Latest Action in Washington 2009 Archive

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House Passes Jobs Bill

December 17, 2009 - Yesterday, 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 College 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.

The Senate will not take up the Jobs bill legislation before their holiday recess. Additionally, it is unclear whether the Senate bill will be similar to the House’s bill.

ACCT continues to work on gathering co-sponsors for H.R. 4196, the Community College Emergency Stabilization Fund Act, sponsored by Reps. John Larson (D-CT) and Rubén Hinojosa (D-TX). Currently, the bill has 31 co-sponsors. Rep. Larson is still working to attach the bill as part of a larger legislative vehicle. Adding more co-sponsors will facilitate the process.

Meanwhile, Congress has passed its Omnibus Appropriations bill, which includes the Labor, Health and Human Services and Education appropriations bill. President Obama’s signed the bill into law yesterday. A summary can be viewed at: http://appropriations.house.gov/pdf/FY10_LHHS_Conference_Summary.pdf

President Obama's Speech on Job Creation; Congress Finalizes Funding Bill

December 9, 2009 - Yesterday, President Barack Obama gave a speech at the Brookings Institute outlining his goals for a prospective job creation bill. The speech outlined three key areas: 1) Helping small businesses expand investment, hire workers and access credit; 2) Investing in America’s roads, bridges and infrastructure; and 3) Creating jobs through energy efficiency and clean-energy investments.

The White House fact sheet on these goals can be found here: http://www.whitehouse.gov/the-press-office/president-obama-announces-proposals-accelerate-job-growth-and-lay-foundation-robust.

President Obama’s speech can be viewed here: http://www.brookings.edu/events/2009/1208_jobs_obama.aspx.

Congress is beginning to work on a jobs package, but it is unclear whether Congress will be able to move a bill prior to adjourning for the holidays. House Democratic leaders have indicated that they have a strong desire to introduce a bill prior to adjournment. ACCT is working to gather co-sponsors for H.R. 4196, the Community College Emergency Stabilization Fund Act, sponsored by Reps. John Larson (D-CT) and Rubén Hinojosa (D-TX). The bill currently has 12 additional co-sponsors.

In other news, House and Senate Appropriations leaders announced that they had agreed to a nearly $450 billion omnibus appropriations bill that will include 5 appropriations bills, including $163.6 billion for the Labor, Health and Human Services and Education appropriations bill. The bill provides for a $5,550 Pell Grant maximum. Additionally, other funding levels include: 1) $125 million for the Career Pathways Innovation Fund (formerly Community-Based Job Training Grant program); 2) $603 million for minority-serving institutions; and 3) $40 million for a green jobs program. A summary can be viewed at: http://appropriations.house.gov/pdf/FY10_LHHS_Conference_Summary.pdf.

The passage of the omnibus appropriations bill will result in one remaining appropriations bill, for defense appropriations. Congress is working to pass these bills soon because the current continuing resolution, which is funding the federal government, expires on December 18th. Congress may use the defense appropriations bill as the vehicle to move any jobs bill.

Reps. Larson and Hinojosa Introduce H.R. 4196, Community College Emergency Stabilization Fund Act

December 7, 2009 - Last Friday, Reps. John Larson (D-CT) and Ruben Hinojosa (D-TX) introduced H.R. 4196, the Community College Emergency Stabilization Fund Act. The bill provides a one-time allocation of $700 million to states which in turn will provide grants to community colleges. H.R. 4196 provides critical funds to community colleges as they work to meet the wave of students entering community colleges. The bill’s sponsors are concerned about the perfect storm (higher enrollment and less funding) occurring on community college campuses. Therefore, bill provides critical funds to colleges to deal with staffing and faculty shortages to meet the rising enrollments. Colleges will be able to use funds to cover costs related to maintaining, or hiring additional faculty and staff, counselors or others. Additionally, the bill provides $50 million for a federal competitive grant program targeted to career and technical colleges.

Reps. Larson and Hinojosa are currently working to gather co-sponsors to their bill. The goal is to have the bill attached as part of any jobs package that Congress may move in the coming months. ACCT urges its members to reach out their Congressional members in support of H.R. 4196. The bill can be viewed at http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.4196:.

Senate Education Reconciliation Bill Still on Hold

November 20, 2009 - This weekend, the Senate is expected to conduct a key procedural vote, as Senate Majority Leader Harry Reid (D-NV) filed for cloture to begin consideration of the Senate health care reform bill. If the Senate is able to get the 60 necessary votes, it will begin consideration of the Senate health care legislation. Additionally, Senate Majority Leader Reid noted yesterday that the Senate will not use the reconciliation process for health care. It is unclear what other procedural alternatives would remain for health care if the Senate does not get cloture on the bill.

Congress is still on track to utilize the reconciliation process for education, but the Senate is still waiting for action to be determined on health care before it considers the education reconciliation bill. The Senate’s education reconciliation bill is expected to contain the American Graduation Initiative (AGI). ACCT is hopeful that the Senate will provide greater funding for the American Graduation Initiative than the House bill provided.

Meanwhile, Rep. John Kline (R-MN), Ranking Member of the House Education and Labor Committee, and Sen. Mike Enzi (R-WY), Ranking Member of the Senate Health, Education, Labor and Pensions Committee, introduced legislation to extend the Ensuring Continued Access to Student Loans Act (ECASLA). ECASLA was passed in 2008 and helped stabilize the student loan market by allowing the Department of Education to purchase Federal Family Education Loans (FFEL). The Administration and the Education Committee Chairmen have signaled that they will not seek to extend ECASLA because the proposed conversion of the FFEL to the Direct Loan program will make the extension unnecessary.

Congress Passes Another Continuing Resolution

October 30, 2009 - Yesterday, Congress passed H.R. 2996, the FY2010 Interior, Environment, and Related Agencies Appropriations bill, which also included a continuing resolution to keep the federal government programs running through December 18. The previous continuing resolution would have expired at the end of the month. The House vote was 247-178 and the Senate vote was 72-28. The President is expected to sign the bill soon.

Congress still needs to pass the seven remaining appropriations bills. Congress will likely move a large omnibus appropriations bill that will contain the remaining bills.

Department Names Frank Chong as Deputy Assistant Secretary for Community Colleges

October 22, 2009 - The US Department of Education is confirming that they have appointed Dr. Frank Chong to serve as the Deputy Assistant Secretary for Community Colleges in the Office of Vocational and Adult Education. Dr. Chong is the President of Laney College within the Peralta Community College District, since July 2006. Prior to coming to Laney, Dr. Chong served as president and chief executive officer of Mission Community College, located in Santa Clara, and formerly served as the Dean of Student Affairs at City College of San Francisco. From 1987-1991, Chong was special assistant to the Speaker of the California State Assembly, Willie L. Brown, Jr. The Deputy Assistant Secretary position does not require Senate confirmation.

Senate HELP Committee Waits on Health Care

October 19, 2009—ACCT continues to wait for the Senate Health, Education, Labor and Pensions (HELP) Committee to release its version of the education reconciliation bill. HELP Committee staff have indicated that the bill will be released when the Senate health care debate clears up. If the Senate leaders are unable to gather 60 votes in support of a comprehensive health care bill, the Senate will use the budget reconciliation process to pass the bill. The education reconciliation bill is expected to contain the American Graduation Initiative (AGI). ACCT is hopeful that the Senate will provide greater funding for AGI than the House bill provided.

Earlier this month, the Senate confirmed Brenda Dann-Messier to be Assistant Secretary for the Office of Vocational and Adult Education (OVAE) at the Department of Education. Dann-Messier served as president of Dorcas Place, an Adult and Family Learning Center in Providence, R.I. Prior to her work at Dorcas Place, Dann-Messier worked at the Northeast and Islands Regional Educational Laboratory at Brown University. Dann-Messier joins Glenn Cummings, Deputy Assistant Secretary of OVAE. The Department of Education has not yet appointed a Deputy Assistant Secretary for Community Colleges within OVAE.

Congress Passes Continuing Resolution

October 1, 2009—With the federal fiscal year coming to the end on September 30, Congress moved to pass a Continuing Resolution, which will keep the government running until Congress passes the remaining FY2010 appropriations bills. President Barack Obama signed the bill, which also includes the Legislative Branch appropriations bill, into law. The Continuing Resolution funds the federal programs at FY2009 levels.

ACCT continues to wait for the Senate Health, Education, Labor and Pensions (HELP) Committee to release its version of the education reconciliation bill. HELP Committee staff have indicated that the bill should be available within the next two weeks. Most importantly for community colleges, the bill is expected to contain the American Graduation Initiative. Senate leaders are waiting for the health care legislative process to unfold before deciding when to carry out the education-reconciliation process.

In other news, Secretary of Education Arne Duncan penned an editorial, “Moving College into the 21st Century,” which the noted the importance of the American Graduation Initiative. The editorial can be viewed at: http://www.politico.com/news/stories/0909/27762.html.

President Obama and Dr. Biden Visit Hudson Valley Community College, Urge Congress to Pass AGI

September 21, 2009 — Today, President Barack Obama along with Dr. Jill Biden visited Hudson Valley Community College (HVCC) in New York and toured its technology classrooms. While at HVCC, President Obama publicly renewed his call on Congress to pass the American Graduation Initiative and outlined the Administration’s goal to improve innovation. President Obama noted the importance of institutions like HVCC to prepare students for 21st-century jobs and to prepare America for a 21st-century global economy. President Obama’s speech can be found here: http://www.whitehouse.gov/the_press_office/Remarks-by-the-President-on-Innovation-and-Sustainable-Growth-at-Hudson-Valley-Community-College/.

In other major news, the Senate Health, Education, Labor and Pensions (HELP) Committee is expected to release its version of the education reconciliation bill later this week. The HELP Committee will likely consider the bill next week. While the final details of the bill are unclear, the HELP Committee bill is expected to differ in a number of areas from the bill recently passed by the House, H.R. 3221. Most importantly for community colleges, the bill is expected to contain the American Graduation Initiative.

House Passes H.R. 3221

September 17, 2009 — Today, the House of Representatives passed H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, by a 253-171 vote. H.R. 3221 represents the largest single federal investment in community colleges in history, totaling $9.5 billion. The bill authorizes President Barack Obama’s American Graduation Initiative which provides funding for community college academic, developmental and job-training programs and community college modernization and construction. The bill also provides $40 billion to increase the Pell Grant maximum over the next ten years.

During the debate on H.R. 3221, the House defeated two efforts to eliminate funding for community colleges. The House defeated an amendment by Rep. Peter Hoekstra (R-MI), which would have eliminated funds for community college modernization, by a 161-262 vote. The House also defeated an amendment by Rep. Virginia Foxx (R-NC), which would have eliminated the American Graduation Initiative and its funding, by a 126-301 vote. The roll call votes on the bill and the amendments can be found at: http://clerk.house.gov/evs/2009/index.asp. ACCT would like to thank all the community college leaders who took the time to write or call their representatives in support of H.R. 3121.

The Senate is expected to introduce and consider its own version of the education budget reconciliation within the next four weeks. The Senate Health, Education, Labor and Pensions Committee will need to report out the legislation by October 15th.

In other news, President Obama is expected to visit Hudson Valley Community College in New York on September 21st.

ACCT’s H.R. 3221 summary of community college related items within the bill can be found at: http://www.acct.org/HR3221-Summary.pdf. For more information, contact Jee Hang Lee at jhlee@acct.org or (202) 775-4450.

Congress Returns and Senator Tom Harkin Takes Gavel of Senate Health, Education, Labor and Pensions Committee

September 10, 2009 - With Congress returning this week, the House and Senate have a full slate of activities to address in the coming weeks and months. Congress is expected to consider a number of bills that cover the appropriations process, as well as the education budget reconciliation bill, which will contain President Obama’s American Graduation Initiative. The House is expected to consider H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, this month. ACCT’s H.R. 3221 summary can be found at:
http://www.acct.org/HR3221-Summary.pdf.

Meanwhile, with the passing of Senator Edward Kennedy (D-MA), Senator Tom Harkin (D-IA) has taken over the chairmanship of the Senate Health, Education, Labor and Pensions (HELP) Committee. Senator Harkin is a strong supporter of community colleges and led the effort during the stimulus debate to ensure that community colleges received their fair share of infrastructure funds. The HELP Committee is expected to release its version of the education budget reconciliation later this month and is looking to pass the bill in early October.

HR 3221 Summary and Senate Committee Passes Education Funding Bill

August 7, 2009 - With Congress entering the August recess period, ACCT is providing community college supporters with a summary of H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009. With House and Senate action on H.R. 3221 slated for September, the congressional recess period provides a perfect opportunity to discuss and express your support for the historic focus and funding in the American Graduation Initiative with your Congressional members. ACCT has formally endorsed this bill with a letter that can be found at www.acct.org/advocacy/letters. If you have any questions about the bill, please contact ACCT’s public policy office at publicpolicy@acct.org.

