Wednesday, September 15, 2010

Senate to Vote on DREAM Act!

Senate Majority Leader Harry Reid has announced that the U.S. Senate will consider the DREAM Act as an amendment to the FY 2011 Department of Defense (DOD) authorization act. The DREAM Act, one of AACC’s top legislative priorities since 2001, provides a path to legal status for undocumented students that were brought into the country as children and lets states decide their own policies on in-state tuition for undocumented students. Key votes requiring the support of 60 senators to pass could begin as early as Tuesday, September 21. Please contact your senators ASAP and urge them to vote for adding the DREAM Act onto the DOD authorization bill. More information will follow shortly.

Tuesday, September 7, 2010

Check the AACC Website for the Latest on the Community College and Career Training Program

The Department of Labor is expected to release its Solicitation for Grant Applications (SGA) for the Community College and Career Training Program (CCCTP) in the first half of October. The CCCTP is the Trade Adjustment Assistance Act program that was funded at $500 million per year for four years starting in federal fiscal year 2011, which starts this coming October 1. While the full details of the SGA will not be known until its release, certain elements of the program are coming into focus. AACC is aware of the tremendous amount of interest in this program by community colleges, and we have compiled all the details of the program that we are aware of on our website. This site will be updated as we become aware of further information.

The AACC government relations department will be reviewing this information as part of a free webinar on Wednesday, September 8, 2:00 - 3:00 PM EDT. In addition to the CCCTP, topics will include the gainful employment regulations, the American Opportunity Tax Credit, FY 2011 funding for key programs, the White House community college summit, and the DREAM Act. Please join us tommorow.

AACC Fall Legislative Preview Webinar
When: Wednesday, September 8, 2:00 - 3:00 PM EDT
Register: Click Here

Upon registering, you will receive your personal URL for logging onto the webinar, as well as call-in information for the audio portion.

Thursday, August 26, 2010

Free Webinar September 8 - Fall Legislative Preview

Register now to join the AACC government relations staff as they recap recent legislative developments and look ahead at what remains on the agenda for September and beyond. Topics will include the upcoming RFP for the Community College and Career Training Program, gainful employment regulations, the American Opportunity Tax Credit, the White House community college summit, the education jobs fund, FY 2011 funding for key programs and the DREAM Act.

What: AACC Legislative Webinar

When: Wednesday, September 8, 2010, 2:00 - 3:00 PM EDT

Registration: Click Here

After registering you will receive a confirmation email containing information about joining the webinar, including your personalized URL, phone number and access code.

Wednesday, August 4, 2010

Education Jobs and FMAP Funds Pass Key Senate Vote - Final Passage Expected Soon

Earlier today, the U.S. Senate voted 61-38 to cut off debate and proceed to a vote on final passage of the Murray-Harkin amendment to H.R. 1586. All the Senate Democrats were joined by Republicans Olympia Snowe and Susan Collins from Maine to obtain the 60 votes necessary to end the filibuster on the amendment. This was a key procedural hurdle and paves the way for likely passage of the bill in the Senate before the end of the week, sending it back to the House of Representatives. Anticipating this Senate action, House Speaker Nancy Pelosi has taken the highly unusual step of recalling the House, which had already adjourned for its August recess, for a vote on the bill early next week.

The Murray-Harkin amendment will provide $26 billion to help states deal with the crippling financial situations they are facing. $10 billion of that money is for the education jobs fund, which states can use to retain and hire K-12 teachers and other educational personnel. While the jobs fund does not extend directly to higher education, the maintenance of effort provision that states must comply with to receive these funds does set minimum spending levels for higher education. Many states have reported to AACC that this MOE language was instrumental in avoiding larger cuts to state higher education spending.

The Murray-Harkin amendment also includes $16 billion to extend increases to the federal Medicaid matching funds provided to States that were part of the American Recovery and Reinvestment Act. These increases to the federal medical assistance percentage, or FMAP, were scheduled to cease at the end of 2010. The Murray-Harkin amendment will extend the increase for six additional months.

