Author Archives: garverj

Passage of Tax Bill May Impact Higher Education

Posted on by

Last week, the U.S. House passed legislation focused on extending certain taxes. The American Jobs and Closing Tax Loopholes Act (H.R. 4213), with a vote of 215 to 204, includes a provision that would extend the above-the-line tax deduction for qualified education expenses for one year (through 2010).

Under the provision, taxpayers who qualify for a greater net reduction in tax liability from current tax credits, the Hope and Lifetime Learning credits, would not qualify for the above-the-line tax deduction for qualified education expenses.

The Act, according to the U.S. House Ways & Means Committee, also includes several other provisions that impact higher education.

  • Supports 350,000 jobs for youth ages 14-24 through summer employment programs.
  • Extends for one-year (through 2010) the provision that encourages businesses to contribute computer equipment and software to elementary, secondary, and post-secondary schools.
  • Expands the current grant program to education institutions to develop, offer and improve education and career training programs for workers eligible for Trade Adjustment Assistance for Communities to also benefit individuals who are eligible for unemployment insurance, who are likely to be eligible for unemployment insurance or who have exhausted their unemployment insurance.

The Act now goes to the Senate where additional amendments will likely be considered.

Washington Receives Federal Funds to Support a Statewide Longitudinal Data System

Posted on by

Last week, the U.S. Department of Education’s Institute of Education Science announced the awarding of $250 million in grants to twenty state education departments to design and implement a statewide longitudinal data system.

Among the twenty state education departments awarded funds, Washington received $17.3 million to assist in the development and implementation of systems that promote linking of data across time and databases, from early childhood into career, including matching teachers to students, while protecting student privacy and confidentiality consistent with applicable privacy protection laws.

The grant funds will be directed by Washington’s Office of Superintendent of Public Instruction and the Education Research and Data Center.

The grants are funded through the American Recovery and Reinvestment Act (ARRA, a.k.a. stimulus dollars) of 2009.  The awardees were selected in a competition based on the merit of the applicants’ proposals and the funding available for the program. All fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands applied.

U.S. Senate Passes Financial Reform Bill Help to Higher Education Minimal

Posted on by

Last week the U.S. Senate passed the Restoring American Financial Stabiliy Act of 2010 (S. 3217).  The Act, with a vote of 59-39, is expected to strengthen regulations governing financial institutions and prevent the risky behavior that led to a near-collapse of the economy in recent years.

The debate on the Act in recent weeks included several proposed amendments that would benefit student borrowers and higher education institutions.

In a review of the bill it appears that none of the amendments proposed by higher education organizations were included in the final version passed by the Senate. This included proposals to include language that would move the Direct Loan Program under the asupices of a new Consumer Financial Protection Bureau, allow private loans to be discharged in bankruptcy, provide an exemption for Title VII and Title VIII from new Truth in Lending Act disclosures, and require school certification on private student loans.

It appears that the only higher education related language to be amended to the bill targeted the “swipe fees” that banks charge merchants to process credit- and debit-card payments. The fees average 1-2 percent of a purchase. The added language would result in lower fees paid by colleges when students use credit and debit cards to pay for tuition and books.

The Senate’s Act must now be reconciled with the Wall Street Reform and Consumer Protection Act of 2009 (H.R. 4173), passed by the House last year through conference committee.

Pell Grant Extended to Students of Deceased First Responders

Posted on by

Yesterday, the U.S. House of Representatives passed legislation to extend the Pell Grant to students whose parent(s) are deceased first responders.

The Officer Daniel Faulkner Children of Fallen Heroes Scholarship Act of 2009 (H.R. 959) would provide the maximum federal Pell Grant award beginning in the 2010-11 year to children of law enforcement officers, firefighters or members of a rescue squad or emergency medical services crew who are killed in the line of duty.

The Act would allow for the awarding of the maximum grant to students whose parent or guardian died in the line of duty while actively serving as a public safety officer.

The bill now goes to the Senate for further consideration.