Additionally, last week, the Senate Appropriations Committee passed its version of the FY2010 Labor, Health and Human Services and Education spending bill at $163.1 billion by a vote of 29-1. The Senate Subcommittee bill is $2.4 billion more than the House bill and $7.6 billion over last year’s funding level and more than what President Obama requested. The bill maintains the maximum Pell Grant at $4,860; combined with the mandatory funding of $690 for the Pell Grant program, this equals a $5,550 maximum.

The H.R. 3221 summary is available on ACCT.org at:
http://www.acct.org/HR3221-Summary.pdf

For more information, visit:
http://appropriations.senate.gov/

Senate Subcommittee Passes Education Funding Bill

July 29, 2009 - Yesterday, the Senate Appropriations Subcommittee on Labor, Health and Human Services and Education passed by voice vote its FY2010 Labor, Health and Human Services and Education spending bill at $163.1 billion. The Senate Subcommittee bill is $2.4 billion more than the House bill. The Senate Appropriations Committee is expected to consider the bill later this week, but Senate floor consideration is unlikely until September. The Senate bill is $7.6 billion over last year’s funding level and more than what President Obama requested.

The bill maintains the maximum Pell Grant at $4,860; combined with the mandatory funding of $690 for the Pell Grant program, this equals a $5,550 maximum. The Subcommittee has not disclosed all of the funding levels within the bill, but will release the funding numbers during the full committee’s consideration.

For more information, visit: http://appropriations.senate.gov.

In other significant news, the House will not consider H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, before they adjourn for the August Congressional recess. The House will likely consider the bill in early September.

House Committee Passes Student Aid and Fiscal Responsibility Act of 2009

July 21, 2009 — Today, the House Education and Labor Committee led by Chairman George Miller (D-CA) passed H.R. 3221, the “Student Aid and Fiscal Responsibility Act of 2009,” by a 30-17 vote. The bill eliminates the Federal Family Education Loan Program and originates all new federal student loans through the Direct Loan Program starting in 2010. In total, this conversion generates $87 billion in savings. While there were a number of amendments offered and debated, the intent of the bill and the funding levels for Pell Grants, community college modernization and President Obama’s American Graduation Initiative (no significant changes to the community college programs) were left unchanged.

The bill provides significant funding increases in two key areas:

• Investing $40 billion to increase the annual Pell Grant maximum to $5,550 in 2010 and to $6,900 by 2019. Starting in 2010, the maximum will be linked to match rising costs-of-living by indexing it to the Consumer Price Index plus 1 percent; and
• Providing $9.5 billion for President Obama’s American Graduation Initiative, with $2.5 billion in FY2011 for community college infrastructure and $7 billion (over ten years) for competitive grants to community colleges and states. The funding is broken down to three distinct programs:
1) $2.5 billion in FY2011 for grants to community colleges to modernize, renovate, and repair their facilities.
2) $6.3 billion over ten years for community college and state competitive grants. The first four years are geared towards community colleges and states. The remaining six years are targeted towards states. Prior to the markup, ACCT worked to include language within the state grant program stipulating that no less than 90% of funds to states be allocated to community colleges.
3) $700 million for competitive grants for national activities, including grants to develop free online training and courses.

Additionally, the funds other programs including;
• Providing $3 billion to bolster college access and completion support programs for students;
• Strengthening the Perkins Loan Program;
• Keeping interest rates low on need-based - or subsidized - federal student loans by making the interest rates on these loans variable beginning in 2012. These interest rates are currently set to jump from 3.4 percent to 6.8 percent in 2012;
• Simplifying the FAFSA form;
• Providing $2.5 billion for Historically Black Colleges and Universities and Minority-Serving Institutions;
• Providing $8 billion for Early Learning Programs; and
• Providing $10 billion to pay down the federal deficit.

With the Committee process complete, the bill has been referred to the House Budget Committee. There is some discussion about bringing the bill to the floor next week. Meanwhile, the Senate is expected to consider its budget reconciliation bill in early September.

To see the letter of support for H.R. 3221 by ACCT and AACC, visit: http://www.acct.org/Final%20HR3221Support%20Letter.pdf

For more information visit: http://edlabor.house.gov/newsroom/2009/07/legislation-to-make-landmark-i.shtml

House Appropriations Committee Passes Education Funding Bill

July 20, 2009 - Last Friday, the House Appropriations Committee passed its version of the FY2010 Labor, Health and Human Services and Education spending bill at $160.7 billion by voice vote. With Committee passage, the bill now heads to the House floor for consideration. It is expected that the bill will be considered this week or next week. The bill is $5.2 billion over last year’s funding level, but $52 million less than what President Obama requested.

The bill maintains the maximum Pell Grant at $4,860; combined with the mandatory funding of $690 for the Pell Grant program, this equals a $5,550 maximum. Also, the Career and Technical Education programs are level funded at $1.2 billion.

The Committee provides $130 million for the new Career Pathways Innovation Fund (formerly called the Community-Based Job Training Grant program). The allocation for this program is $5 million more than the FY2009 total. It appears that the Departments of Labor and Education will have a role in running this program. The Committee requires that $65 million be used for nursing programs. Additionally, the Committee is providing $50 million to prepare workers for careers in emerging green industries.

The Senate Subcommittee is expected to consider its version of the bill in the next couple of weeks.

For more information, visit:
http://appropriations.house.gov/Subcommittees/sub_lhhse.shtml

Kanter and Oates Testify on Modernizing Workforce Investment Act

July 17, 2009 — Yesterday, the Senate Health, Education, Labor and Pensions Subcommittee on Employment and Workplace Safety held a hearing on “Modernizing the Workforce Investment Act (WIA) of 1998 to Help Workers and Employers Meet the Changing Demands of a Global Market.” Under Secretary of Education Martha Kanter and Assistant Secretary of Labor, Employment and Training Administration Jane Oates testified before the Subcommittee and represented the Obama Administration.

Under Secretary Kanter noted that “the Departments of Education and Labor have been meeting and discussing ways to align programs, leverage resources, and ensure that youth receive the services and support they need, whether in school, out of school, academic, job training, or social services, or a combination of all of these. We intend to reach out to other federal partners, including the Department of Health and Human Services, in these efforts.”

There will be a number of changes to WIA in the upcoming reauthorization. Senators and witnesses noted the important role of community colleges within the workforce system.

Under Secretary Kanter’s testimony can be found at: http://help.senate.gov/Hearings/2009_07_16/Kanter.pdf
Assistant Secretary Oates’s testimony can be found at: http://help.senate.gov/Hearings/2009_07_16/Oates.pdf

Additional witnesses included:

• Clyde McQueen, Director, Full Employment Council, Inc., Kansas City, MO
• Michael Thurmond, Commissioner, Georgia Department of Labor, Atlanta, GA
• Rick Bender, President, The Washington State Labor Council, AFL-CIO, Seattle, WA
• William Kiernan, Director, Institute for Community Inclusion, Boston, MA
• Mary Sarris, Executive Director, North Shore Workforce Investment Board, Salem, MA
• Kathy Cooper, Policy Associate, Office of Adult Literacy, Washington State Board for Community and Technical Colleges, Olympia, WA
• Stephen Wing, Director of Workforce Initiatives, CVS Caremark, Twinsburg, OH

Student Aid and Fiscal Responsibility Act of 2009 Details

July 16, 2009 — Yesterday, Chairman George Miller (D-CA) introduced H.R. 3221, “Student Aid and Fiscal Responsibility Act of 2009.” The eliminates the Federal Family Education Loan program and originates all new federal student loans through the Direct Loan program starting in 2010. In total, this conversion generates $87 billion in savings.

In turn, the bill provides significant funding increases for a number of programs, including:

• Investing $40 billion to increase the annual Pell Grant maximum to $5,550 in 2010 and to $6,900 by 2019. Starting in 2010, the maximum will be linked to match rising costs-of-living by indexing it to the Consumer Price Index plus 1 percent;
• Providing $9.5 billion for community colleges, with $2.5 billion in FY2011 for community college infrastructure and $7 billion (over ten years) for competitive grants to community colleges and states;
• Providing $3 billion to bolster college access and completion support programs for students;
• Strengthening the Perkins Loan program;
• Keeping interest rates low on need-based - or subsidized - federal student loans by making the interest rates on these loans variable beginning in 2012. These interest rates are currently set to jump from 3.4 percent to 6.8 percent in 2012;
• Simplifying the FAFSA form;
• Providing $1.2 billion for Historically Black Colleges and Universities and Minority-Serving Institutions;
• Providing $10 billion for Early Learning programs; and
• Providing $10 billion to pay down the federal deficit.

Most importantly for community colleges, the initiative is broken down to three distinct programs:

1) $2.5 billion in FY2011 for grants to community colleges to modernize, renovate, and repair their facilities.
2) $6.3 billion over ten years for the Community College Challenge Grant Program, which will provide competitive grants. The first four years are geared towards community colleges and states. The remaining six years are targeted towards states.
3) $700 million for competitive grants for national activities, including grants to develop free online training and courses.

ACCT is working with Chairman George Miller’s office to refine the legislation. The House Education and Labor Committee is expected to consider the bill next Tuesday. ACCT will provide updates as further information becomes available.

To see the full press release, visit: http://edlabor.house.gov/newsroom/2009/07/chairman-miller-introduces-leg.shtml

President Obama Announces Major Initiative for Community Colleges

July 14, 2009 - Today, President Barack Obama visited Macomb Community College in Warren, Michigan to make a “historic” announcement about community colleges. President Obama stated, “But today I'm announcing the most significant down payment yet on reaching the goal of having the highest college graduation rate of any nation in the world. We're going to achieve this in the next 10 years. And it's called the American Graduation Initiative. It will reform and strengthen community colleges like this one from coast to coast so they get the resources that students and schools need -- and the results workers and businesses demand. Through this plan, we seek to help an additional 5 million Americans earn degrees and certificates in the next decade. Not since the passage of the original GI Bill and the work of President Truman's Commission on Higher Education -- which helped to double the number of community colleges and increase by seven-fold enrollment in those colleges -- have we taken such a historic step on behalf of community colleges in America.”

The programs in the American Graduation Initiative are comprised of four programs. The funding as proposed by the Administration is $12 billion over ten years. According to the White House’s fact sheet, the initiative will create:
• The Community College Challenge Fund: The Challenge Fund, $9 billion over ten years, will provide competitive grants to community colleges and states to build partnerships, expand course offerings, improve remedial and adult education, to innovate and expand proven reforms, and provide support services.
• The College Access and Completion Fund: The Completion Fund will support efforts to increase college graduation rates and close achievement gaps, including those at community colleges. The College Access and Completion Fund was proposed in the President’s FY2010 budget request at $2.5 billion over five years.
• A Fund for Community College Facilities: President Obama is proposing a new $2.5 billion fund to catalyze $10 billion in community college facility investments that will expand the colleges’ ability to meet employer and student needs. The resources could be used to pay the interest on bonds or other debt, seed capital campaigns, or create state revolving loan funds.
• The New Online Skills Laboratory: This program funded at $500 million over ten years will support grants to create new open-access online courses. The Departments of Defense, Education, and Labor will work together to make the courses freely available through one or more community colleges and the Defense Department’s distributed learning network, explore ways to award academic credit based upon achievement rather than class hours, and rigorously evaluate the results.

The Administration is working with Congress to use the savings from the conversion of the Federal Family Loan Program to the Direct Loan program to support the American Graduation Initiative. The House of Representatives and the Senate are using the budget reconciliation process to pass this bill. The House Education and Labor Committee is tentatively scheduled to markup a bill next week, which is expected to deal with the conversion and provide legislative language for the Initiative. The Committee is expected to release its bill this week and ACCT will provide an update when we receive a draft of the bill.

To read the whole speech, visit: http://www.whitehouse.gov/the_press_office/Remarks-by-the-President-on-the-American-Graduation-Initiative-in-Warren-MI/

To read the White House’s fact sheet on the initiative, visit: http://www.whitehouse.gov/the_press_office/Excerpts-of-the-Presidents-remarks-in-Warren-Michigan-and-fact-sheet-on-the-American-Graduation-Initiative/

House Subcommittee Passes Education Spending Bill

July 10, 2009 - Today, the House Labor, Health and Human Services and Education Appropriations Subcommittee passed its version of the FY2010 spending bill at $160.7 billion. The Subcommittee is providing $5.2 billion over last year’s funding level, but $52 million less than what the President requested. While each programmatic funding level was not disclosed, the Subcommittee did provide funding levels for key programs.

The bill maintains the maximum Pell Grant at $4,860; combined with the mandatory funding of $690 for the Pell Grant program, this equals a $5,550 maximum. Also, the Career and Adult Education funding is slated at $2 billion, or $72 million over FY2009. It is unclear how these funds are distributed amongst the various programs.

The Subcommittee provided $135 million for the new Career Pathways Innovation Fund (formerly called the Community-Based Job Training Grant program). The allocation for this program is $10 million more than the FY2009 total. It appears that the Departments of Labor and Education will have a role in running this program. Additionally, the Subcommittee is providing $50 million to prepare workers for careers in emerging green industries.