Taken together, the education jobs and FMAP funds will provide crucial fiscal relief to states, relieving the pressure on them to make cuts in other areas such as higher education.

Please call or email your Representative today and urge them to vote "Yes" on H.R. 1586 when they vote on the bill next week.

Friday, July 23, 2010

Education Department Issues Proposed Regulations on "Gainful Employment" and Other Key Issues

This is a brief update on regulatory activity by the U.S. Department of Education that has major implications for community colleges.

On June 18, the Department of Education released a Notice of Proposed Rulemaking on "program integrity." The regulations cover a wide variety of issues and have generated a great deal of controversy, in part because they are generally targeted at abuses by for-profit institutions. Comments are due on this proposed rule by August 2nd.

AACC has worked closely with the American Council on Education in developing formal comments to be submitted by all of higher education, but it also plans to submit its own comments on issues related to "gainful employment." We encourage you to examine AACC's DRAFT comments and to submit similar comments.

Lastly, earlier today the Department of Education made available a notice of proposed rulemaking that fleshes out its approach on the "gainful employment" issue. This regulation has major implications for community college certificate training programs, and indeed for all of higher education, given that the regulation involves the federal government in new ways in evaluating and determining eligibility for higher education programs. For more information, see Inside Higher Education's story on the regulations and the regulation itself.

AACC will be developing a community college response to this regulation in the coming weeks—comments will be due in early September—and in doing so, will strive to balance the clear need for the Federal government to exert greater quality control over profit-driven institutions, along with the need to ensure that community colleges aren't subject to inappropriate regulations and/or sanctions because of abuses by other institutions.

These issues are complicated and important, and we encourage your engagement with them. Please let us know if you have any questions or comments.

Tuesday, June 15, 2010

Final Legislative Alert! Support Funding for Education Jobs and Pell Grants

As early as this week, the House of Representatives will vote on “supplemental” appropriations legislation for Fiscal Year (FY) 2010 to appropriate additional funds for various purposes, including national defense. AACC, along with the rest of the education community, is fighting to include vitally important funds for education jobs and the Pell Grant program in this legislation. We need your help.

Please email, call or fax your Representative today and urge their support for the education jobs fund and $5.7 billion for the Pell Grant program in the FY 2010 supplemental appropriations bill.

Background Information:

Legislation has been introduced in both the House and Senate to provide $23 billion in aid to states for the purpose of hiring and retaining teachers and other educational staff. These funds would essentially be a more focused extension of the State Fiscal Stabilization Fund created in last year’s economic stimulus legislation. The Senate supplemental appropriations bill, which is the bill that the House will take up, does not include this jobs fund. The House needs to hear strong support from the education community for adding the jobs fund to the supplemental appropriations bill. Furthermore, the latest version of the jobs fund only included K-12 education, and not higher education. While any education jobs fund would likely help community colleges, at least indirectly, higher education should be part of the jobs fund.

AACC is also urging the House to include $5.7 billion to retire a shortfall in the Pell Grant program that has arisen because of the tremendous increase in demand for the grants brought on by the recession. The Student Aid and Fiscal Responsibility Act, passed as part of the health care reconciliation bill earlier this year, retired most, but not all, of this shortfall. Without this additional $5.7 billion in this legislation, the maximum Pell Grant could fall as much as $845 in the 2011-12 academic year.

Talking Points (please tailor to the situation at your institution):

• The Education Jobs Fund is vital to community colleges. These institutions have been squeezed by shrinking state support and increased enrollments, forcing them to layoff faculty, reduce class sections and/or increase class sizes, and slash support services. In many places, thousands of students have been prevented from enrolling in the classes that they need.

• An education jobs fund of any kind helps community colleges by relieving pressure on state budgets in other areas. However, higher education should be explicitly included in a final jobs fund, just as it was in the Jobs for Main Street Act passed by the House last December.

• More than 2.5 million community college students rely on the Pell Grant to help make their education possible. $5.7 billon is desperately needed to ensure that these students do not see a significant cut in their grants, as much as $845.

