Author Archives: garverj

U.S. Senate Budget Committee Hears the Obama Administration’s Proposed FY12 Budget

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Yesterday U.S. Education Secretary Arne Duncan  presented President Obama’s FY 12 budget to members of the U.S. Senate Budget Committee.

The president’s budget would boost FY2012 discretionary spending for Pell Grants by $5.4 billion above spending levels in the FY2011 continuing resolution (CR) that is set to expire on March 4.  The increased funding would bring the total FY2012 discretionary funding for Pell to $28.6 billion.

The administration proposes reining in the cost of the Pell Grant program in FY2012 by eliminating the newly enacted “year-round” Pell Grant program that is designed to accelerate a student’s time to completion. The president’s budget would also eliminate interest subsidies for graduate student loans and direct those savings to the Pell grant program. The administration projects that its proposal — known as the Pell Grant Protection Act — would reduce the discretionary need for the Pell Grant program by $100 billion over the next 10 years. Legislative text for the Pell Grant Protection Act has yet to be released.

Senate Budget Committee Chairman Kent Conrad (D-ND) highlighted the challenge that growth of the Pell Grant program presents to Congress.

“The rising cost of college has outpaced the increases in the Pell award,” he said. “At the same time, due to the recession and increased demand for Pell grants, as well as changes that we made as to who qualifies, the cost of the program has increased. So, we’re paying a smaller share of the cost of college, but the overall cost of the Pell program has increased.”

Republicans argued that the administration’s proposal does not go far enough to rein in Pell spending.

“In 2008, we provided Pell Grants for 6 million, now we’re providing Pell Grants, under your proposal, for 9.6 million, doubling the entire budget and we don’t have the money,” said the committee’s Ranking Republican Sen. Jeff Sessions (R-AL). “You haven’t cut Pell Grants. Pell Grants are increasing dramatically.”

U.S. Senate Passes Stopgap Legislation

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This morning the Senate voted – 91 to 9 – to keep the federal government operating another two weeks through March 18 and cut $4 billion from the federal budget.    

The U.S. House of Representatives passed the two-week continuing resolution (CR) yesterday.

Education programs received a disproportionate 22 percent of the cuts, but the maximum Pell Grant would remain at $5,550 under the bill.

The only student aid cut in the bill was the elimination of funding for the Leveraging Educational Assistance Partnership (LEAP) program. This cut would provide $64 million in savings.   The bill would also make cuts several cuts to unfunded earmarks proposed by President Obama in his FY 2012 budget.

 The measure now goes to President Obama, who is expected to sign it.

U.S. House Passes Short-Term Stopgap Legislation

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Today the U.S. House of Representatives passed emergency short-term legislation  to reduce  federal spending by $4 billion.

The bill that cleared the House on a bipartisan vote of 335-91 eliminates the threat of a shutdown on March 4, when existing funding authority expires. At the same time, it creates a compressed two-week timeframe for the White House and lawmakers to engage in negotiations on a follow-up bill to set spending levels through the end of the fiscal year.

The Senate is set to vote on the short-term measure tomorrow morning, the final step before it goes to President Barack Obama for his signature.

The White House, which earlier in the day called publicly for an interim measure of up to five weeks, stopped short of saying the president would sign the legislation.

U.S. House Education Committee Holds Hearing on Regulatory Burdens at the Federal Level

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On Tuesday the U.S. House education committee held the first in what is expected to be a series of hearings on the regulatory burden on colleges and schools.

In an opening statement, Rep. John Kline of Minnesota, the panel’s chairman, promised to root out rules that “hinder job creation and economic growth.”

Much of the hearing focused on education mandates imposed on elementary and secondary schools under the No Child Left Behind Act.

But lawmakers also heard from Christopher B. Nelson, president of St. John’s College, in Maryland, about the “massive” federal regulation of higher education. He urged Congress to apply its “pay as you go” budget rules to regulation, eliminating old requirements as new ones are added. “There are things we are measuring because they can be measured, not because they are good, and those are the most dangerous,” he said.

Mr. Nelson drew sympathy from Mr. Kline, who said he knew regulations were “a real burden” on colleges. “We want to get at that,” he added.

2011 Legislative Session: Week 8

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This week the Legislature will turn its focus to the chamber floors.

On Friday, the Legislature passed another major deadline requiring all fiscal related bills to move from an appropriation committee to the floor.

With that in mind, this week’s schedule includes limited committee meetings with most of the time spent on the House and Senate floor as another major deadline looms.

Both the House and the Senate must move bills from the chamber in which the legislation originated to the opposite chamber by end of day March 7.

What is Going on in D.C. with Higher Education Funding?

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Over the past month Congress has taken a series of steps that would impact federal funding for higher education.

On February 19 the U.S. House passed a seven-month long continuing resolution (H.R. 1) to fund federal programs for the remainder of FY2011. H.R. 1 reduced spending by almost $60 billion compared to FY10 spending levels.  Among the reductions included in H.R. 1 are several that would reduce funding for higher education.