The next step will be for the House Appropriations Committee to consider the bill next week, with the full House considering the bill later this month. The Senate Subcommittee is expected to consider its version of the bill in the next couple of weeks.

For more information, visit:
http://appropriations.house.gov/Subcommittees/sub_lhhse.shtml

Obama Administration Community College Initiative Details

June 26, 2009—As noted in an earlier ACCT LAW E-alert, the Obama Administration is currently working on a new community college initiative, which is “part of a series of efforts to help community colleges reach more students and to link basic skills education to job training,” according to Inside Higher Ed.

ACCT is consulting with the Administration as it develops plans to support community college-based job training programs, details of which likely will be released soon.

The following article from Inside Higher Ed highlights some aspects of a new Obama Administration initiative to develop free online courses; however, it is unclear at this time whether this project will be included among the final pieces of the new community college initiative.

U.S. Push for Free Online Courses by Scott Jaschik: http://www.insidehighered.com/news/2009/06/29/ccplan

ACCT will issue LAW E-Alerts are further details of the Administration’s community college initiative are released.

Obama Admin Makes FAFSA Change; Kanter and Oates Appointments Confirmed

June 24, 2009—The Obama Administration today announced a shorter, simpler, and more user friendly Free Application for Federal Student Aid (FAFSA) that will make it easier to apply for college financial aid. The changes—some of which are already in place while others will be phased in over the next few months—are designed to increase postsecondary enrollment, particularly among low- and middle-income students.

"President Obama has challenged the nation to once again have the highest percentage of college graduates in the world," said Arne Duncan, U.S. Secretary of Education. "To do that, we need to make the college-going process easier and more convenient, and to send a clear message to young people as well as adults that college is within their reach. Simplifying the financial aid process is an important step toward reaching that goal."

At his first White House press corps briefing, Secretary Duncan outlined the Administration's plan for streamlining the FAFSA.

The simplified FAFSA is one of several recent steps taken by the Obama Administration to improve access to higher education and make it more affordable.

"Simplifying the FAFSA is another significant action in our quest to keep a college degree within the reach of every person who aspires to higher education," Duncan said.

In other news, on Friday, June 19, the Senate confirmed the appointments of Martha J. Kanter to serve as U.S. Under Secretary of Education and Jane Oates to serve as Assistant Labor Secretary, Employment and Training Commission. Kanter is Chancellor of Foothill-De Anza Community College District. Oates worked closely with the New Jersey community colleges and the NJ Council of Community Colleges to implement a statewide articulation agreement.

For highlights of the Obama Administration's Agenda for College Affordability, go to http://www.ed.gov/news/pressreleases/2009/06/06242009.html.

More information on federal financial aid for college is available at http://studentaid.ed.gov.

Congressional Committees Outline Funding Allocations

June 19, 2009—Yesterday, the Senate Appropriations Committee approved its FY2010 302(b) allocations, which provide spending amounts that allow the Subcommittees to work on their respective funding bills. The Senate 302(b) allocation for Labor, HHS, and Education is $163.1 billion—almost $10 billion more than the FY2009 allocation.

Last week, the House Appropriations Committee passed by party-line vote, 34-21, its FY2010 302(b) allocations for Labor HHS, and Education is $160.1 billion—$7.5 billion more than FY2009.

The House Labor, HHS, and Education Appropriations Subcommittee is expected to introduce its bill in early July, while the Senate Subcommittee expects to introduce its bill in late July. Both Subcommittees intend to pass their respective bills prior to the Congressional August recess.

White House to Make 'Major Announcement' on Community Colleges

June 18, 2009--Yesterday, during the Democratic Leadership Conference policy forum, White House Chief of Staff Rahm Emanuel announced that in the coming weeks President Obama will make a major announcement on community colleges. Mr. Emanuel said that there will be a "rewriting of all legislation related to job training and vocational education, but most importantly in the area of community colleges." He said that "a lot of people, when we talk about education, talk about universities. What has been forgotten is how important the community-college system is to our economy, our ability to compete in a global economy. It is literally the conveyor belt to allow people to upgrade their skills when they are going from X job to Y career. “

"As a former member of Congress who had two community colleges in his district," said Mr. Emanuel, "I cannot tell you how important this is. It has not gotten the attention of the four-year institutions, but as a competitive advantage to the U.S., the community-college system is essential. We're going to be outlining a system that is going to fund the growth of the community-college system."

Mr. Emanuel commented on the importance of community colleges, including referencing his experience as a member of Congress and the two community colleges in his former district. Mr. Emanuel noted that the President's announcement will outline "changes on what we can do for community colleges so we can achieve the goal of getting five million more children, five million more workers through the community college system than are expected over the next ten years." He also stated that the community colleges system "will be having major resource infusion, but also reforms and [the system will be] goals-driven as part of an overall economic strategy in the upgrading of American worker/employee skills..."

He said the focus on community colleges is "part of an upgrading of the economic strategy and the upgrading of American workers' skills."

The reauthorization of the Workforce Investment Act is on the horizon and would serve as a likely vehicle for these changes.

ACCT's LAW E-Alerts and Inside the Beltway blog (http://communitycollegebeltwaynews.blogspot.com) will keep you informed of all developments related to President Obama's announcement as they happen.

The audio of his speech can be found here:
http://www.dlc.info/press/Policy_Forum_0609/Emanuel.mp3

In Congressional news, The House Republican Steering Committee selected Rep. John Kline (R-MN) to serve as the new Ranking Member on the House Education and Labor Committee.

The Education and Labor Committee will have the major task of dealing with the budget reconciliation, which allows for moving of the Pell Grant program to a mandatory program and merging of the Direct Lending program and Federal Family Education Loan program into a single program. Additionally, the committee will have to consider the reauthorization of the Workforce Investment Act and the No Child Left Behind Act (Elementary and Secondary Education Act).

Changes to the House Education and Labor Committee

June 10, 2009 — Yesterday, the House Republican Steering Committee selected Rep. Howard “Buck” McKeon (R-CA) as the ranking member of the House Armed Services Committee. Rep. McKeon takes the spot of Rep. John McHugh who resigned last week because of his nomination to serve as Army Secretary.

Rep. McKeon had served as the ranking member of the Education and Labor Committee and chaired the committee during the 109th Congress. Rep. McKeon will continue to serve as the ranking member until a replacement is announced.

According to reports, a number of Republican members have indicated an interest in the ranking member post including Reps. Tom Petri (R-WI), Michael Castle (R-DE), Joe Wilson (R-SC) and Rep. John Kline (R-MN). The Steering Committee is expected to make a decision in the next week or so.

Ed Secretary Duncan Announces Grant Competition, Cites Community Colleges as “Invaluable Resources” for Displaced Workers

June 4, 2009—U.S. Secretary of Education Arne Duncan visited the Milwaukee Area Technical College today to announce a $7 million special competitive grant to establish innovative and sustainable community college programs that prepare displaced workers for second careers. This first-of-its-kind grant program will be used to develop national models that can be replicated across the country, especially in communities where autoworkers have lost their jobs.

Accompanied by Wisconsin Gov. Jim Doyle, Milwaukee Area Technical College Acting President Vicki Martin and Manpower Chairman and CEO Jeffrey Joerres, Secretary Duncan called upon institutions of higher learning, private and public nonprofit organizations, and other agencies to propose model programs for training adults to pursue family-sustaining second careers. Secretary Duncan is one of several cabinet secretaries and other high-level officials from the Obama administration traveling across the Midwest this week to visit communities affected by layoffs in the automobile industry.

"Education is the catalyst for a strong economy and the means by which adults will reinvent themselves and rebuild the industrial cities that have been the foundation of our nation," Secretary Duncan said. "The Obama administration is committed to supporting auto communities and workers, who have been displaced from their jobs. Community colleges are invaluable resources for adults seeking to acquire new skills that are needed by employers."

The U.S. Department of Education launched its first special focus competition grant today from the Fund for the Improvement of Postsecondary Education (FIPSE) benefiting community colleges. The grant will provide seed funding for model programs in community colleges that help adults develop the skills they need to succeed in a new career.

The programs could provide services, such as tutoring, academic and career counseling, and help with the registration process. They also could remove financial constraints for adults returning to school, including child care, transportation, and textbooks. These innovative new programs must be sustainable beyond the three-year grant period.

The grant application will be announced online today, June 4, in the Federal Register, and published tomorrow, June 5. Applications will be due on Aug. 7. The Department of Education anticipates awarding approximately 28 grants by mid-September with projects beginning on or about Oct. 1. The estimated range of the grant awards is $300,000-$750,000 over a three-year period.

For more information about the FIPSE program, go to http://www.ed.gov/about/offices/list/ope/fipse/index.html.

The Federal Register can be accessed at: http://www.gpoaccess.gov/fr/browse.html

Education Secretary Arne Duncan Testifies Before Senate and House Appropriations Subcommittees

June 3, 2009—Today, Education Secretary Arne Duncan testified before the Senate Labor, HHS and Education Appropriations Subcommittee and the House Labor, HHS, Education and Related Agencies Subcommittee to address "The Administration's FY2010 Budget Request for the Department of Education."

Duncan told the Senate that "this budget makes important choices to continue and expand education for our children from cradle to career."

The Department of Education has submitted an FY2010 budget for an overall $46.7 billion of discretionary funding, an increase of $1.3 billion over FY2009. One of the goals of the budget, Duncan said, is to assure that students have the financial aid and student loans they need not just to enter college, but to complete their college educations.

"The Recovery Act made an important down payment in our effort to expand student aid," said Duncan. "In addition to more aid, we want to make sure that students are not just attending college, but graduating. The stimulus bill provided $17.1 billion so that we would increase the maximum Pell award from $4,850 to $5,350. In our fiscal year 2010 budget, we propose important and permanent changes to assure students have access to federal grants, aid, and loans. The first is to move the Pell program from discretionary to a mandatory appropriated entitlement. The second, we propose to link the grant increase in the maximum grant to the consumer price index, plus one percent every year, which will allow the maximum grant to grow at a rate higher than inflation so that students can keep up with the rising cost of college."

The Education Department would pay for this by improving and streamlining the federal student loan program. All loans would be moved over time from the Federal Family Education Loan Program to the direct-loan program. Duncan stressed that doing this would improve the loan program without creating a burden for tax payers.

Senator Tom Harkin (D-Iowa) expressed concern over changing the Pell program from discretionary to mandatory, saying he doesn't "have a closed mind about it," but that the issue needs further discussion.

Senator Patty Murray (D-Wash.) expressed concern over the need for an improved system of matching practical and technical skills acquired during higher education with skills needed once students are working. She said she will soon be introducing legislation to bring together "all the players from the schools to the community to the community leaders, labor, business, workforce leaders to design programs for their own communities." She asked whether there is a place in the budget for these needs.

Duncan responded that "community colleges play a huge role in the trajectory of education continuum" and that community colleges "have been a highly under-utilized, undervalued resource." He mentioned the nomination of Martha J. Kanter, chancellor of the Foothill-De Anza Community College District in California, to the position of Undersecretary of Education as a "strategic" placement to include community colleges at the federal legislative level.

"It's so important," Duncan said, "to help shape the opportunities that our high school and community college students have. We can't do enough of that. We have to tie education to the real world."

View video of Secretary Duncan's testimony to the Senate.

President Obama Highlights the Importance of Community Colleges

May 8, 2009—Today, President Barack Obama held a press conference to address the nation’s rising unemployment rate, which now stands at 8.9 percent, with 539,000 jobs lost in April of this year. At the conference, President Obama announced a significant change in the unemployment benefit rules, which stipulates that unemployed workers receiving unemployment benefits may qualify for education- and training-related financial aid.

Specifically, the Federal Pell Grant program can provide up to $5,350 for educational costs at community colleges, colleges and universities, and many trade and technical schools. "The idea here,” said President Obama, “is to fundamentally change our approach to unemployment in this country, so that it's no longer just a time to look for a new job, but is also a time to prepare yourself for a better job. That's what our unemployment system should be--not just a safety net, but a stepping stone to a new future." As part of this new plan, states will be encouraged to change rules that prevent the unemployed from enrolling in education or training courses because they are supposed to actively look for a job while taking government benefits.

Secretary of Education Arne Duncan and Secretary of Labor Hilda Solis have collaborated on the launch of a new website, http://www.opportunity.gov/, which provides the necessary information for unemployed workers about the array of financial opportunities open to them.

In other major news, President Obama announced that Dr. Jill Biden, a professor at Northern Virginia Community College and Second Lady of the United States, will “lead a national effort to raise awareness about what we're doing to open the doors to our community colleges.”

President Obama stated that “in the weeks to come, I will also lay out a fundamental rethinking of our job-training, vocational education, and community college programs. It's time to move beyond the idea that we need several different programs to address several different problems--we need one comprehensive policy that addresses our comprehensive challenges.”