• Failing to fix the Pell Grant “shortfall” may result in future reductions not only to Pell Grants, but also other student aid, job training and institutional support programs that are vital to community colleges and their students.

Help in contacting your Representatives is available on the AACC website. If you have any questions, please email David Baime, Senior Vice President of Government Relations and Research, or call 202-728-0200 x224; Jim Hermes, Director of Government Relations, x216; or Laurie Quarles, Legislative Associate, x249.

Tuesday, March 16, 2010

AACC Policy Brief: Moving Success from the Shadows

The need for better data on the performance of higher education has become a major focus of education policymakers, and this has been reflected in federal legislation. Community colleges are appropriately held accountable for the workforce outcomes of their students, but the data that are gathered to evaluate those outcomes must reflect the post-college occupational experiences of their students. The latest AACC policy brief “Moving Success From the Shadows: Data Systems That Link Education and Workforce Outcomes” examines the current state of linkages between education and workforce outcomes.

Visit http://www.aacc.nche.edu/Publications/Briefs/Pages/rb03162010.aspx for more information and the full report.

Friday, March 12, 2010

AGI in Jeopardy

Congress is now finalizing how they are going to move forward on the health care bill, having finally decided to use a process called budget reconciliation to pass the plan. The student loan bill, which passed the House last year as the Student Aid and Fiscal Responsibility Act (SAFRA) will likely be part of this package. From the community college point of view, the two most important parts of SAFRA are the American Graduation Initiative and the money it would provide for Pell Grants.

Over the last few days, the landscape has changed dramatically. First, the estimated savings generated from ending the Federal Family Education Loan program in favor of direct lending by the Education Department fell by $20 billion over 10 years, to $67 billion rather than the $87 billion estimated last year. Since SAFRA would use these savings to pay for the AGI, the Pell Grant increases, and other programs, this created a problem for Congressional leaders. Furthermore, the cost of increasing the Pell Grants has risen dramatically. As a result, we are now hearing that the AGI and most other new programs have been stripped from the bill.

AACC has sent an alert to all of its members asking them to weigh in with Democratic Senators to reverse this outcome, and restore AGI to the student loan legislation. The Pell Grant funds are vitally important, but so, too, are the resources that would be provided to community colleges through the AGI. Final decisions on this matter will likely be made today - so time is of the essence for action.

Wednesday, February 17, 2010

President Obama Reflects on H.R. 1, One Year Later

On the one-year anniversary of the signing of H.R. 1, the American Recovery and Reinvestment Act of 2009 (ARRA), President Obama publicly announced that it has been a success, stating that it has saved millions of jobs and raised the percentage of domestic product growth.

Included in the legislation last year was an increase of the Pell Grant Maximun to $5,350 and an increase in Federal Work-Study funding by $200 million. The bill also provided $3.95 billion for training and employment services administered by the Department of Labor and granted $1.25 billion for dislocated workers, $500 million for adult workers and $1.2 billion for youth programs.

Click here for the full article in the Washington Post to view Obama's thoughts on the year following the signing of H.R 1 .

Monday, February 1, 2010

AACC Releases Summary of Key Aspects of the Obama Administration's FY11 Budget

The administration released its FY11 budget earlier today, and AACC has just posted this summary of the budget's highlights to its website. The summary covers funding requests for the most important programs to community colleges, including student aid, institutional assistance, job training and others. We will continue to update and expand on this information, but wanted to make sure that you had the basic information as soon as possible. Please let the AACC government relations team know if you have any questions.

Tuesday, January 26, 2010

Latest on the AGI Status

When the Senate will consider legislation containing the American Graduation Initiative (AGI) remains unclear. According to accounts today in the New York Times and Congressional Quarterly, Congressional Democrats are actively considering a plan by which they would pass final health care reform legislation by a process known as budget reconciliation, which would allow the Democrats to pass the legislation in the Senate with only 51 votes. The AGI legislation, which includes several other funding components, is also budget reconciliation legislation. Under the terms of the FY2010 budget, the Senate can pass only one reconciliation bill, so the Senate Democrats must hold the AGI legislation until the health care debate is resolved. Should they choose to use reconciliation to pass health care, it would be joined with the AGI legislation.

