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
Tuesday, September 29, 2009
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.
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.
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.
Friday, July 17, 2009
Community College Initiative in House Budget Reconciliation Bill
On July 15, Representative George Miller (D-CA), Chairman of the House Education and Labor Committee, introduced H.R. 3221, the “Student Aid and Fiscal Responsibility Act of 2009.” The legislation includes far-reaching reforms to the student aid programs and also includes a separate Title dedicated to community colleges.
The Committee’s summary of the bill, with related links, can be found on its website. The bill itself can be found at the Library of Congress's Thomas website by doing a search for H.R. 3221.
The legislation’s most notable feature is its elimination of the bank-based Federal Family Education Loan Program (FFELP) and its requirement that all colleges participate in the Direct Lending (DL) program, starting in July, 2010. The budgetary savings of some $87 billion that are projected from this change are directed to a variety of programs, including infusing $40 billion into the Pell Grant program.
The legislation also includes a landmark Community College Initiative. For community colleges, the legislation includes essentially three pieces—two grant programs, designed to dramatically enhance community college performance and productivity, and a facilities initiative. These are an outgrowth of President Obama’s “American Graduation Initiative.”
Highlights of these three new community college programs, all of which are guaranteed funding under the legislation as it uses “mandatory” funding, are as follows:
Grants to Eligible Entities for Community College Reform (Section 503)
This competitive grant program is funded at $630 million per year for each of the next four fiscal years. Community colleges, institutional consortia, and states (who can receive no more than half of the funds) can compete for four-year grants, with a minimum grant of $1,000,000, and a 50% match (with a waiver for financial hardship). Grants could be used for a variety of purposes that would enhance graduation or similar credential attainment. Grantees would have to develop and make demonstrable progress towards meeting a series of benchmarks approved by the ED Secretary, including: closing enrollment and graduation gaps; addressing workforce needs; and improving employment and educational outcomes along 7 indexes. Grantees that failed to meet their benchmarks would risk losing their grants.
Grants to Eligible States for Community College Programs (Section 504)
In Fiscal Years 2014-2019, $630 million in grants would be made to states for “systematic reform of junior and community colleges.” These reforms are to be driven by a study conducted by the Institute for Education Sciences (IES) that is required by the bill; the IES is to develop recommendations derived from the data gathered through the grants awarded under Section 503. As with that program, states would have to meet benchmarks and could lose funding if those benchmarks are not met. AACC has requested that language be added to the bill that would ensure that a high percentage of these state funds would ultimately be provided to institutions.
Federal Assistance for Community College Modernization and Construction (Section 351)
$2.5 billion is made available to States in FY 2011 for the construction, modernization, renovation and repair of community college facilities. Funds could be used to reduce financing costs or to provide matching funds for capital campaigns, or to capitalize a revolving fund. Funds would be allocated to states on the basis of their community college enrollments and the funds could cover only 25% of the costs of financing the projects.
Other Provisions
The legislation also creates a new “College Access and Innovation Fund,” funded at $500 million for five years, as requested by the President; and gives additional funding to the Hispanic-Serving Institutions program. It expands the Perkins Loan program, which should result in more funding being made available for community college students.
Timetable for Action
The House Education and Labor Committee has scheduled a markup (amending and approval process) on this legislation for Tuesday, July 21st. It is expected to be approved at that time. The legislation will then be considered by the full House, probably not until September, but possibly before. The Senate Health, Education, Labor, and Pensions Committee is not expected to act on its legislation until September.
For more information, contact David Baime, AACC VP of Government Relations.
The Committee’s summary of the bill, with related links, can be found on its website. The bill itself can be found at the Library of Congress's Thomas website by doing a search for H.R. 3221.
The legislation’s most notable feature is its elimination of the bank-based Federal Family Education Loan Program (FFELP) and its requirement that all colleges participate in the Direct Lending (DL) program, starting in July, 2010. The budgetary savings of some $87 billion that are projected from this change are directed to a variety of programs, including infusing $40 billion into the Pell Grant program.
The legislation also includes a landmark Community College Initiative. For community colleges, the legislation includes essentially three pieces—two grant programs, designed to dramatically enhance community college performance and productivity, and a facilities initiative. These are an outgrowth of President Obama’s “American Graduation Initiative.”
Highlights of these three new community college programs, all of which are guaranteed funding under the legislation as it uses “mandatory” funding, are as follows:
Grants to Eligible Entities for Community College Reform (Section 503)
This competitive grant program is funded at $630 million per year for each of the next four fiscal years. Community colleges, institutional consortia, and states (who can receive no more than half of the funds) can compete for four-year grants, with a minimum grant of $1,000,000, and a 50% match (with a waiver for financial hardship). Grants could be used for a variety of purposes that would enhance graduation or similar credential attainment. Grantees would have to develop and make demonstrable progress towards meeting a series of benchmarks approved by the ED Secretary, including: closing enrollment and graduation gaps; addressing workforce needs; and improving employment and educational outcomes along 7 indexes. Grantees that failed to meet their benchmarks would risk losing their grants.
Grants to Eligible States for Community College Programs (Section 504)
In Fiscal Years 2014-2019, $630 million in grants would be made to states for “systematic reform of junior and community colleges.” These reforms are to be driven by a study conducted by the Institute for Education Sciences (IES) that is required by the bill; the IES is to develop recommendations derived from the data gathered through the grants awarded under Section 503. As with that program, states would have to meet benchmarks and could lose funding if those benchmarks are not met. AACC has requested that language be added to the bill that would ensure that a high percentage of these state funds would ultimately be provided to institutions.
Federal Assistance for Community College Modernization and Construction (Section 351)
$2.5 billion is made available to States in FY 2011 for the construction, modernization, renovation and repair of community college facilities. Funds could be used to reduce financing costs or to provide matching funds for capital campaigns, or to capitalize a revolving fund. Funds would be allocated to states on the basis of their community college enrollments and the funds could cover only 25% of the costs of financing the projects.
Other Provisions
The legislation also creates a new “College Access and Innovation Fund,” funded at $500 million for five years, as requested by the President; and gives additional funding to the Hispanic-Serving Institutions program. It expands the Perkins Loan program, which should result in more funding being made available for community college students.
Timetable for Action
The House Education and Labor Committee has scheduled a markup (amending and approval process) on this legislation for Tuesday, July 21st. It is expected to be approved at that time. The legislation will then be considered by the full House, probably not until September, but possibly before. The Senate Health, Education, Labor, and Pensions Committee is not expected to act on its legislation until September.
For more information, contact David Baime, AACC VP of Government Relations.
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