To watch the President’s speech:
http://www.cspan.org/Watch/Media/2009/05/08/HP/R/18388/April+Unemployment+hits+89.aspx

Read a transcript of the President’s speech at:
http://www.whitehouse.gov/the_press_office/Remarks-by-the-President-on-Job-Creation-and-Job-Training-5/8/09/

President Obama Releases Detailed FY2010 Budget Request

May 7, 2009—Today, President Barack Obama formally released his FY2010 budget request. The budget request provides the full listing of program appropriations and other Administration-directed funding. The Administration’s budget totals $3.4 trillion with $46.7 billion in discretionary funding for the Department of Education (does not include the Pell Grant program).

In the President’ budget request, the Pell Grant maximum would be increased to $5,550. The budget request outlines the path to reclassify the Pell Grant program as a mandatory program, with increases based upon Consumer Price Index plus one percent. The budget states that $4 billion each year would be saved by the consolidation of the Federal Family Education Loan program. Additionally, the request contains a $500 million ($2.5 billion over five years) program to improve college success and completion. This program would also be funded on the mandatory side.

Here are some funding levels for key community college programs (compared to FY2009):

· Pell Grant maximum: $5,550 ($200 increase)
· Career and Technical Education State Grants: $1.16 billion (level funding)
· Tech Prep: $102.9 million (level funding)
· Strengthening Institutions, Title III-A: $84 million ($4 million increase)
· GEAR-Up: $313.2 million (level funding)

At the Department of Labor, Secretary Hilda Solis announced the creation of the Career Pathways Innovation Fund, which will continue the support for community colleges provided by Community-Based Job Training Grants (CBJTG), but will focus on career-pathway programs at community colleges. These programs help individuals of varying skill levels enter and pursue rewarding careers in high-demand and emerging industries. Funded at $135 million, career-pathway programs are clear sequences of coursework and credentials that may lead to better jobs in particular fields, such as health care, law enforcement, or clean energy.

Grants will be awarded to community colleges and consortia of community colleges that develop or expand career-pathway programs in partnership with education and training providers, employers, and the workforce investment system. In addition to the provision of training services, a portion of funds may be used for program operations and capacity-building activities, such as curriculum development, hiring faculty, and purchasing equipment.

The Department of Education funding levels are detailed at: http://www.whitehouse.gov/omb/budget/fy2010/assets/edu.pdf

The Department of Labor funding levels can be found at:
http://www.whitehouse.gov/omb/budget/fy2010/assets/lab.pdf

House Passes H.Res. 338, National Community College Month

Today, the House of Representatives passed H. Res. 338, which supports the goals and ideals of National Community College Month.

The resolution was sponsored by the four co-chairs of the House Community College Caucus, Reps. Michael Castle (R-DE), Tom Latham (R-IA), Brad Miller (D-NC), and David Wu (D-OR). The resolution was sponsored by a total of 44 members of the U.S. House of Representatives.

The resolution received 424 yea votes and zero nays, with 9 members not voting.

Congress Poised to Pass Budget

April 28, 2009—Congress is poised to pass a $3.5 trillion fiscal year 2010 budget plan that will back President Obama’s funding priorities. The Conference Committee was able to reach a final agreement on the funding level of the FY2010 budget resolution, which will provide $89.4 billion for the Function 500 account containing the education and labor funding accounts. The Conference Committee also included reconciliation language for education. Reconciliation paves the way for Congress to eliminate the Federal Family Education Loan program and create a single federal-loan program and use the savings to support a Pell Grant mandatory (entitlement) program.

The House and Senate are expected to vote and pass the bill. For more information, please visit: http://www.rules.house.gov/bills_details.aspx?NewsID=4231

In other related Congressional news, Sen. Arlen Specter from Pennsylvania announced today that he is changing parties and will run for re-election as a Democrat. Sen. Specter will retain his seniority in the Senate.

Congress Moves to Pass Budget Resolution

April 24, 2009—It now appears that Congress and the Administration have reached a tentative agreement on the parameters for a final budget resolution for FY2010. According to press accounts, the budget resolution will include budget reconciliation language that will pave the way for converting the Pell Grant program into a mandatory (entitlement) program. The reconciliation process would allow Congress to move legislation without a threat of a Senate filibuster and would only require 51 votes to pass in the Senate.

ACCT has come out in support of the Administration’s proposal on converting Pell. ACCT’s letter can be found at: http://www.acct.org/advocacy/letters/

Earlier this week, the Senate announced its conferees for the Budget Conference Committee: Budget Committee Chair Kent Conrad (D-ND), Sen. Patty Murray (D-WA) and Budget Committee Ranking Member Judd Gregg (R-NH). The House also announced its conference members: House Budget Committee chairman John Spratt (D-SC), Rep. Rosa DeLauro (D-CT), Rep. Allen Boyd (D-FL), Rep. Paul Ryan (R-WI) and Rep. Jeb Hensarling (R-TX). The announcement of the conferees is an indication that a tentative agreement has been reached.

The conference committee will likely meet next week and finalize a budget resolution quickly. The Administration has indicated that they would like to have the budget resolution passed by the end of President Obama's first 100 days. The budget resolution does not require the President’s signature. The resolution is vital in shaping the appropriations process for the given fiscal year.

Congress Returns from Break and More Changes

April 21, 2009—With the end of the spring district work period, Congress returns to finalize action on the FY2010 budget resolution. Congress is expected to split the funding differences between their respective bills, but the larger question is whether Congress will include budget-reconciliation language in regards to education, energy and health care. The budget reconciliation is not subject to a filibuster; therefore, it only requires a majority of the votes. If Congress includes budget-reconciliation language for education, this will pave the way for Congress to consider pushing the Pell Grant program into an entitlement and consolidate the federal-loans programs into a single federal-loan program. The budget resolution provides a rough outline of funding areas, though it does deal specifically with all the programmatic funding levels and does not require the President’s signature.

The House resolution provides $533 billion for non-defense discretionary funding, with $88.7 billion in discretionary funding for the Function 500 account for Education, Training, Employment, and Social Services. The Senate resolution provides $525 billion for non-defense discretionary funding, with $89.4 billion in discretionary funding for the Function 500 account for Education, Training, Employment, and Social Services. Both resolutions set a Pell Grant maximum level of $5,550 in FY2010 and include a deficit-neutral reserve fund to allow for Pell Grant increases in line with those proposed in President Obama's budget.

Congress is expected to finalize action in the next weeks. Meanwhile, the Administration is expected to release its full budget request for FY2010 the week of May 4th.

In other news, the Administration continues to appoint individuals for various positions in the federal government. Yesterday, the Department of Education announced that Robert Shireman will serve as Deputy Undersecretary for Postsecondary Education. This newly created position does not require Senate confirmation. Shireman will advise the Department on college financial issues and other higher education initiatives. Shireman is a leading advocate for college access and financial aid. He previously served as a congressional appointee to the Federal Advisory Committee on Student Financial Assistance, as an adviser to U.S. Sen. Paul Simon, and as part of President Clinton's White House National Economic Council. Shireman also founded the Institute for College Access and Success and the Project on Student Debt. For more information visit: http://www.ed.gov/news/pressreleases/2009/04/04202009b.html

Additionally, the Administration has nominated Dr. Rajiv J. Shah as undersecretary for the Department of Agriculture. Dr. Shah will serve as undersecretary for research, education and economics and the USDA's chief scientist. Dr. Shah is currently a director at the Bill and Melinda Gates Foundation and manages the Gates Foundation’s program areas in Agricultural Development and Financial Services for the Poor. Dr. Shah is a trustee for the Seattle Community College District, WA. For more information, visit: http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2009/04/0115.xml

House and Senate Pass Respective Budget Resolutions

April 3, 2009—Yesterday, the House of Representatives and the Senate passed their respective FY2010 Budget Resolutions, paving the way for Congressional leadership to work on a final resolution. The House vote was 233-196 and the Senate vote was 55-43; both votes were divided largely along party lines. The budget resolution provides only a rough outline of funding areas, though it does deal specifically with all the programmatic funding levels.

While the conference committee will hash out the final funding levels, the major decision confronting the Congressional leadership is whether to utilize the budget reconciliation process. Reconciliation is a procedural way for Congress and the Administration to overcome a filibuster. The reconciliation process and only needs the support of 51 members in the Senate.

The Obama Administration has outlined a series of proposals on health care, energy and education which would be easier to pass if the Senate was not able to filibuster the bills. Specifically, the Administration has called for the conversion of the Pell Grant program to a mandatory (entitlement, similar to Medicare) program (with increases based upon the consumer price increase plus one percent) and the shift of the student-loan programs to the direct-loan program. If Pell becomes a mandatory program, then it will no longer be subject to the annual appropriations process.

For the next two weeks, members of Congress will be on their spring district work period. During this time, Congressional leaders are expected to hammer out a final agreement and resolve whether to use the reconciliation process.

President Obama Nominates Dr. Martha Kanter as Under Secretary of Education

April 2, 2009—Yesterday, President Barack Obama announced that he will nominate Dr. Martha Kanter, Chancellor of the Foothill-De Anza Community College District in California, to be Under Secretary of Education at the Department of Education. This is a significant achievement for community colleges, as the Under Secretary of Education will oversee all issues related to higher education, vocational education, adult education and student financial aid at the Department. The Dr. Kanter’s nomination is subject to Senate confirmation, she is expected to be confirmed shortly.

ACCT has long supported the elevation of community colleges inside of the Department of Education. When ACCT met with the Obama Transition Team, ACCT strongly advocated for the elevation of a community college leader within the Department.

Click here for the official White House press release.

Congressional Committees Moves FY2010 Budget Resolution

March 26, 2009—Yesterday, the House Budget Committee passed its version of the FY2010 budget resolution by a 24-15 vote along party lines. Budget Committee Chairman Rep. John Spratt (D-SC) introduced a budget resolution that largely mirrors President Barack Obama’s budget outline, introduced in February. The House resolution provides $533 billion for non-defense discretionary funding, with $88.7 billion in discretionary funding for the Function 500 account for Education, Training, Employment and Social Services. The budget resolution provides a rough outline of funding areas, but does deal with all the programmatic funding levels. The resolution would expand the Pell Grant program maximum to $5,550, expand the Perkins Loan program, and fund a new college access and completion program. The House resolution includes a reserve fund to provide Pell Grant increases in line with those proposed by the Administration’s budget.

Most importantly, the House included legislative language that calls on Congress to pass a budget reconciliation that would serve as legislative vehicle to convert the Pell Grant program to a mandatory program (with increases based upon the consumer price increase plus one percent) and the shift of the student-loan programs to the direct-loan program. The budget reconciliation process was used recently to pass the College Cost Reduction Act (CCRA), which included additional funding for Pell Grants among other things. The budget reconciliation process allows Congress to pass legislative items by a simple majority. Budget reconciliations cannot be filibustered in the Senate.

Today, the Senate Budget Committee passed its version of the FY2010 Budget Resolution by a 13-10 vote along party lines. The Senate budget resolution provides $525 billion for non-defense discretionary funding, with $89.4 billion in discretionary funding for the Function 500 account for Education, Training, Employment and Social Services. The resolution also sets a Pell grant level of $5,550 in 2010 and includes a deficit-neutral reserve fund to allow for increases in Pell grants in line with those proposed in President Obama’s budget.

Senate Budget Committee Chairman Kent Conrad (D-ND) did not include the reconciliation instructions in the Senate Budget Resolution. But Senate Majority Leader Harry Reid (D-NV) has indicated that, during the House and Senate conference of the Budget Resolution, Congress will consider whether to utilize a Budget Reconciliation process. Chairman of the House Appropriations Committee David Obey (D-WI) is among those in opposition to making the Pell Grant program mandatory.

The House and Senate will need to pass their respective resolutions before being moved to consideration by the Conference Committee.

The House resolution can be found here: http://budget.house.gov/

The Senate resolution can be found here: http://budget.senate.gov/democratic/

President Obama Outlines Education Plan; Senate Passes FY2009 Omnibus

March 11, 2009—Yesterday, President Barack Obama in a speech to the Hispanic Chamber of Commerce outlined his education plan. The pillars of the plan cover: 1) Investing in early childhood initiatives like Head Start; 2) Encouraging better standards and assessments by focusing on testing itineraries that better fit our kids and the world they live in; 3) Recruiting, preparing, and rewarding outstanding educators by offering incentives for a new generation of teachers and for new levels of excellence from all of our teachers; 4) Promoting innovation and excellence in America’s schools by supporting charter schools, reforming the school calendar and the structure of the school day; and 5) Providing every American with quality higher education—whether it's college or technical training.

As was noted in the President's budget outline, the Administration is looking to make the Pell Grant mandatory and adjusted to the cost of living, thereby removing the program from the annual appropriations process. Most notably, President Obama renewed his call for each American to achieve at least one year of higher education. In doing so, President Obama stated his support for a $2.5 billion program aimed at higher education graduation and persistence.

