Author Archives: garverj

Higher Education Act 2013 Renewal on Agenda

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This week U.S. Secretary of Education Arne Duncan convened a subcommittee of the Department’s National Advisorty Committee on Institutional Quality and Integrity to develop a set of legislative recommendations for the 2013 renewal of the Higher Education Act.

The subcommittee plans to make recommendations regarding the nation’as decentralized system of accreditation as well as on non-accreditation issues.

Susan Phillips, Provost and Vice President for Academic Affairs at State University of New York Albany, Chair of the subcommittee, framed the charge of the subcommittee in an outline. The outline targets several key issues facing higher education:

  • How well does the federal investment in education serve the nation?
  • How well does the current accreditation/recognition system protect the interests of the taxpayer who is underwriting the investment in education?
  • If we began today, we would design the current system?

The subcommittee plans to host a policy forum in February 2011 to seek input from the public. The goal is to have a set of recommendations to the Secretary by December 2011.

In addition to Chair Phillips the subcommittee includes:

  • Arthur E. Keiser, chancellor of the Kesier Collegiate System
  • William E. (Brit) Kirwan, chancellor of the University System of Maryland
  • Daniel J. Klaich, chancellor and chief operating officer of the Nevada System of Higher Education
  • Anne D. Neal, president of the American Council of Trustees and Alumni
  • William Pepicello, provost and president of the University of Phoenix
  • Jamienne S. Studley, president and CEO of Public Advocates, Inc.
  • Ex officio: Cameron C. Staples, member of the Connecticut House of Representative
  • Ex officio: Arthur J. Rothkopf, president emeritus Lafayette College

Recounts Go to Republican Candidates

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This week the Washington Secretary of State completed recounts in three state legislative races.

Republican Challenger Steve Litzow (District 41) prevailed by 192 votes in the machine recount of his race against Democratic State Sen. Randy Gordon.

In the 25th Legislative District Republican Hans Zeiger (District 42) defeated Rep. Dawn Morrell, the House Democratic Caucus Chairwoman, by 30 votes.

Finally, Republican Vincent Buys defeated Democrat Representative Kelli Linville.

None of the outcomes change the majorities in either the House or Senate.

New Legislation Looks at Requirements to Private Loans After Death of a Student

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This week, U.S. Senator Lautenberg introduced legislation  to require lenders to make clear the obligations of co-signers in the event of a student’s death.

The Christopher Bryski Student Loan Protection Act is the culmination of a multi-year battle fought by the Bryski family. In July 2006, Christopher Bryski died at the age of 25. Today, his parents continue to make monthly payments on the $44,500 in private student loans that Mr. Bryski took out to attend Rutgers University.

The Act introduced this week would require lenders to provide students and parents with more information about what happens to loans in the event of death.

Federal student loans can generally be discharged if a student dies or becomes permanently disabled, however, private student lenders  are not required to discharge loans in the event of death or disability, leaving co-signers, typically parents, on the hook for the balance.

The House passed its version of the bill in September, and the nearly-identical Senate version, which does not have funding attached, is also expected to pass, according to people familiar with the legislation. A compromise between lawmakers and industry groups, the current version would not require lenders to discharge private student loans. However, it would require all private lenders, to define the obligations of the co-signer, typically a parent, in the event of the student’s death or disability, and to provide information on power of attorney.

The Senate version of the bill designates the new Consumer Financial Protection Bureau as the agency responsible for handling the issue. Final approval will be needed in the House after Senate passage before it can be signed into law.

Republicans and House Democrats Release Proposals to Balance Budget

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Yesterday, both the House and Senate Republicans and the House Democrats issued their proposals to balance the $1.2 billion shortfall in the current fiscal year.

Both proposals come on the heels of a detailed list issued by the Governor. Senate Democrats have yet to issue a proposal to balance the current budget shortfall.

House Republicans

Rep. Gary Alexander, current Ranking Minority Leader on the House Ways & Means Committee, issued a letter outlining a general framework for balancing the current budget. 

The House Republicans agree with many of the suggestions the Governor put forth in her proposed list of reductions. In addition, the House Republicans suggested items not included on the Governor’s proposed list, including suspension of all-day kindergarten and redefining the Temporary Assistance for Needy Families program.

The letter also noted areas of disagreement between the House Republicans and the Governor. Rep. Alexander spoke to concerns regarding retroactive actions on moneys already spent and the use of delaying payments to balance the budget.

Finally, the House Republicans offered a compromise with regard to employee health care benefits, suggesting a graduated ratio based on income. The proposal would begin with 14% and end with 26%, with the median around the 20% mark beginning in January. The Governor proposed a shift from a ratio of 74 state to 26 employees.

Senate Republicans

Senate Republicans issued a much more detailed list of proposals to balance the current budget shortfall.  The list of proposals range from redirecting revenue streams to the General Fund to reductions to all state agency budgets to reductions in state and higher education employee salaries.

