aid. The House passed its $154 billion jobs bill in December. The Senate Democratic leaders may unveil their bill as early as tomorrow.
In other news, the Center for American Progress held an event on “Community Colleges and Competitiveness: Generating Economic Opportunity Through Innovation in Postsecondary Education” this morning in Washington, D.C. The event was keynoted by Second Lady Dr. Jill Biden, a professor at Northern Virginia Community College. Assistant Secretary of the Office of Vocational and Adult Education Brenda Dann Messier also keynoted the event.
The event had a number of other speakers including Gail Mellow, President of LaGuardia Community College and Keith Bird, Chancellor Emeritus of Kentucky Community and Technical College System. More information can be found at: http://www.americanprogress.org/events/2010/01/commcoll.html. The video for the event should be available online shortly.
AGI Waits for Health Care to be Completed; NLS Speakers Announced