  • Reduces discretionary-funded maximum awards for the Pell Grant from $4,860 to $4,105.  When the mandatory funds ($690) are considered the 2011-12 maximum Pell Grant award would be $4,705. This is a 15% decrease from 2010-11;
  • Makes proportionate reductions to awards below the maximum;
  • Reduces Pell eligibility for some of the highest eligible Expected Family Contribution groups;
  • Prohibits the U.S. Department of Education from using FY11 appropriations to implement, administer, or enforce gainful employment regulations;
  • Provides no funding for the Federal Supplemental Educational Opportunity Grant (FSEOG) and the Leveraging Educational Assistance Partnership (LEAP). Both programs provide financial grants to students who qualify for financial aid; and
  • Reduces President Obama’s proposed FY11 budget request by $100 billion.

An unintended consequence of the reduction to the Pell Grant included in H.R. 1 is the potential for the bill to trigger a provision in last year’s student-loan-overhaul law that conditions additional support for the Pell on Congress’ maintaining a “base” maximum award of $4,860. Under the overhaul, if lawmakers reduced the base below $4,860 the Pell Grant would become ineligile for mandatory “add ons” to the maximum starting in 2014.

According to an analysis by the Center on Budget and Policy Priorities, reducing the base by $845 to $4,105 as H.R. 1 proposes would result in the loss of $870 in mandatory money in 2014. Taken together, those reductions would cut the maximum award from the current $5,550 to $4,025.

The Senate has indicated that the reductions in H.R. 1 are too deep and are expected to release their version of a spending bill this week. It is expected that the Senate version will include nearly $25  billion in reductions, most of which were proposed by the Obama administration’s FY12 budget request. 

Despite all of this Congress has only five days to agree on a FY11 spending bill before the current continuing resolution bill expires on March 4 (this Friday). 

In a move that could temporarily prevent a government shutdown, if no agreement is reached by March 4, the House Republicans have proposed a short-term extension of federal funding that would continue to fund most federal programs at current levels for an additional two weeks (until March 18). In addition the extension would trim $4 billion from the budget. 

The reductions in the short-term Republican funding bill include earmarks that Congress had already agreed not to continue and programs that the President targeted for elimination in his FY12 budget, including LEAP. 

Senate Democrats have signaled some acceptance to the short-term proposal to allow more time to negotiate out a FY10 bill.

Federal Hearing on the Burden of Federal Education Regulations

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Tomorrow the U.S. House Education and Workforce Committee will hold a hearing to discuss the burden on K-12 and higher education institutions casued by federal education regulations.

The hearing, titled “Education Regulations: Weighing the Burden on Schools and Students” will feature testimony from the Council of Chief State School Officers, Loudoun County Public Schools, St. John’s College, and The Education Trust.

According to the Committee, this meeting is intended to “examine the scope of federal education mandates, including data collection requirements and paperwork burdens, and analyze how compliance with these mandates creates unnecessary hurdles for K-12 schools, colleges, and universities.”

Despite the Snow Appropriation Committees Plow Ahead

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While much of Olympia was quiet and covered in snow, the Capitol was busy hearing and moving bills through the process. Both the Senate and House Ways & Means Committees held marathon public hearings and executive sessions as Friday’s deadline looms.

Senate Ways & Means

The Senate Ways & Means Committee held a public hearing on two bills of particular interest to higher education – Senate Bill 5136 and Senate Bill 5182.

Senate Bill 5136 provides provisions of the state’s intent to partner with the Washington Governors University (WGU)  to establish Western Governors University-Washington and provide enhanced access to postsecondary education for all Washington students.  The Evergreen State College testified, on behalf of the Council of Presidents, with concerns with regard to the potential impact to state financial aid programs but took no position on the bill.

Senate Bill 5182 eliminates the Higher Education Coordinating Board and creates the Council forPerformance and Accountability in Higher Education. The purpose of the Council is to develop performance-based measures and goals for each state university, regional university, and the state college, linked to the role, mission, and strategic plan of the institution of higher education including (a) indicators and goals that measure outcomes concerning cost, quality, and timeliness of student progress toward degrees and certifications; (b) benchmarks and goals for long-term degree production, including discrete benchmarks and goals in particular fields of study; (c) the level of resources necessary to meet the performance outcomes, benchmarks, and goals, subject to legislative appropriation; (d) indicators and goals that measure outcomes concerning recruitment, retention, and success of students from diverse, underrepresented communities; and (e) a system of consequences for exceeding or for failing to achieve the goals or benchmarks.

The Evergreen State College testified in support of the bill and on behalf of the Council of Presidents. Evergreen stated that state government reform, including reform of higher education, is an important issue this session and SB 5182 offers an effective and efficient structure for higher education that is worth further consideration. 

House Ways & Means

The House Ways & Means Committee held a public hearing on three bills of interest to higher education.

House Bill 1666 would implement the recommendations from the Governor’s Higher Education Task Force. The legislation heard by the Committee this afternoon introduced substitute language to change the bill passed out of House Higher Education last week.