The victory of Republican Scott Brown in last week’s special election in Massachusetts for former Senator Edward Kennedy’s seat robbed the Democrats of their filibuster-proof 60-vote majority in the Senate, thereby complicating their strategy for passing health care reform. The Brown victory left Congressional Democrats with two other options in addition to reconciliation to avoid a Senate filibuster on final health care legislation. The House could simply pass the Senate bill and send it to the President for his signature, an option that was rejected by Speaker Pelosi last week because of opposition by some House democrats to certain portions of the Senate bill. The Democrats could also retreat from the larger health care package and fashion smaller-scale legislation that would garner enough Republican support to get 60 votes in the Senate, a tact that some Democrats seem to favor.

For now, though, the reconciliation option is very much in the mix, meaning that the AGI legislation will continue to wait until the reconciliation option is either used or taken off the table. The situation is fluid and once decisions are made, however, action on both the health measure and education bill could occur very quickly.

Friday, January 15, 2010

AACC Urges Senate to Include Education Jobs and Workforce Training Funds in Jobs Bill

As many of you are aware, the House of Representatives passed a jobs bill last month that could greatly benefit community colleges by providing funds for retaining and hiring additional college staff and for workforce training programs. (AACC's summary of that bill can be found on the AACC website).

Yesterday, AACC sent
a letter to the Senate Democratic leadership urging them to include similar provisions in jobs legislation that they plan to introduce soon. Although the jobs bill has not generated a great deal of attention, it stands a reasonable prospect of providing significant financial relief for at least some of our colleges. Despite the abysmal federal budget landscape and the pressures against greater deficit spending, Congress and the Administration are aware of the dire state budget situation, and are further aware that states cannot print money to remedy the situation.

Also, it is important to remember that the jobs legislation provides actual funding. H.R. 4196, the Emergency Community College Financial Stabilization Act, which AACC supports, is an authorization bill that does not provide any money, in and of itself. Therefore, we believe it is best to concentrate efforts at this time on actually securing funds, while working to refine and broaden the base of support for H.R. 4196. Ideally, the community college focus of H.R. 4196 will be reflected in the jobs bill.


Thanks for your attention to this important matter.


David Baime
AACC Senior Vice President of Government Relations and Research

Tuesday, January 12, 2010

Latest Webinar Slides on AACC Website

For those of you who could not make it to the January 7 webinar - Community College Federal Legislative Priorities in 2010 - the slides are available on the AACC website .

As you can see in the presentation, 2010 is shaping up to be a very busy year on the legislative front. After the dust settles on health care, the Senate is prepared to move ahead with budget reconciliation legislation containing the American Graduation Initiative. We hope to see action on reauthorization of the Workforce Investment Act shortly after that. The jobs bill is now in the mix as well. Immigration and welfare reform, education tax credits, and reauthorization of the Elementary and Secondary Education Act all remain on the longer-term agenda. And of course, we will continue to advocate for our annual funding priorities.

Happy New Year, and here's to an eventful 2010.

Monday, October 19, 2009

Register Now for the AACC AGI Webinar

Register Now for the AACC Webinar:

"The American Graduation Initiative: Senate Legislation and How to Influence the Final House-Senate Conference Bill"

Thursday, November 5, 2009
2:00 - 3:00 p.m. EDT

Register at https://www2.gotomeeting.com/register/915956650

The American Graduation Initiative (AGI) passed the House in September as part of the Student Aid and Fiscal Responsiblity Act (H.R. 3221). The Senate is expected to introduce and act on legislation soon.

David Baime, AACC Vice President for Government Relations, will detail the contents of the Senate bill and inform you about how to influence the final version of this crucial legislation. Learn the differences between the House and Senate bills on key issues such as the structure of AGI grant programs, accountability measures, and allowable uses of renovation and construction funds.