President Obama mentioned community colleges specifically in his speech. He said:

“…so let's not stop at education with college. Let's recognize a 21st century reality: Learning doesn't end in our early 20s. Adults of all ages need opportunities to earn new degrees and new skills, especially in the current economic environment. That means working with all our universities and schools, including community colleges—a great and undervalued asset—to prepare workers for good jobs in high-growth industries, and to improve access to job training not only for young people who are just starting their careers, but for older workers who need new skills to change careers. And that's going to be one of the key tasks that Secretary Solis is involved with […] making sure that lifelong learning is a reality and a possibility for more Americans.”

While the speech did not explicitly cover this, the White House's Fact Sheet states that the Administration will invest in community colleges to conduct an analysis of high-demand skills and technical education, and shape new degree programs for emerging industries. President Obama's speech can be found here: http://www.whitehouse.gov/the_press_office/Remarks-of-the-President-to-the-Hispanic-Chamber-of-Commerce/

In other news, the Senate was finally able to end debate on the FY2009 Omnibus Appropriations bill. The Senate by voice vote passed the bill and it is now headed to the President's desk for his signature. President Obama is expected to sign the bill into law.

Senate Delays Action on Omnibus Appropriations

March 6, 2009-Senate Majority Leader Harry Reid (D-NV) was forced last night to pull the FY2009 Omnibus Appropriations from consideration because he was unable to end debate on the bill. Sen. Reid needed to garner 60 votes to end debate on the bill and vote on final passage. According to press reports, Sen. Reid is one vote short. The Senate is now slated to reconvene on Monday to continue discussion and attempt again to pass the bill.

This past week, the debate on the Omnibus appropriations bill has largely centered on earmarks. The Senate voted on amendments to strip a number of earmarks from the bill. None of these amendments has passed. Some Senators are attempting to remove a number of other provisions in the Omnibus bill, but House Speaker Nancy Pelosi (D-CA) has indicated that if the Senate amends the Omnibus bill, the House would likely just pass a long-term continuing resolution for FY2009 based upon the FY2008 funding level.

Meanwhile, the House and Senate will pass a short-term continuing resolution to fund the federal government. The current continuing resolution was slated to expire today.

Here are the funding levels for programs important to community colleges:

Pell Grant Program: The bill increases the maximum Pell Grant by $119 to $4,360. With additional mandatory funding under the College Cost Reduction Act the maximum Pell Grant is $4,850. With the funding from the stimulus bill, the Pell Grant maximum will be $5,350.

Community Based Job Training Grant Program: The bill provides $125 million for the Community Based Job Training Grant program, level funding.

Perkins Career and Technical Education Program: The bill provides $1.27 billion for the State Career and Technical Education Grants (Perkins), including funding for the Tech-Prep program, level funding.

The Labor, Health and Human Services and Education section of the bill can be found here: http://appropriations.house.gov/pdf/2009_Con_Bill_DivF.pdf

In other news, Second Lady Dr. Jill Biden and Secretary of Education Arne Duncan visited Miami Dade College today. Dr. Biden and Secretary Duncan visited the college to discuss college access and the critical role of community colleges in both providing quality higher education opportunities and revitalizing the economy. More information can be found on the Miami Herald Web site: http://www.miamiherald.com/news/breaking-news/story/935764.html.

President Obama Releases Budget Outline

February 26, 2009--Today, President Barack Obama released his preliminary budget outline which totals $3.55 trillion for all federal programs. More specifically, the Department of Education would be funded at $46.7 billion. The biggest change was the removal of Pell Grant program from the discretionary section to the mandatory section (program would be funded and adjusted automatically) of the federal budget.

President Obama is outlining two key changes within the Department of Education's budget:
1) Change the Pell Grant program from a discretionary program to a mandatory program which would remove the program from the yearly appropriations process. In addition, budget outlines that beginning with academic year 2010-2011, the Pell grant maximum would be indexed to the consumer price index plus one percent, thus ensuring that Pell grant awards would meet their original objective to cover a substantial percentage of college costs.
2) The budget proposes a new $2.5 billion, over five years, grant program for a new federal-state-local partnership to improve retention and graduation rates, particularly for low-income college students.

The Administration is also looking to extend the "American Opportunity Tax Credit" which is a $2,500 tuition tax credit, with partial refundability.

The Department of Labor's budget included a priority to fund programs that trains and prepares the workforce for jobs in emerging industries. The Administration's budget will also provide funding for a new transitional jobs and career pathway programs, testing innovative approaches to helping low-income Americans.

The Administration will release their actual budget at end of next month. For more information: visit http://www.whitehouse.gov/omb/budget.

House Passes FY2009 Omnibus Appropriations Bill

February 25, 2009—Today, the House of Representatives passed H.R. 1105, the FY2009 Omnibus Appropriations bill, by a vote of 245-178. The bill covers the nine remaining appropriations bills, including the Labor, Health and Human Services and Education portion. The Omnibus bill allocates $410 billion for the federal fiscal year. Last year, Congress and the Administration were able to finalize the Defense, Military Construction-VA and Homeland Security appropriations bills but were unable to resolve differences on the other nine appropriations bills. The Senate is expected to take up and pass the bill this week. President Barack Obama is expected to sign the bill into law.

Here are the funding levels for programs important to community colleges:

Community Based Job Training Grant Program: The bill provides $125 million for the Community Based Job Training Grant program, level funding.

The Labor, Health and Human Services and Education section of the bill can be found here: http://appropriations.house.gov/pdf/2009_Con_Bill_DivF.pdf

In other major news, Rep. Hilda Solis (D-CA) was confirmed by the Senate yesterday by a 80-17 to be Secretary of Labor. Rep. Solis is a former trustee at Rio Hondo College.

Congressional Leaders Release FY2009 Omnibus Appropriations Bill

February 23, 2009—Today, Congressional leaders released the FY2009 Omnibus Appropriations bill that covers the nine remains appropriations bills, including the Labor, Health and Human Services and Education section. The Omnibus bill allocates $410 billion for the federal fiscal year. Last year, Congress and the Administration were able to finalize the Defense, Military Construction-VA and Homeland Security appropriations bills but were unable to resolve differences on the other nine appropriations bills. Congress is expected to take up and pass the bill this week. President Barack Obama is expected to sign the bill into law.

Here are the funding levels for programs important to community colleges:

Community-Based Job-Training Grant Program: The bill provides $125 million for the Community Based Job Training Grant program, which is level funding.

Perkins Career and Technical Education Program: The bill provides $1.27 billion for the State Career and Technical Education Grants (Perkins), including funding for the Tech-Prep program.

The Labor, Health and Human Services and Education section of the bill can be found here: http://appropriations.house.gov/pdf/2009_Con_Bill_DivF.pdf

President Obama Signs Stimulus Bill; ACCT Issues Bill Summary

February 17, 2009—Today, President Barack Obama signed into law H.R. 1, American Recovery and Reinvestment Act of 2009. The federal departments are now working to get the various programs up and running as soon as possible.

ACCT has prepared a summary of the bill with the relevant portions for community colleges, available for download as a PDF document at the following link: http://www.acct.org/ACCT%20HR%201%20summary.pdf

House and Senate Pass H.R. 1

February 14, 2009—Late last night, the Senate passed the finalized version of H.R. 1, the American Recovery and Reinvestment Act of 2009 by a vote of 60-38. Earlier in the day, the House passed H.R. 1 by a vote of 246-183. Largely supported along party lines, the bill represents an unprecedented amount of funding for higher education and job training programs. The final bill totals $787 billion. President Barack Obama is expected to sign the bill into law this coming Monday.

The overall economic recovery and stimulus bill contains a number of key areas that ACCT outlined to the Obama Administration and Congress in its stimulus proposal in December.

ACCT is pleased that the Administration and Congress have incorporated ACCT's priorities in the final stimulus bill. ACCT's priorities included: 1) a $700 increase in the Pell Grant maximum; 2) $5 billion for community college infrastructure; and 3) $1.5 billion for job-training funds focused on community college campuses.

The final version of H.R. 1 includes the following provisions, which will have a positive impact on community colleges and its students:

1) $53.6 billion for the State Fiscal Stabilization Fund. Approximately $48.3 billion will be allocated to states based upon school age population and total population. Governors must use 82% of these funds to support k-12 education and higher education. Funding received must first be used to restore state aid to school districts under each respective state 's primary elementary and secondary education funding formulae to the greater of the fiscal year 2008 or 2009 level in each of fiscal years 2009, 2010, and 2011, and, where applicable, to allow existing formula increases for elementary and secondary education for fiscal years 2010 and 2011 to be implemented; and to restore state support to public institutions of higher education to the greater of the fiscal year 2008 or fiscal year 2009 level, to the extent feasible given available stabilization funds. Public institutions of higher education receiving Stabilization funds must use these funds for educational and general expenditures, and in such a way as to mitigate the need to raise tuition and fees, or for modernization, renovation, or repairs of facilities that are primarily used for instruction, research, or student housing. Any remaining education funds must be allocated to school districts based on the Federal Title I formula.

The conference agreement also provides that governors shall use 18% of state allocations for public safety and other government services, which may include education services and higher-education modernization, renovation and repair activities.

2) $15.6 billion to increase the maximum Pell Grant by $500. An additional $1.4 billion was provided to eliminate the shortfall in the mandatory portion of the Pell Grant program. This aid will help 7 million students pursue postsecondary education.

3) $3.95 billion for job training, including state formula grants for adult, dislocated worker, and youth programs. $2.95 billion will be distributed by formula funds, and Workforce Investment Boards can contract with institutions of higher education and eligible training entities to provide training. $750 million will be available for competitive grants; $500 million will be for programs focused on the Green Jobs Act and $250 million for other job programs, with priority for health-care sector jobs.

4) A new $2,500 tuition tax credit, with 40% refundability.

5) $200 million for the work-study program.

For more information about the bill, please visit http://www.rules.house.gov/.

In other news, the Senate Health, Education, Labor and Pensions Committee voted to approve the nomination of Rep. Hilda Solis (D-CA) as Secretary of Labor. The HELP Committee action paves the way for the full Senate to vote on Rep. Solis's confirmation.

House and Senate Conference Committee Reach Agreement on H.R. 1

February 13, 2009—Late last night, the House and Senate Conference Committee announced that they had reached an agreement on a final version of H.R. 1, the American Recovery and Reinvestment Act of 2009. The Senate bill totaled $838 billion; the House passed its own version of H.R. 1, totaling $819 billion. The agreed-upon conference bill totals $790 billion. The House is expected to pass its bill on Friday, with the Senate expected to take action on Saturday. Congress is looking to get a bill to President Barack Obama by early next week.

The overall economic recovery and stimulus bill contains a number of key areas that ACCT outlined to the Obama Administration and Congress in its stimulus proposal in December.

ACCT is pleased that the Administration and Congress have incorporated ACCT's priorities in the final stimulus. ACCT's priorities included: 1) a $700 increase in the Pell Grant maximum; 2) $5 billion for community college infrastructure; and 3) $1.5 billion for job-training funds focused on community college campuses.

The final version of H.R. 1 includes the following provisions, which will have a positive impact on community colleges and its students:

1) $53.6 billion for the State Fiscal Stabilization Fund. Approximately $48.3 billion will be allocated to states based upon school age population and total population. Governors must use 82% of these funds to support k-12 education and higher education. Funding received must first be used to restore state aid to school districts under each respective state 's primary elementary and secondary education funding formulae to the greater of the fiscal year 2008 or 2009 level in each of fiscal years 2009, 2010, and 2011, and, where applicable, to allow existing formula increases for elementary and secondary education for fiscal years 2010 and 2011 to be implemented; and to restore state support to public institutions of higher education to the greater of the fiscal year 2008 or fiscal year 2009 level, to the extent feasible given available stabilization funds. Public institutions of higher education receiving Stabilization funds must use these funds for educational and general expenditures, and in such a way as to mitigate the need to raise tuition and fees, or for modernization, renovation, or repairs of facilities that are primarily used for instruction, research, or student housing. Any remaining education funds must be allocated to school districts based on the Federal Title I formula.

The conference agreement also provides that governors shall use 18% ($8.2 billion) of state allocations for public safety and other government services, which may include education services and higher-education modernization, renovation and repair activities.

2) $15.6 billion to increase the maximum Pell Grant by $500. This aid will help 7 million students pursue postsecondary education.

3) $3.95 billion for job training, including state formula grants for adult, dislocated worker, and youth programs. $2.95 billion will be distributed by formula funds, and Workforce Investment Boards can contract with institutions of higher education and eligible training entities to provide training. $750 million will be available for competitive grants; $500 million will be for programs focused on the Green Jobs Act; and $250 million for other job programs, with priority for health-care sector jobs.

4) A new $2,500 tuition tax credit, with 40% refundability.

5) $200 million for the work-study program.

For more information about the bill, please visit http://www.rules.house.gov/.