The second substitute would make the following changes and remove all other sections:

  • Add intent language that recognized the work of the Governor’s HigherEducation Task Force, the need to build on those recommendations, andthe need for the state’s citizens to achieve much higher levels of educational attainment
  • Require the Higher Education Coordinating Board in collaboration with a broad range of higher education stakeholders to review state achievement goals and capacity to meet those goals, including a consideration of socioeconomic status, and provide a preliminary assessment to the Legislature by August 15, 2011.
  • Make technical changes to the existing language regarding the Washington pledge endowment fund to accrue its own interest
  • Retain  degree targets and higher education institution action plans to achieve those targets

House Bill 1795 would establish the Higher Education Opportunity Act. The legislation heard by the Committee this afternoon introduced substitute language to change the bill passed out of House Higher Education last week.

The second substitute would make the following changes and remove all other sections:

  • Adds a requirement that beginning in the 2015-16 academic year, reductions or  
  • Clarifies that tuition setting authority is for four years, beginning in the 2011 academic year through the end of the 2014 academic year
  • Adds a requirement that beginning in the 2015-16 academic year, reductions or increases in tuition must be provided in the appropriations act when responsibility for setting tuition setting reverts to the Legislature.
  • Adds transfer provisions in addition to requiring higher education institutions to publish transferrable courses on their websites: 1) requiring that students who have earned direct transfer agreements associate degrees have junior standing at the receiving four-year higher education institution; and 2) requiring that institutions of higher education develop a one year certificate of general education requirements that is transferrable to any other public higher education institution.  

House Bill 1981 would alter existing retire/rehire policies for higher education institutions. In particular the bill would eliminate Public Employees’ Retirement System (PERS) and Teachers’ Retirement System (TRS) Plan 1 provisions permitting retirees to receive benefits while employed in retirement system-covered positions for up to 1,500 hours per year.

In addition the bill would add positions covered by a Higher Education Retirement Plan (HERP) to those included in the postretirement employment pension restrictions for PERS, TRS, the School Employees’ Retirement System, and the Public Safety Employees’ Retirement System.

Finally the bill would imit the employees to which state institutions of higher education may offer the HERP, instead of PERS Plans 2 or 3, to faculty and senior academic administrator employees; eliminate the HERP Supplemental Benefit for employees that enter the plan July 1, 2011, and provides the new employees the option of joining the TRS Plan 3 or PERS Plan 3;  require higher education institutions responsible for payment of HERP Supplemental Benefits to contract with and provide data to the Office of the State Actuary for periodic actuarial valuations and experience studies of the HERP plans; and limit state funding for the HERP plans to 6 percent of salary.

Appropriation Committees Continue to Hear Legislation that Would Impact Higher Education

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The appropriation committees in the Washington House and Senate were alive with activity this afternoon.  Both the House and Senate Ways & Means Committees heard numerous bills in preparation for the looming fiscal deadline this Friday.

House Ways & Means

The House Ways & Means Committee took up three bills that would impact higher education – House Bill 1663, 1792, and 1841.

  • House Bill 1663 removes higher education institutions from the requirement to seek an exemption from the Office of Financial Management with regards to purchasing from the Department of Corrections.
  • House Bill 1792 directs Washington State University to complete a strategic plan to establish a branch campus at Everett with the collaboration of the University Center at Everett Community College and the baccalaureate institutions that provide programs at the University Center at Everett Community College.
  • House Bill 1841 creates the Office of the Chief Information Officer (Office of the CIO) within the Office of Financial Management and an Information Technology Advisory Board to advise the Office of the CIO on information technology issues. Eliminates the Information Services Board.

Senate Ways & Means

The Senate Ways & Means Committee considered Senate Bill 5795. Senate Bill 5795 would use $250,000 of unclaimed prize money for FY11-12 and FY12-13 for the four-year Student Child Care in Higher Education Account.

U.S. House Passes Stop-Gap Spending Bill

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Earlier this week, the U.S. House of Representatives voted 235 to 189 to approve a stop-gap spending bill (H.R. 1). H.R. 1  would fund the federal government for the rest of FY2011 after the current continuing resolution expires on March 4.

H.R. 1 cuts discretionary-funded maximum awards for the Pell Grant from $4,860 to $4,105.  When the mandatory funds ($690) are considered the 2011-12 maximum Pell Grant award would be $4,705. This is a 15% decrease from 2010-11.

In addition, the bill makes proportionate reductions to awards below the maximum, reduces Pell eligibility for some of the highest eligible Expected Family Contribution groups, and prohibits the U.S. Department of Education from using FY11 appropriations to implement, administer, or enforce gainful employment regulations.

The bill also provides no funding for the Federal Supplemental Educational Opportunity Grant (FSEOG) and the Leveraging Educational Assistance Partnership (LEAP). Both programs provide financial grants to students who qualify for financial aid. Finally, the bill reduces President Obama’s proposed FY11 budget request by $100 billion.

H.R. 1 now goes to the U.S. Senate for further consideration.