The voices of community colleges will be vital in the final stages of this legislative debate, so get up to speed on all the issues by participating in this webinar!

Upon registering at the link above, you will be provided with all of the information you need to participate in the webinar, including your unique URL and call-in information. We look forward to your participation on November 5.



American Association of Community Colleges
One Dupont Circle
Washington, DC 20036
United States

Tuesday, September 29, 2009

Register Now for AACC's Washington Institute

The Washington Institute is designed expressly for community college officials who want an insider's view of how Washington works. Sessions at this intensive seminar will address how colleges can get targeted federal resources, influence legislation, shape media coverage, and understand the role that associations and think tanks play in federal policy debates.

The Washington Institute provides a timely opportunity to gain valuable insights from high-level Washington insiders as well as from institutional colleagues to enhance your advocacy efforts. Learn more about pending federal policies and how you can influence legislative and regulatory decisions.

Participants will have direct access to several key policymakers in the Nation's capital, who will share their views on the latest higher education developments. Community college presidents, government relations directors, and other senior campus officials are strongly encouraged to take advantage of this innovative professional development opportunity.

Registration is available online at http://www.aacc.nche.edu/newsevents/Events/washingtoninstitute/Pages/default.aspx

For more information, contact Katharine Carter, Legilsative Information Specialist,
at (202) 728-0200, ext. 225, or kcarter@aacc.nche.edu

Thursday, September 17, 2009

House Passes H.R. 3221!

This afternoon, by a vote of 253 to 171, the U.S. House of Representatives passed H.R. 3221, the Student Aid and Fiscal Responsibility Act. The vote occurred largely on a party-line basis—just six Republicans and three Democrats abandoned their parties on the vote for final passage.

H.R. 3221 contains the American Graduation Initiative, an historic federal investment in community colleges, as well as guaranteed increases in the Pell Grant maximum, and funding for HBCUs and Hispanic-Serving Institutions. The legislation derives funds for these initiatives by requiring that all institutions begin participating in the Direct Loan program by July 1, 2010.

As part of the floor action, the House approved a manager's amendment, offered by House Education and Labor Committee chairman George Miller (D-CA), that includes a series of changes sought by AACC. It limits the quantitative benchmarks that colleges that receive AGI grants must set and meet. Under the original bill, the benchmarks could have been interpreted much more broadly and required unreasonable amounts of tracking and reporting. In addition, AACC secured language that requires that, in order for States to receive funding under the American Graduation Initiative, they must establish and implement comprehensive articulation agreements.

AACC also worked with Reps. Chellie Pingree (D-ME) and Mike Ross (D-AR) on their amendment to ensure that colleges that received funding under the American Recovery and Reinvestment Act (ARRA) were not denied facilities funding under the legislation. The House also approved amendments to bolster the bill's financial literacy provisions and strengthen services and priorities for veterans and dislocated workers. The House rejected amendments that would have stripped the American Graduation Initiative and construction funds from the bill. The amendment to eliminate the American Graduation Initiative was offered by Rep.Virginia Foxx (R-NC) and received 126 votes, all Republican.

A summary of the legislation can be found on AACC's Web site.

The action now moves to the Senate, where the Health, Education, Labor and Pensions Committee must approve companion legislation by October 15. Senate legislation is expected to be introduced soon, as early as next week, with a committee markup shortly thereafter.

Monday, September 14, 2009

Alert! H.R. 3221 Vote Coming This Week

Urge Your Representative to Vote for H.R. 3221!

This week, H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, will be brought to the House floor for a vote. This landmark legislation contains the American Graduation Initiative, the $12 billion initiative proposed by President Obama and focused on community colleges. This is the largest single Federal investment ever made in community colleges. AACC strongly supports H.R. 3221 and urges you to contact your Representative to ask for their vote for the bill.