Senate Version of H.R. 1 Passes by 61-37 Vote; Committee Conferees Announced

February 11, 2009—Yesterday, the Senate passed its version of H.R. 1, the American Recovery and Reinvestment Act of 2009 by a 61-37 vote.

The Senate bill totals $838 billion, which is higher than the $780 billion originally stated on Friday evening. This is in large part due to the new cost figures from the Congressional Budget Office.

The House passed its version of H.R. 1, totaling $819 billion, but the mix of spending, tax cuts and overall priorities is widely different.

The House and Senate announced the conferees for the conference committee. The members are:

Senate:
• Max Baucus (D-MT), Finance Committee Chair
• Thad Cochran (R-MS), Ranking Member, Appropriations Committee
• Charles Grassley (R-IA), Ranking Member, Finance Committee
• Daniel Inouye (D-HI), Chair, Appropriations Committee
• Harry Reid (D-NV), Majority Leader

House:
• Dave Camp (R-MI), Ranking Member, Ways and Means Committee
• Jerry Lewis (R-CA), Ranking Member, Appropriations Committee
• David Obey (D-WI), Chair, Appropriations Committee
• Charlie Rangel (D-NY), Chair, Ways and Means Committee
• Henry Waxman (D-CA), Chair, Committee on Oversight and Government Reform

The Senate and House leaders have signaled that they are working toward negotiating a deal on a final bill. Congress is looking to get a bill to President Barack Obama by early next week.

Senate Debates Stimulus—Higher Education Funding At Risk

February 4, 2009-This week, the Senate began debating its version of H.R. 1, the American Recovery and Reinvestment Act of 2009, which includes provides $900 billion in tax cuts and federal spending. Specifically, H.R. 1 provides: 1) $39 billion to local school districts and public colleges and universities, distributed through existing state and federal formulas; $15 billion in incentive grants to states as a reward for meeting key education performance measures; and $25 billion to states for other high-priority needs, such as public safety and other critical services, which may include education; 2) $13.9 billion for Pell grants, which will increase the maximum by $281 in the 2009-2011 academic years; 3) $3.5 billion to improve and modernize higher-education facilities, with a provision that community colleges are entitled to the same percentage of state money as there are students attending community colleges in the state; and 4) $750 million for a new program of competitive grants for worker training, of which $500 million is designated for projects to prepare workers for careers in energy and renewable industries.

There is now word that the Senate might not have the 60 votes necessary (to overcome a procedural process) to finalize action and pass the bill. In addition, we have learned that some Senators have targeted the education funding provisions within the bill the as non-stimulative. It is now critical for community college advocates to step up support for the education provisions in the stimulus. These funds are critical for students and institutions as they work to get people educated and working and helping companies create jobs. Furthermore, community college infrastructure spending will create thousands of jobs.

Please contact your Senators with your support of the stimulus bill and urge them not to cut the education funding provisions in H.R. 1. Senators can be reached through the Capitol Switchboard at 202-224-3121 or via e-mail at http://www.congressweb.com/cweb4/index.cfm?orgcode=acct .

House Passes Stimulus Bill

January 29, 2009-Yesterday, the House of Representatives passed H.R. 1, the American Recovery and Reinvestment Act of 2009, by a 244-188 vote divided largely along party lines. H.R. 1 provides $819 billion in spending and tax cuts. Specifically, H.R. 1 provides: 1) $39 billion to local school districts and public colleges and universities, distributed through existing state and federal formulas; $15 billion in incentive grants to states as a reward for meeting key education performance measures; and $25 billion to states for other high-priority needs, such as public safety and other critical services, which may include education; 2) $15.6 billion for Pell grants, which will increase the maximum by $500 in the 2009-2010 academic year and by $500 in the 2010-2011 academic year; 3) $6 billion to improve and modernize higher-education facilities; and 4) $750 million for a new program of competitive grants for worker training, of which $500 million is designated for projects to prepare workers for careers in energy and renewable industries.

The House now waits for the Senate to complete action on its version of the stimulus. Senate leaders are working to bring the bill to the floor next week.

The details of the House bill can be found here: http://thomas.loc.gov/cgi-bin/bdquery/z?d111:H.R.1:

ACCT Sends Letter In Support Of House Economic Stimulus Bill

Click here to download the letter in PDF format.

President Obama Details Stimulus Plan; Senate Committee Releases Stimulus Highlights

January 26, 2009--President Barack Obama released his economic recovery plan this past weekend. The two overall goals of the plan are to generate or save 3 to 4 million jobs and to spend at least 75% of the stimulus funds within 18 months.

Many of the provisions that were included in the plan are contained in the House Stimulus Proposal. The major portions include: 1) funding to states for public education; 2) a $500 Pell grant maximum increase; 3) education infrastructure funds; and 4) a new higher-education tax cut, a $2,500 American Opportunity Tax Credit that is partially refundable.

The plan can be found here: http://www.whitehouse.gov/assets/Documents/recovery_plan_metrics_report.pdf?hpid=topnews

Meanwhile, last Friday, the Senate Appropriations Committee released highlights of its stimulus bill. It appears that the final bill is not publicly available. The overall funding in the bill and for higher education specifically is not as robust as that included in the House bill. The highlights of the bill include: 1) $39 billion to local school districts and public colleges and universities to be distributed through existing state and federal formulas, $15 billion to states as incentive grants as a reward for meeting key performance measures, and $25 billion to states for other high-priority needs such as public safety and other critical services, which may include education; 2) $13.9 billion for Pell grants ($1.7 billion less than the House allocation); and 3) $3.5 billion for higher-education infrastructure ($2.5 billion less than the House).

The Senate Committee is expected to consider the bill shortly. While the House and Senate bills are similar, it appears that the House and Senate will need to spend some time to conference the two bills once each chamber passes their respective bills.

The Senate highlights can be found here: http://appropriations.senate.gov/

Congress Continues to Move Stimulus Bill

January 23, 2009--Yesterday, the House Ways and Means Committee passed the $275 billion tax provisions included the stimulus package by a 24-13 vote. The overall bill can now be considered on the House floor. The committee included the “American Opportunity” education tax credit, which is a simplification of education credits with a $2,500 credit for higher-education expenses incurred within the first four years of a student's college education (an increase in income limitations), with credit partially refundable (40% refundable) up to $1,000.

Speaker Nancy Pelosi (D-CA) has indicated that the House will move to consider the bill next week.

The Senate Finance Committee released its version of the "American Recovery and Reinvestment Act of 2009" bill today. Finance Committee Chair Max Baucus (D-MT) announced that the committee will move to markup its bill next week. Additionally, the Senate appropriations committee will likely release and markup its bill next week. The bill provides $275 billion in tax cuts. The Senate also included the American Opportunity Tax Credit (but the refundability is for a smaller amount). The proposal would create a $2,500 higher-education tax credit that is available for the first four years of a student's college education. The credit phases out for individual taxpayers with adjusted gross income of $80,000 ($160,000 married filing jointly) or higher. Thirty percent of the available credit is refundable.

President Barack Obama met today with Congressional leaders to stress the need to pass a robust and quick stimulus and economic recovery package. House and Senate Republican leaders voiced concern about the overall size and targeting of the funding within the bill. President Obama urged Congress to move a stimulus bill even if members were opposed to individual provisions. Speaker Pelosi also noted that the overall total for the stimulus package may be larger.

In other news, the nomination of Rep. Hilda Solis (D-CA) has slowed due to a hold placed on her nomination because of her support for the Employee Free Choice Act, or "card check," which would allow workers to organize into a union by signing authorization cards and not by secret ballot. It is unclear when the hold on her nomination will be lifted. Rep. Solis is still expected to be confirmed as Secretary of Labor.

Here are some links to the stimulus package:

The Ways and Means Committee's press release can be found here: http://waysandmeans.house.gov/MoreInfo.asp?section=50

The House Appropriations Committee's bill can be found here: http://appropriations.house.gov/pdf/RecoveryBill01-15-09.pdf

The Senate Finance Committee bill can be found here: http://finance.senate.gov/press/Bpress/2009press/prb012309.pdf

House Committee Passes Stimulus Package

January 22, 2009—Last night, the House Appropriations Committee passed its $825 billion stimulus package by a 35-22 vote. The bill now heads to the House Ways and Means Committee, who has jurisdiction over taxes, to approve the bill, which includes $275 billion in tax provisions. The Ways and Means Committee is expected to take up and pass the bill today. One major amendment of note was passed during the Committee markup. Rep. Mark Kirk (R-IL) offered an amendment, which was approved by voice vote, which would withhold stimulus funds to the state of Illinois unless the Illinois state legislature votes to approve the uses of funds or Gov. Rod Blagojevich is no longer in office.

Senate Majority Leader Harry Reid (D-NV) indicated this week that the Senate Appropriations and Finance Committees are working on their own stimulus proposals with a goal to move the bill shortly. Meanwhile, the Congressional Budget Office released a report yesterday stating that only $26 billion of the $358 billion in infrastructure funds in the stimulus bill would be expended in the next eighteen months. Democratic leaders refuted the findings of the report but this will likely remain a concern as the legislative process continues. The Obama Administration recently stated that their goal is to have $3 of every $4 spent on the stimulus be spent in the next eighteen months.

The House stimulus bill would affect these three key community college funding areas:

1) $79 billion in state fiscal relief to prevent cutbacks to key services, including $39 billion to local school districts and public colleges and universities to be distributed through existing state and federal formulas; $15 billion to states as bonus grants to reward meeting key performance measures; and $25 billion to states for other high-priority needs, such as public safety and other critical services, which may include education.

2) $15.6 billion to increase the Pell maximum grant by $500 for a total of $5,350 for 2009-10.

3) $6 billion for higher education improvement, which includes renovation and modernization, including technology upgrades and energy efficiency improvements. The funds would be distributed to states by formula in proportion to each state's share of full-time equivalent undergraduate students. Funding will be allocated by states to institutions based on the demonstrated need of each institution for facility modernization, renovation, and repair.

In other news, on inauguration day the Senate voted to confirm Arne Duncan as Secretary of Education. Rep. Hilda Solis is expected to be confirmed as Secretary of Labor shortly. ACCT has extended an invitation to Secretary Duncan to appear before the National Legislative Summit.

Here are the links to the House stimulus package:

The Committee's press release can be found here: http://appropriations.house.gov/pdf/PressSummary01-15-09.pdf

The Committee's draft bill can be found here: http://appropriations.house.gov/pdf/RecoveryBill01-15-09.pdf

House Appropriations Chair Releases Stimulus Bill

January 15, 2009—Today, House Appropriations Chairman David Obey (D-WI) released a draft stimulus bill which contains $825 billion for economic recovery and reinvestment. The bill provides $550 billion in targeted funding and $275 billion for tax cuts. The bill contains a number of key items that will likely affect community college directly. The focus of the bill was to provide funding to assist low-income students and modernize the higher education system.

The bill would affect these three key community college funding areas:
1) $79 billion in state fiscal relief to prevent cutbacks to key services, including $39 billion to local school districts and public colleges and universities distributed through existing state and federal formulas; $15 billion to states as bonus grants to reward meeting key performance measures; and $25 billion to states for other high-priority needs, such as public safety and other critical services, which may include education.
2) $15.6 billion to increase the Pell maximum grant by $500 for a total of $5,350 for 2009-10.
3) $6 billion for higher education improvement, which includes renovation and modernization, including technology upgrades and energy efficiency improvements. The funds would be distributed to states by formula in proportion to each states share of full-time equivalent undergraduate students. Funding will be allocated by states to institutions based on the demonstrated need of each
institution for facility modernization, renovation, and repair.

Community colleges may also receive funding through these programs (largely competitive grants):
1) $1 billion for grants to institutional entities for energy sustainability and efficiency recovery. The funding provides grants to institutional entities to identify, design, and implement sustainable energy infrastructure projects and grants for energy efficiency innovative technologies projects on grounds and facilities of institutions. An additional $500 million will be available through loans.
2) $490 million for College Work Study.
3) $750 million is provided for a new program of competitive grants for worker training, of which $500 million is designated for projects to prepare workers for careers in energy and renewable industries.

The House Appropriations Committee is expected to consider the bill shortly. The Senate will craft their own bill with a goal of passing their bill after House action. Congress would like to have something for President-elect Barack Obama's signature by the week of Feb. 16th.

The Committee's press release can be found here: http://appropriations.house.gov/pdf/PressSummary01-15-09.pdf

The Committee's draft bill can be found here: http://appropriations.house.gov/pdf/RecoveryBill01-15-09.pdf

Stimulus Bill Likely to Include ACCT Proposal

January 13, 2009—The Politico , a Washington DC newspaper, is reporting that House and Senate appropriators are working on parameters of stimulus bill which will likely include an increase in the Pell Grant program. According to Congressional staff, the Pell maximum would increase by $500 for a total of $5231. Additionally, Congress is expected to provide funds to states and localities for infrastructure, but it is unclear what portion of these would be open to community colleges.