Latest on Higher Education-Related Actions on Financial System Legislation

Posted on by

Earlier this week the U.S. approved an amendment to the Restoring American Financial Stability Act of 2010 (S.3217) that would result in lower fees paid by colleges when students use credit and debit cards to pay for tuition and books.

Amendment S. Amdt. 3989, with a vote of 64-33, targets the “swipe fees” that banks charge merchants to process credit- and debit-card payments. The fees average 1-2 percent of a purchase.

The amendment would require the government to issue regulations to ensure that debit-card swipe fees are “reasonable and proportional” to the cost of processing transactions. In addition, the amendment would allow retailers to set minimum transaction amounts for card purchases and offer discounts to customers who pay with lower-cost cards or with cash.

As reported earlier in this blog, efforts to include an amendment to require private educational lenders to obtain institutional certification prior to making loans to students is still under consideration. Representatives from several organizations that represent financial aid administrators, lending institutions, and students continue to urge the U.S. Senate keep this student loan related-language in the bill.

Finally, several additional amendments are still in the works that could effect private student loans. These amendments include:

  • An amendment from Senator Al Franken (D-MN) that would restore bankruptcy protections to student loan borrowers.
  • An amendment from Senator Dick Durbin (D-IL) that would extend the newly created Consumer Financial Protection Bureau’s (CFPB) authority to banks and credits unions with assets between $1 billion and $10 billion that originate private student loans.
  • An amendment from Senators Charles Schumer (D-NY) and Jack Reed (D-RI) that would enhance CFPB enforcement over non-bank entities that extend credit or make loans.  A vote on the final version of the bill is expected some time next week.

Potential Student Loan Language in National Finance System Legislation

Posted on by

The Consumer Bankers Association, the Education Finance Council, the National Council of Higher Education Loan Programs, the National Association of Student Financial Aid Administrators, the Institute for College Access and Success and the U.S. Public Interest Research Group are urging the U.S. Senate to include student loan related-language in the Restoring American Financial Stability Act of 2010 (S.3217).

The language would require providers of non-federal student loans to get colleges’ approval before they make such loans to students. The intention is to assure that borrowers turn to more-expensive private loans only after they have exhausted federal, state, and institutional grants or at least less costly federal student loans.

The provision would mimic similar language passed in December by the U.S. House of Representatives in the Wall Street Reform and Consumer Protection Act of 2009 (H.R. 4173), which included a provision (Sec. 4818) that would require private educational lenders to obtain institutional certification prior to making loans to students. 

New Bill Introduced Urges Prioritization of Pell Grant

Posted on by

Last week U.S. Rep. Paulsen (R-MN) introduced legislation to express the sense of Congress that the federal Pell Grant program should be a high funding priority.

House Resolution 5198 (HR 5198) was introduced at a time when the Pell Grant currently faces an estimated $5 billion budgetary shortfall that may threaten to reduce awards to students.

The shortfall is due to a dramatic increase in the number of students served by the program. This year the program is estimated to to provided aid to 8.3 million undergraduate students.

The bill has been referred to the House Committee on Education and Labor for further consideration.

Preview of Candidates for Fall Election in Washington

Posted on by

This fall all of the seats in the Washington House of Representatives will be up for election along with twenty-four seats in the Washington Senate.

House
Though all seats will be up for election in the Washington House, several current serving representatives have announced their decision to either retire or run for a different office.

Both representatives for District 1 (parts of Snohomish and King Counties) have announced they will not seek re-election. Rep. O’Brien is retiring and Rep. Ericks (Vice Chair for Ways & Means) is setting his sights on a position with U.S. Marshall’s Office.

Several other representatives are also seeking positions elsewhere in public service.