H.R. 3221 includes the following:

• $6.3 billion in grant funding to community colleges over the next ten years;
• $2.5 billion in facilities funding, made available on October 1, 2010;
• Guaranteed annual increases in the Pell Grant maximum, to ensure that it continues to grow faster than inflation;
• Guaranteed funding for Hispanic-Serving Institutions;
• Simplification of the application form and process for Federal student aid

You can contact your contact your Representative through http://www.congressweb.com/cweb4/index.cfm?orgcode=aacc&hotissue=1000. Also, you can find more information on this legislation on the AACC Web site.

*******************************************************
Register Now for the American Association of Community Colleges' Washington Institute!
November 8-10, 2009
The Washington Court Hotel, Washington, D.C.

AACC's Washington Institute provides an insider's view of how Washington works. Sessions will address targeting federal resources, influencing legislation, and shaping media coverage. Join AACC in advocating for President Obama's American Graduation Initiative. Register online, and receive updated information at AACC's Web site! For more information, please contact Katharine Carter at (202)728-0200, ext. 225 or kcarter@aacc.nche.edu.***ERROR*** (#malformed)
American Association of Community Colleges
One Dupont Circle
Washington, DC 20036
United States

Friday, September 4, 2009

Congress Comes Back Next Week

Congress returns next week from its annual August recess to a daunting agenda. Health care reform legislation will top that list, with President Obama addressing a joint session of Congress on that topic on September 9. Congress will also have to finalize the appropriations bills for fiscal year 2010, which begins on October 1, although that process will certainly not be concluded by then. Energy legislation is also near the top of many legislators' wish lists for completion this year.

Also near the top of the agenda is the higher education budget reconciliation legislation that contains President Obama's American Graduation Initiative. Before the August recess, the House Education and Labor Committee passed their version of this legislation, H.R. 3221. The full House is expected to take up this legislation in the next few weeks.

Senate staffers have been busy over the recess crafting their version of this important legislation, and we expect that it will be introduced by late September. The FY 2010 budget sets an October 15 deadline for the Senate Health, Education, Labor and Pensions committee to report out their bill.

AACC has voiced strong support for H.R. 3221, with its substantial infusion of resources into the nation's community colleges. However, we continue to seek improvements to this legislation in key areas, as detailed on the AACC website. The AACC government relations staff recently concluded its first webinar on the American Graduation Initiative, and plans to conduct two more. We'll be getting out the details soon. There will also be on online jam in support of the initiative on September 16.

Monday, July 27, 2009

AACC Summary of H.R. 3221

Below is a summary of major provisions of H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, as reported by the House Education and Labor Committee last week:

COMMUNITY COLLEGE PROVISIONS

College Modernization and Construction (Section 351)

$2.5 billion is provided in Fiscal Year 2011 to states for new community college facilities and modernizing, renovating, and repairing existing facilities. Grants can be used to:

• Reduce the financing cost of loans (such as paying interest or points on loans)
• Provide matching funds for community college capital campaigns
• Capitalize a revolving loan fund

Federal funds cannot exceed 25% of the cost of the reduced interest or matched funds.

Funds are to be distributed to states based on their relative share of the nation’s community college student enrollment. The statute appears to give states broad discretion to award funds to community colleges. Funds must be used by states to supplement, not supplant, existing funding. In addition, community colleges that received facilities funding under the American Recovery and Reinvestment Act (ARRA) or the Higher Education Act are not eligible for funding.

Grants to Eligible Entities for Community College Reform (Section 503)

$630 million per year, through FY 2013, is made available to “eligible entities” to compete for four year grants (minimum grant is $750,000) to support innovative programs or programs of demonstrated effectiveness that lead to the completion of a postsecondary degree, certificate, or industry recognized credential leading to a skilled occupation in a high-demand industry. In addition to community colleges and consortia thereof, states, area career and technical centers, and four-year colleges that serve areas not otherwise served by a community college are eligible to compete for funds; states cannot receive more than 50% of overall funding. Eligible entities must match funds provided by the Federal government, but in-kind contributions, broadly defined, may be used for the match. Hardship waivers may be granted.