As you may remember, last December, ACCT proposed three stimulus and economic recovery items to President-elect Barack Obama. The proposal included 1) eliminating the Pell shortfall and increasing the Pell maximum by $700, 2) allocating $5 billion for community college infrastructure and 3) allocating $1 billion for job training grants.

We will continue to update you on any latest developments. The full Politico article can be found here: http://www.politico.com/news/stories/0109/17372.html

Confirmation Hearings for Arne Duncan and Rep. Hilda Solis

January 13, 2009—In the past week, the Senate has been busy holding confirmation hearings for the Cabinet Secretary Designates. Today, the Senate Health, Education, Labor and Pensions Committee held its confirmation hearing for Arne Duncan, Secretary-Designate for the Department of Education. Mr. Duncan, the Chief Executive Officer for Chicago Public Schools, listed some of his priorities, which included childhood education, k-12 and increasing access to higher education. Additionally, Mr. Duncan stated a strong desire to support community colleges and noted that President-elect Obama will provide additional support for community colleges. The full committee hearing can be heard here: http://help.senate.gov/Hearings/2009_01_13/2009_01_13.html

January 9, 2009—The Senate Health, Education, Labor and Pensions Committee held its confirmation hearing for Rep. Hilda Solis (D-CA), Secretary-Designate for the Department of Labor. Rep. Solis, a former trustee from Rio Hondo College, has been a strong advocate for community colleges. Rep. Solis in her comments strongly endorsed the need to pass a stimulus proposal focused on jobs and improving the economy. Rep. Solis specifically noted that community colleges will be intimately involved with President-elect Obama's Green Job initiative. The full committee hearing can be heard here: http://help.senate.gov/Hearings/2009_01_09/2009_01_09.html

The Senate is expected confirm Rep. Solis and Mr. Duncan.

President-elect Obama's Speech on American Recovery and Reinvestment

January 8, 2009—Today, President-elect Barack Obama gave a speech to call for dramatic action for American Recovery and Reinvestment. It is remarkable and significant that President-elect Obama included community college infrastructure as a part of his vision and plan that he will take to Congress. ACCT's stimulus proposal to the Administration requested $5 billion for community college infrastructure.

Below is the specific portion of the speech:

"To give our children the chance to live out their dreams in a world that’s never been more competitive, we will equip tens of thousands of schools, community colleges, and public universities with 21st century classrooms, labs, and libraries. We’ll provide new computers, new technology, and new training for teachers so that students in Chicago and Boston can compete with kids in Beijing for the high-tech, high-wage jobs of the future. "

While we do not have specifics, we are very encouraged by the inclusion of community college infrastructure in the President-elect Obama's economic recovery proposal. We will continue to share information as it becomes available.

The full speech can be found here:

http://change.gov/newsroom/entry/dramatic_action

Community Colleges Submit Transition Proposal; Obama Names Secretary Designees of Education and Labor

December 18, 2008-With the new Administration coming into office in January, ACCT with AACC prepared and submitted a formal transition proposal to President-elect Barack Obama. The transition proposal covers a number of areas of concern for community colleges, including funding for key programs and reauthorization bills. Here is a brief list of some of the major issues included in the proposal:

Pell Grants - Increase the maximum Pell Grant, which is vital to insuring post-secondary access to the neediest students.
Funding Key Federal Programs - Support funding for the Carl D. Perkins Act career and technical education (CTE) programs, Title III-A, Strengthening Institutions, Hispanic-Serving Institutions, Predominantly Black Institutions; Sustainability Grants; Centers of Excellence for Veterans Success; Rural-Serving Institutions of Higher Education; and Community College Partnership Grants.
Community College Partnership Program - Create a Community College Partnership Program, which President-elect Obama proposed during the campaign.
Streamlining Tax Policy - Support for President-elect Obama’s “American Opportunity Tax Credit.”
Workforce Development - Reauthorize and make the Workforce Investment Act (WIA) a top priority and place a greater role and more capacity with community colleges in the various WIA programs.
Welfare Reform - Amend TANF so that 24 months of an individual's postsecondary education counts toward the state's work participation rate.

In other news, President-Elect Obama announced the nomination of Arne Duncan, CEO of Chicago Public Schools, to be the next Secretary of Education. Mr. Duncan has been the CEO of the system for the past seven years. Additionally, President-elect Obama announced the nomination of Rep. Hilda Solis (D-CA) to be the next Secretary of Labor. Rep. Solis has served in the House of Representatives since 2001. Rep. Solis has a deep understanding about our institutions, having served as a trustee from Rio Hondo Community College, CA.

Community Colleges Submit Economic Recovery and Stimulus Proposal

December 15, 2008—ACCT with AACC issued a joint economic recovery and stimulus proposal to President-elect Barack Obama's Transition team. The proposal is endorsed by 43 state community college systems and associations. In this time of economic uncertainty, the proposal outlines three key areas which will provide immediate relief and stimulus for students and community colleges.

The proposal includes:

1. Maintaining College Access and Affordability

A. We urge the Obama Administration to provide an additional $3 billion to retire the entire current estimated shortfall. The stability of the funding for the Pell Grant program is vital to millions of our neediest students.

B. We urge the Obama Administration to increase the Pell Grant maximum by $700. In the time of economic downturn, our nation needs to step up to help students cover their educations and expenses without incurring large amounts of debt.

2. Enhancing Community College Infrastructure

A. We request $5 billion to assist community colleges to address growing facilities and infrastructure needs. Community college attendance continues to grow, and the crisis in many state budgets has placed an extraordinary strain on our colleges, with many absorbing mid-year cuts. Many community colleges facilities are over 50 years old, and therefore lack the space or technology needed to train the burgeoning numbers of students for jobs in high-demand and high-growth industries.

3. Preparing for High-Paying and High-Demand Jobs

A. We request $1.5 billion to help community colleges fund job training programs to train the workers in such key areas as advanced technology, energy and health care. The nation’s unemployment rate is rapidly rising, yet across the country many employers are unable to find workers with the skills required for available jobs. Effective and well-targeted workforce training programs remain essential to building the nation’s economy.

Click here for the complete proposal.

ACCT Releases HEA Summary

September 2, 2008—Last month, President George W. Bush signed H.R. 4137, the Higher Education Opportunity Act, into law. Now known as P.L. 110-315, the reauthorization of the Higher Education Act significantly increases the reporting requirements for institutions. Below is a brief summary of some of the most important changes for community colleges and their trustees. For more information or to see the whole bill, please visit http://thomas.loc.gov and enter H.R. 4137.

Meanwhile, the Department of Education, as part of the process of implementing the Higher Education Act, has scheduled a series of regional meetings to begin the negotiated rulemaking process. Previously, the Department announced four regional meetings, but has recently added two additional meetings (six total). To see the meeting locations or for further information, visit: http://www.ed.gov/policy/highered/leg/hea08/index.html.

Higher Education Opportunity Act Summary

ACCT has prepared summaries of the following major HEA provisions, all of which have the potential to significantly impact community college and trustees.

Pell Grant program changes
College cost provisions
Consumer information
Accreditation
Maintenance of effort
Textbook information
Peer-to-peer file sharing
Certification regarding the use of federal funds
Transfer-of-credit policy
Code of conduct
New programs: Predominantly Black Institutions, Asian American and Native American Pacific Islander-Serving Institutions; and College Partnership Grants

Pell Grant Program Changes—Summary

The Act increases the authorization level of the Pell Grant maximum to $6,000 for 2009 and increases the maximum to $8,000 in 2014. The Act also establishes year-round Pell Grant for students and increases the Pell Grant minimum from $400 to 10% of the Pell Grant maximum in a given year. Pell Grant eligibility is capped at 18 semesters, but is prorated based upon the student’s attendance status. (Section 401)

Continue reading summaries of the other major provisions of the Act at http://www.acct.org/HEA%20Summary%20Final.pdf.

HEA Passes; Public Meetings to be Held to Discuss Negotiated Rulemaking Process

August 23, 2008—As expected, on August 14th, President George W. Bush signed H.R. 4137, the College Opportunity and Affordability Act(the reauthorization of the Higher Education Act), into law.

Meanwhile, the Department of Education is quickly working to begin the negotiated rulemaking process around the recent reauthorization of the Higher Education Act; specifically, the Department is focusing on the development of all regulations implementing statutory changes to Title IV of the HEA. Here are the dates and locations for the four public meetings.

-September 19, 2008, at Texas Christian University, Fort Worth, Texas

-September 29, 2008, at the University of Rhode Island, Providence Campus, Paff Auditorium, Providence, Rhode Island

-October 2, 2008, at Pepperdine University, Malibu, California

-October 8, 2008, at the U.S. Department of Education, 8th Floor Conference Center, 1990 K Street, N.W., Washington, D.C.

Here is a link to the Department of Education's Web site with the rulemaking information: http://www.ed.gov/policy/highered/leg/hea08/introduction.html.

Congress Passes Higher Education Reauthorization Bill

August 1, 2008—Last night, the Senate passed the Higher Education Reauthorization Bill by a vote of 83-8, with one voting present. This follows approval by the House by a vote of 380-49. The bill will now go to the President for his signature. The President is expected to sign the bill.

The full bill can be found here: http://help.senate.gov/Hearings/2008_07_29_E/KOS08400_xml.pdf

Conference Committee Passes Higher Education Reauthorization Bill; House and Senate to Consider Bill this Week

July 30, 2008—Last night, the House and Senate conferees on the reauthorization of the Higher Education Act passed H.R. 4137, The Higher Education Reauthorization and College Opportunity Act of 2008, by a 40-4 vote. The primary negotiators had been working to resolve some key areas, including the “maintenance of effort (MOE)” provision (please see below for more information).

Congressional staffers indicated that the House and Senate would consider the bill this week. With bi-partisan support, the bill is expected to pass and will be sent the President for his signature. The President is expected to sign the bill.

The major provisions in the HEA bill include:

a) increasing the authorization level for the Pell Grant Maximum, up to $8,000;

b) creating year-round Pell Grants;

c) streamlining the financial aid process, including simplifying the FAFSA;

d) creating a new federal program to support states to develop articulation agreements for public institutions;

e) opening up Pell Grant eligibility to students with disabilities;

f) requiring colleges to provide textbook information, including price for courses before the start of the semester, and requiring that publishers disclose pricing and other information to faculty and offer unbundled course materials with several exceptions;

g) requiring colleges to have code-of-conduct policies for college officials related to student loans;

h) requiring all colleges participating in federal financial aid programs to provide information to the public on 26 data items, ranging from each college's mission to student activity groups;

i) creating Predominantly Black Institutions and Asian and Pacific Islander-Serving Institutions in Title III and will be eligible for institutional aid; and

j) creating programs focused on helping community college students in need of remedial coursework and helping non-traditional students with academic and career goals.

A major theme of the reauthorization is an effort to clamp down on the increasing cost of higher education. The bill would require the Secretary of Education to publish annual “transparency lists” to spotlight institutions and their costs. The "transparency lists" include:

1. a list of the top five percent of colleges with the highest tuition and fees;

2. a list of the top five percent of colleges with the highest net price (total cost of attendance);

3. a list of the top five percent of colleges with the largest increase in terms of percentage in tuition and fees;

4. a list of the top five percent of colleges with the largest increase in terms of percentage in net price;

5. a list of the top ten percent of colleges that have the lowest tuition and fees; and

6. a list of the top ten percent of colleges with the lowest net price.

Colleges that are included in list 3 and 4 would need to prepare a report outlining which costs have increased, an explanation of the costs and the remedies the college is utilizing to reduce costs. Institutions that increase their tuition and fees and net price less than $600 for a three-year period would not need to prepare this report. The exemption was focused primarily on community college.

In addition, Congress included a provision that they hope will ensure that states will maintain the funding level for higher education. A state “maintenance of effort” (MOE) provision would require states to maintain an equal or greater amount of funding than the average amount (over a five-year period). States that fail to meet this provision would be at risk of losing funding for the Challenge Grants, a new program that is currently not funded. States may receive a waiver from MOE from the Secretary.

With the passage of the bill, many of the provisions in the bill will not go into effect until the next academic school year. There is an expectation that Congress will need to do a technical corrections bill next year to address inadvertent provisions. Furthermore, the implementation and regulation of HEA will be the responsibility of the next administration and will be a priority for the 2009 National Legislative Summit.

Congress Works to Wrap Up Action before August Recess

July 24, 2008—With the August Congressional recess looming, the House and Senate are working diligently to complete action on a number of bills, including the reauthorization of the Higher Education Act. It appears that the House and Senate Conference Committee on HEA, which has been negotiating the bill, has made significant progress. There is speculation that the bill may be released next week, with a goal of passing it before Congress leaves Washington. At present, it is unclear what is in the final package because the bill is not available to the public. ACCT will continue to monitor this situation and will send an update when the bill becomes available.