With regard to higher education, the Senate Republican proposal:

  • Supports the Maintenance of Effort requirement for higher education
  • Calls for examination of non-state need grant and work study financial assistance programs
  • Reduces tuition waiver authority

House Democrats

Speaker Chopp and Representative Sullivan (Majority Leader-Elect) issued a preliminary 
list of reduction ideas. The list put forth by the  House Democrats does not include some of the proposed reductions put forth by Governor Gregoire, such as elimination of the Basic Health Plan and reductions to Levy Equalization.

With regard to higher education, the House Democrat proposal suggests:

  • Reductions to state financial aid programs, with the intent to minimize impact to students
  • Supports the Maintenance of Effort requirement for higher education

National Debt Commission Releases Final Report

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Today, the bipartisan National Commission on Fiscal Responsibility and Reform released their final report, The Moment of Truth.

The report proposes ideas and solutions to bring the federal budget into primary balance in 2015 and improve the long-run fiscal outlook.

The Commission recommends that a cap on discretionary spending be put into place thorugh 2020. Higher education would be impacted by this cap. The intention of this recommendation is to hold spending to 2012 or lower than 2011 spending levels and return spending to precrisis 2008 levels in real terms in 2013. In addition, the recommendation limits spending growth to half the projected inflation rate through 2020.

Another recommendation by the Commission is to eliminate the in-school interest subsidy on federal loans. This would allow for the elimination of income-based subsidies for federal student loan borrowers and better target hardship relief for loan repayment.

A final vote on the report is expected tomorrow, Friday.

Special Session Still Possible

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Yesterday, Governor Gregoire met with Democrat and Republican leaders from the House and Senate, but did not reach an agreement regarding a special session to deal with the looming $1.2 billion budget deficit in the current fiscal year.

Governor Gregoire would like action this month to balance the 2009-11 budget, but is hesistant to call in legislators without an agreement.  Legislative leadership still needs time to talk with their caucuses about proposals for reductions.

More meetings are planned with the Governor.

Legislative Committee Approves Higher Education Report

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This morning the Washington Joint Legislative Audit & Review Committee (JLARC) adopted the final report, Transparency in Higher Education Data.

In 2009, the Legislature asked JLARC to explore the feasibility of linking expenditure, revenue, and performance information for the state’s public four-year institutions.

The report found that in general comparable revenue, expenditure and performance information is currently available for each of the six public four-year institutions.

The report identifies some gaps and offers suggestions for improvements to fiscal data collected in the state accounting system and performance data collected by the Higher Education Coordinating Board.

Mike Reilly, Executive Director for the Council of Presidents, testified to the value of considering the adoption and implementation of  the NGA initiative Compete to Complete. Compete to Complete  offers the state the opportunity to consolidate measures for higher education into a single framework.  The University of Washington also testified.

The final report was unanimously approved.

State Legislators Travel to Olympia for Assembly Days

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The first full week in December marks for many the beginning of the legislative session season.

Washington’s representatives and senators will travel to Olympia to discuss the lastest budget figures, proposed policy frameworks for the 2011 session, and to finalize votes for leadership.

Several work sessions and public hearings are scheduled on critical issues that impact higher education. To learn more follow the links below.

This week the focus of the appropriations committees (i.e. Senate Ways & Means and House Ways & Means will be a review of the Governor’s across-the-board reductions, the November revenue and economic forecast, the work of the Governor’s Committee on Transforming Washington’s Budget, and the outlook for the current fiscal year and the 2011-13 biennium.

In addition, the higher education related committees (i.e. House Higher Education and House Education Appropriations, Senate Higher Education & Workforce Development) plans to receive updates and learn the latest regarding the 2011-13 budget outlook, the HECB Master Plan, and teacher education.

Special Session Under Discussion

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A potential special session in December is one of many topics under consideration by Governor Gregoire and legislative leadership.

Gregoire is scheduled to meet with Demoratic and Republican leaders on Wednesday to discuss options for cutting the budget. She had asked leadership for ideas for cutting the budget by Monday but several asked for additional time.

A special session in December would address the state’s need to cut more than $1 billion out of this year’s budget and about $5.7 billion from the next two-year budget.  The more time that passes without a resolution to the budget the greater the impact.

Last week Governor Gregoire identified options to reduce the state’s budget. Many of the items she proposed would require legislative action by December 12.

The Governor wants an agreement on an agenda before calling a special session to avoid lengthy delibrations.

Legislative leadership has expressed concerns regarding the elimination of programs and services without first trying to reduce the costs of these programs and services. In addition, there is some preference for a full supplemental budget versus quick program cuts.

Three Legislative Races Will Require Recount

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It appears that the full membership of the 2011-13 Washington Legislature will not be known until early December.

Three legislative races appear to be headed for a recount.

  • Legislative District 25 – Rep. Morrell trailed Republican challenger Hans Zeiger by 47 votes as of yesterday.
  • Legislative District 41 – Sen. Gordon trailed Republican challenger Steve Litzow by 194 votes.
  • Legislative District 42 – Rep. Linville trailed challenger Vincent Buys by 154 votes.

The race for the legislative seat in District 25 will require a hand recount, while the other two races will require a machine recount.