Priority is given to applicants that: 1) enter into partnerships with: philanthropic or research organizations with expertise in the area of the program; businesses that help design and underwrite the program; labor organizations that provide technical expertise in programs leading to an industry credential in a high-demand industry; 2) serve non-traditional students as defined in the law; or 3) are Title III- or Title V-eligible as defined in the Higher Education Act (or are part of a consortia including one of those institutions). Among other things, applicants must partner with the state employment services and local Workforce Investment Boards.

Funds can be used for:

• Expanding opportunities for students to earn bachelor’s degrees;
• Academic or training programs, which shall be carried out in partnership with employers
• Providing student support services
• Creating workforce programs that lead to industry-recognized credentials
• Building or enhancing dual enrollment programs and early college high schools

Each eligible entity must develop quantifiable benchmarks, to be approved by the Secretary. An entity will not be able to receive the final, fourth year of funding if it has not made “demonstrable progress” towards meeting the benchmarks after three years. The benchmarks are:

1) Closing gaps in enrollment and completion rates for: groups underrepresented in higher education and groups of students at the institution who have the lowest enrollment and completion rates

2) Meeting local and regional workforce needs

3) Establishing articulation agreements between two-year and four-year public institutions of higher education within a State

4) Improving comprehensive employment and educational outcomes for postsecondary programs, including:

• Student persistence between academic years
• Number of credits earned
• Number of students in developmental education courses who subsequently enroll in credit courses
• Transfer of general education credits between institutions, as applicable
• Completion of industry-recognized credential or associate degrees to work in high-demand industries
• Transfer to four-year institutions
• Job placement related to skills training or associate degree completion.

Also, “to the maximum extent practicable,” each community college receiving a grant shall include in each electronic and printed publication of the college’s course schedule, for each course listed in the course schedule, whether such course is transferable for credit toward completion of a 4-year baccalaureate degree at a public institution in the State.

Grants to States to Implement the Systematic Reform of Community Colleges (Section 504)

Beginning on October 1, 2013, $630 million is provided annually to states to apply for grants to engage in the systematic reform of their community colleges, by carrying out the programs, services, and policies that are found by the Federal Institute of Education Sciences, after a study based on the grants awarded under Section 503 above, to have “demonstrated effectiveness.” States must have longitudinal data systems that include community colleges and meet other criteria in order to be eligible for funding. A state shall lose its funding if it has not made “demonstrable progress” in meeting quantitative benchmarks after three years.

Federal funds can comprise only half the cost of the reform programs, though financial hardship waivers are available. Federal funds must be used to supplement, not supplant, State funding. As per an AACC legislative recommendation, 90% of the state funds are to be provided directly to community colleges.

Learning and Earning Research Center

A grant shall be made to a non-Federal organization with demonstrated expertise in the research and evaluation of community colleges. The grantee is charged with a number of activities, including judging the effectiveness of community colleges and developing metrics and data elements to measure the education and employment outcomes of community college students. The center is also directed to develop standardized data gathering systems, emphasizing linkages between states.

State Data Systems

Grants are made available to States or consortia of States to establish cooperative agreements to develop, implement, and expand interoperable statewide longitudinal data systems.

STUDENT AID PROVISIONS

Pell Grants

The Pell Grant maximum is steadily increased from $5,550 in FY 2010 (funding the 2010-11 award year) to $6,900 in FY 2019. The entire program is not made an entitlement, as proposed by President Obama; rather, some $40 billion of savings from the legislation is used to augment funding provided through the regular appropriations process.

Federal Family Education Loan (FFEL) Program

The bank-based FFEL program is phased out as of July 1, 2010, at which time all institutions will have to participate in the Direct Loan (DL) program, under which loan capital is provided by the Federal government rather than banks. A limited number of private lenders will service the loans but cannot originate them. State guaranty agencies retain a role in outreach, financial literacy, and default prevention.