Meanwhile, it appears that the Congressional Appropriations process has grinded to a halt. With House Democratic and Republican leaders unable to agree on the process for completing Labor, Health and Human Services and Education and the Interior appropriations bills, Congress is looking toward a long-term continuing resolution to fund the federal government. The goal is for Congress to pass the appropriations bill when the new president is sworn in.

There is some discussion that Congress may attempt to pass a Supplemental Appropriations bill to help stimulate the economy. This new Supplemental may contain some additional funds for the National Institutes of Health, which may free up dollars for education in the Labor, HHS and Education appropriations bills. Congress passed a Supplemental Appropriations bill earlier this year.

Senate Committee Passes Education Funding Bill

June 26, 2008—Today, the Senate Appropriations Committee passed by voice vote with strong bipartisan support its version of the Fiscal Year 2009 Labor, Health and Human Services, and Education Appropriations bill, which provides $154.9 billion for discretionary programs. The Senate bill, like the House bill, greatly increases the funding level over that of Fiscal Year 2008 and the Administration’s budget request.

The Committee increased the funding level for the Pell Grant program by $2.7 billion, which would restore the discretionary Pell Grant maximum at $4,310. The full Senate is expected to consider the bill pending Committee approval; however, the timetable for consideration is unknown at present.

Below is a list of the funding highlights that impact community colleges:

• $4,310 for the Pell Grant maximum, an increase of $69 (the Pell Grant maximum would be $4,800, which includes the mandatory funding level of $490);

• $125 million for the Community Based Job Training program, level funding; and

• $1.16 billion for State Career and Technical Education Grants (Perkins), including $102.9 million for Tech-Prep, level funding.

House Committee Delays Action on Education Funding

June 26, 2008—Today, the House Appropriations Committee stopped consideration of its Fiscal Year 2009 Labor, Health and Human Services, and Education Appropriations bill. The bill would have provided $157.5 billion for programs under its jurisdiction. The Department of Education is funded at $64 billion. The funding allocation for the Department is almost $5 billion more than the Administration’s request.

During the committee’s consideration, Ranking Member Jerry Lewis (R-CA) asked the committee for a commitment to consider the Interior and Environment Appropriations bill during the week of July 7th. Rep. Lewis wanted the committee to consider an amendment that would allow for offshore oil and gas drilling. Chairman David Obey (D-WI) voiced opposition to the tactic and brought the Labor, Health and Human Services, and Education Appropriations bill for consideration. In response, Rep. Lewis offered an amendment to strip the Labor, Health and Human Services, and Education Appropriations bill and insert the Interior and Environment Appropriations bill. After this transpired, the Committee Democrats offered a motion to adjourn which passed by a party line vote of 35-27. At present, it is unclear when and if the committee will consider the education funding bill. If the committee does not consider the bill, the House would have to use the FY2008 funding levels as their basis for discretionary funding for the upcoming fiscal year which commences October 1st.

A major part of the bill was the funding increase in the Pell Grant program. Pell will receive an increase of $3.1 billion from last year’s funding level, which will increase the Pell maximum by $169. Additionally, the Perkins Career & Technical Education programs were level funded at $1.26 billion, and so was the Community Based Job Training Grant program at $125 million.

Below is a list of the funding highlights that impact community colleges:

• $4,410 for the Pell Grant maximum, an increase of $169 (the Pell Grant maximum would be $4,900 with the mandatory funding level of $490);

• $125 million for the Community Based Job Training program, level funding; and

• $1.16 billion for State Career and Technical Education Grants (Perkins), including $102.9 million for Tech-Prep, level funding.

Senate Subcommittee Restores Pell to $4,310

June 24, 2008—Today, the Senate Labor, Health and Human Services, and Education Appropriations Subcommittee passed by voice vote its Fiscal Year 2009 bill, which provides $154 billion for programs under its jurisdiction. The Senate is providing nearly $1 billion more in its bill than the House.

The subcommittee is increasing Pell Grant funding by $2.7 billion. The program funding level increase would restore the Pell Grant maximum by $69 for a total of $4,310 (which is the FY2007 level). Additionally, the Perkins Career & Technical Education programs was level funded at $1.26 billion, and so was the Community Based Job Training Grant program at $125 million.

The full Senate Appropriations Committee and the House Appropriations Committee are slated to finalize action later this week on their respective bills. It is unclear whether the Senate and House Appropriations Chairmen will attempt to pass the bills in their respective chambers.

House Appropriations Committee Sets Funding Level

June 13, 2008—Today, the House Appropriations Committee released its Fiscal Year 2009 302(b) allocations for the appropriations bills, including $153.1 billion for the Labor, Health and Human Services and Education Appropriations Bill, which is over $8 billion more than the Administration's request. Overall, the allocation is $6 billion over the Fiscal Year 2008 level. The bulk of the funding increase will used to restore funding for a number of programs, including the Perkins Career and Technical Education program and Labor Department programs, and will deal with funding gaps in other programs such as the Pell Grant program.

Congressional staff have indicated that the Pell Grant program will need an additional $2.7 billion to maintain the current Pell Grant maximum funding level. The additional funds will be used to deal with the Pell Grant shortfall and to cover the increase in Pell eligible students.

The House Appropriations Subcommittee is slated to markup the bill next week.

FY2009 Budget Resolution

June 6, 2008—Today, the House of Representatives passed by a vote of 214-210 the FY09 budget resolution. The resolution provides including $1.013 trillion in discretionary spending.

The House Appropriations Subcommittee on Labor, Health and Human Services and Education is expected to markup their bill on June 19, followed by the full committee markup on June 25.

Senate Passes Budget Resolution Conference Report; House to Consider Tomorrow

June 4, 2008—Today, the Senate passed the FY2009 budget resolution conference report. The budget resolution provides $84.4 billion in discretionary funding for the Function 500 (includes education and job training/employment programs), or $8.4 billion over the president’s request and $1 billion over the House request. Additionally, it includes $3.7 billion in advanced appropriations. In total, the resolution provides $1.01 trillion for discretionary spending. The conference report was approved by a vote of 48-45.

The conference agreement provides funds for programs that the Administration had sought to consolidate, including the Perkins Career and Technical Education program. House and Senate leaders have indicated that higher education programs, specifically the Pell Grant program, should receive increases in the upcoming appropriations process.

The House is now slated to consider and pass the conference report tomorrow. The Congressional budget resolution does not need the approval of the Administration. The budget resolution will help guide Congressional appropriators in determining the various funding allocations for each of the appropriations bills.

House and Senate Release Draft Compromise Bill

May 23, 2008—Recently, the House and Senate conference committee on the reauthorization of the Higher Education Act released a draft of a compromise bill. We have been analyzing the bill and we wanted to provide some insight into some of the major provisions. The conference bill is a draft and some of the pieces of the legislation are in flux, such as the textbook provisions and the maintenance of effort for states regarding state aid. We expect to see a finalized version of the bill soon.

First, the things that would affect community colleges and their students positively include the following:

a) year-round Pell Grants;

b) increase in the Pell Grant Minimum;

c) a new grant program geared toward funding institutions and states to develop articulation agreements;

d) simplification of the FAFSA;

e) creation of Asian American- and Native American-/Pacific Islander-serving and Predominantly black institutions (should be included in the final bill) in Title III; and

f) a number of programs geared toward workforce, rural and adult learners (it’s unclear whether these programs will survive).

Second, Congress is making a major effort to clamp down on college costs. The bill would create a series of "transparency lists," which include:

1) a list of the top five percent of colleges with the highest tuition and fees;

2) a list of the top five percent of colleges with the highest net price;

3) a list of the top five percent of colleges with the largest increase in terms of percentage in tuition and fees;

4) a list of the top five percent of colleges with the largest increase in terms of percentage in net price;

5) a list of the top ten percent of colleges that have the lowest tuition and fees; and

6) a list of the top ten percent of colleges with the lowest net price.

These lists would cover all the sectors of higher education. In our case, the lists would be broken down by two-year public institutions. Congress is also looking to provide an exemption for schools by establishing a dollar exemption (as long as colleges keep tuition-and-fees and net price increase under $600 over a three-year period) from lists 3 & 4. Unfortunately, the bill language requires that approximately 60 community colleges (5% of the sector) be on each list. If a college is on lists 3 & 4, the colleges have to prepare reports on the tuition/cost increase various causes and remedies. The colleges will also be listed on the College Navigator Web site as institutions with the highest tuition/cost increase.

Third and overall, there are a number of reporting requirements that will be burdensome to institutions. According to reports, the legislation would create 431 lists for colleges. In addition, all colleges participating in the federal financial aid programs will have to provide information to the public on 26 items, ranging from each college’s mission to student activity groups.

Congress recently passed an HEA extension through end of June. In addition, the sad news regarding Sen. Edward Kennedy’s health has likely pushed up the timetable to complete the bill by June 30.

House and Senate Move Higher Education Act Extension

May 8, 2008—The House and Senate passed S. 2929 to extend the programs authorized under the Higher Education Act through May 31, 2008. The President is expected to sign the legislation. For the past several months, Congress has been working to work out a final conference bill. The Education Committee staff have been meeting to hammer out agreements on various issues. Staff have indicated that they are looking to wrap-up action on the bill by the end of the month.

Appropriations and Budget Process Ongoing

May 7, 2008—Since the House and Senate moved their respective budget resolutions, Congress has been unable to come to an agreement on a FY2009 budget resolution. At a minimum, Congress will need to move a deeming resolution to set the budgetary parameters for the Appropriations Committees. The Appropriations Committee are expected to markup the Labor, Health and Human Services and Education Appropriations bill during the summer. Due to the upcoming elections, Congressional leadership have stated that final appropriations action is unlikely until after the elections.

One major concern for higher education funding is the Pell Grant program. The recent changes in the eligibility for Pell Grants has created a $750 million shortfall in the program. Unless Congress provides additional funds for Pell, it is very likely that the discretionary allocation for Pell will be reduced which will reduce the Pell Grant maximum.

House and Senate Move FY2009 Budget Resolutions

March 13, 2008—Yesterday, the House of Representatives passed its version of the FY2009 budget resolution (H Con Res 312) by a vote of 212-207. The budget resolution provides an increase of $7.1 billion or 9 percent over the President’s FY09 request for education and training. It also includes two deficit neutral reserve funds, one to accommodate a higher education bill to make college more accessible and affordable and one to accommodate a tax credit for school construction.

In addition, the Senate adopted its FY2009 budget resolution (S Con Res 70) by a vote of 51-44. The budget resolution provides $5.4 billion above the President's FY2009 request. The House and Senate are now expected to meet to hammer out a budget resolution which will guide the year's appropriations activities. The President does not need to sign the Congressional budget resolution.

House Passes HEA Reauthorization

Febuary 7, 2008—On February 7, the House of Representatives passed H.R. 4137, the College Opportunity and Affordability Act of 2007, which is the reauthorization of the Higher Education Act by a 354-58 vote.

ACCT supported the House bill which does a number of things that will support community college students and community colleges. The bill does the following:

• Increase the authorized Pell Grant maximum to $9,000, and ensuring that year-round Pell Grants will be provided to certificate and part-time students;
• Streamline the federal aid process;
• Make Academic Competitiveness Grants available to part-time and certificate students as well as permanent resident aliens;
• Reject the “single definition” of institution of higher education, and thereby ensuring that the HEA continues to reflect fundamental differences between non-profit and for-profit institutions;
• Provide new assistance for a variety of critical activities undertaken by community colleges, including teacher training, remedial education, rural development, nursing education, and other activities;
• Facilitate transfer between institutions of higher education.

The House passage of HEA paves the way for the House and Senate to begin conferencing their separate bills. Due to strong bi-partisan support, a final version of HEA is expected to be completed by the end of the year. To view the bill, click here.

Administration Releases FY2009 Budget Request

February 4, 2008—The Administration released its FY2009 budget request for the Department of Education. Overall, the Administration requests a total of $59.2 billion for education programs which was the funding level that was appropriated in FY2008. The budget request would increase the funding for the Pell Grant program increasing the maximum by $69 to $4310. The Pell Grant discretionary total and the mandatory total ($490) would provide for a $4800 maximum.

The budget request seeks to create a new program at the Department that would create a competitive grant program to faciliate the transfer of credits from one institution to another and increase college access through dual enrollment and articulation partnerships between high schools and community colleges. This new program would be funded at $16 million.

Unfortunately, one of the programs slated for elimination is the Career and Technical Education program(including Tech Program). The Administration is voicing concern about the effectiveness of the program. Although the budget request eliminates funding, Congress most likely provide funding for this program because it receives strong bipartisan support.

Program funding levels:
Pell Grant program $16.9 billion, $2.6 billion increase
Pell Grant maximum $4310, $69 increase
Career and Technical Education State Grants $0, $1.16 billion decrease
Strengthening Institutions $78.1 million, level funding
Supplemental Educational Opportunity Grants $0, $757.5 decrease

Additionally, the Department of Labor is seeking $125 million for the Community Based Job Training Grant Program.

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