Perkins Loan Program

The bill restructures the Perkins Loan Program, making it essentially a second, unsubsidized Direct Loan program that is campus-based, with the goal of providing an additional $5 billion in Perkins loans. Historically, community colleges have not generally participated in this program.

The institutional allocation formula, i.e., Perkins loan lending authority, is complex. Half of the funding is based on institutional need and funding for holding past participants harmless. The other half of the formula incorporates incentives, at one-quarter each, for low tuition and improved Pell recipient graduation rates.

Stafford Loan Interest Rates

The bill provides $3.25 billion to change the fixed interest rates on subsidized loans to a variable rate. In recent years the interest rate on these loans, currently at 5.6 percent, has decreased and will ultimately drop to 3.4 percent. However, the rate is set to revert to 6.8 percent in 2012. This provision ensures that borrowers get the lowest current interest rate, not to exceed 6.8 percent. Interest rates for unsubsidized and PLUS loans are unchanged.

Free Application for Federal Student Aid (FAFSA) Simplification

Changes to the need analysis formula allow student aid applicants to simply use IRS data for the purpose of completing the FAFSA. For those with less than $150,000 in assets, the bill would eliminate assets from the need calculation for federal student aid. (A recent Department of Education study indicated that income level was sufficient to determine eligibility.) The value of a family's house, farm, business, or employee pension benefit plan would not be included in calculating whether a family's assets exceed the cap. It is unclear how the asset information will be collected.

OTHER PROGRAMS

Additional Funding for HBCUs and Hispanic-Serving Institutions (HSIs)

The bill includes $2.5 billion in guaranteed funding for Historically Black Colleges and Universities (HBCUs) and Hispanic-Serving Institutions over FYs 2010 through 2019. The HSI funding is to be targeted to STEM programs and articulation.

Open Online Education

The Department of Education will make competitive grants for the development, evaluation, and dissemination of freely-availably online training and high school and postsecondary education courses. $50 million is made available for each over FYs 2010-2019.

New Grants for Access, Completion, and Persistence Grant Programs

The legislation provides $600 million annually for FYs 2010 to 2014 for a "College Access and Completion Fund" to: promote innovation in postsecondary education practices and policies by institutions of higher education, States, and nonprofit organizations to improve student success, completion, and post-completion employment, particularly for students from groups that are underrepresented in postsecondary education; and to assist States in developing longitudinal data systems, common metrics, and reporting systems to enhance the quality and availability of information about student success, completion, and post completion employment.

Funds are to be allocated as follows:

• 25 percent for formula/matching grants to states and philanthropic organizations for access and persistence activities under the current College Access Challenge Grant Program.
• 50 percent for new competitive matching grants for states to develop innovative plans for college completion, including state plans that embrace all higher education sectors and longitudinal data systems.
• 23 percent for federal discretionary grants - open to a wide range of organizations - for innovative access and persistence activities. Individual grants would be no less than $1 million, and could be more if matched by philanthropies.
• 2 percent for evaluation.


For more information contact David Baime, Vice President for Government Relations, dbaime@aacc.nche.edu, or 202-728-0200, ext. 224.

Tuesday, July 21, 2009

House Committee Approves H.R. 3221

The House Education and Labor Committee has just approved H.R. 3221, budget "reconciliation" legislation that contains the new community college initiative announced by President Obama last week, as well as additional funding for Pell Grants and other programs. The committee approved a number of amendments, including some to modify the community college initiative. Amendments to the legislation included those dealing with the following issues:
  • ensuring 90% of funds to states in the latter years of the community college initiative would be passed through to community colleges.
  • provisions to emphasize sector-based workforce development approaches.
  • tuition reimbursement policies for students called up to active military duty.
  • enactment of some workforce development and veterans programs similar to those found in the Higher Education Opportunity Act.

Details at this moment are scant, so check back in with the AACC Government Relations Blog and AACC website in the coming days for more information. It is not yet known when the full House will consider this legislation, but the Senate is not expected to take up a companion bill until September.