  • Rep. Herrera (R-18 Kalama, Evergreen State College) – Third Congressional District
  • Rep. Williams (D-22 Thurston County, Evergreen State College) – WA Supreme Court
  • Rep. Priest (R-30 Federal Way) – Federal Way Mayor
  • Rep. Roach (R-31 Bonney Lake) – Pierce County Council
  • Rep. Nelson (D-34 West Seattle) – Vacated Senate Seat currently held by Sen. McDermott
  • Rep. Ericksen (R- 42 Ferndale) – Vacated Senate Seat currently held by Sen. Brandland

Finally, several more representatives have chosen to end, which for many is a multi-decade career in the Washington Legislature, to pursue other interests.  These include Representatives:

  • Rep. Wood (D-3 Spokane),
  • Rep. Wallace (D-12 Vancouver, Chair of House Higher Education),
  • Rep. Kessler (D-24 Parts of Clallam, Jefferson and Grays Harbort Counties, Majority Leader),
  • Rep. Flannigan (D-27 Tacoma/Fife), and
  • Rep. Quall (D-40 Parts of San Juan, Skagit, and Whatcom Counties, Chair of House Education).

Senate
This fall  twenty-four seats will be open for election in the Washington Senate.  The seats in which the term will expire in January 2011 are currently held by the following elected officials:

  • Sen. Marr (D-6 Spokane)
  • Sen. Morton (R-7 Kettle Falls)
  • Sen. Delvin (D-8 Richland)
  • Sen. Holmquist (R-13 Moses Lake)
  • Sen. Honeyford (R-15 Sunnyside)
  • Sen. Shin (D-21 Edmonds, Senate Higher Education & Workforce Dev. Cmte)
  • Sen. Kilmer (D-26 Gig Harbor, Chair – Senate Higher Education & Workforce Dev. Cmte)
  • Sen. Franklin (D-29 South Tacoma)
  • Sen. Eide (D-30 Federal Way)
  • Sen. Roach (R-31 Auburn)
  • Sen. Fairley (D-32 Parts of King and Snohomish Counties)
  • Sen. Keiser (D-33 Kent)
  • Sen. McDermott (D-34 West Seattle)
  • Sen. Sheldon (D-35 Potlatch)
  • Sen. Kohl-Welles (D-36 Seattle)
  • Sen. Kline (D-37 Seattle)
  • Sen. Berkey (D-38 Everett)
  • Sen. Brandland (R-42 Bellingham)
  • Sen. Murray (D-43 Seattle)
  • Sen. Hobbs (D-44 Lake Stevens)
  • Sen. Oemig (D-45 Kirkland)
  • Sen. Jacobsen (D-46 Seattle, Senate Higher Education & Workforce Development Cmte)
  • Sen. Kauffman (D-47 Kent)
  • Sen. Tom (D-48 Bellevue, Vice Chair of Senate Ways & Means)

Four of the Senate seats will be open races with no incumbent. Senators Fairley, Franklin, and Brandland have announced their retirment, while Sen. McDermott is seeking a seat on the King County Council in November.

Governor Signs Energy Jobs Bill

Posted on by

This afternoon the Governor signed into law House Bill 2561.  

House Bill 2561 requires a ballot measure be sent to voters to authorize the issuance of $505 million in bonds to finance an array of energy efficiency improvements to public schools and buildings on public college and university campuses.

The bonds for the improvements would be funded by making permanent the proposed tax on bottled water after three years.

Governor Partially Vetoes 2010 Supplemental Budgets

Posted on by

This afternoon Governor Gregoire partially vetoed the 2010 supplemental operating and capital budgets passed by the Legislature in April.

Operating Budget

The Governor vetoed several sections of the 2010 supplemental operating budget passed by the Legislature in April. In total she vetoed all or parts of thirty two sections of Senate Bill 6444.

Only a handful of the sections vetoed impact Evergreen in some way. None of the areas vetoed that impact Evergreen changed the state funding reduction to Evergreen’s institutional budget.

  • Vetoe Section 501(1)(f)(iv) – Office of the Superintendent of Public Instruction, Exempting the Professional Educator Standards Board (PESB) from Expenditure Restrictions.
    This section exempted PESB from the restrictions on travel allowances and meeting costs that apply to other boards and commissions under Chapter 7, Laws of 2010 (Engrossed House Bill 2617). This law allows agencies to seek exceptions to the travel and meeting restrictions for critically necessary work. To maintain consistency in the application of these restrictions among state boards and commissions this section was vetoed.
  • Veto Section 708, pp.270-271, Washington Management Service and Exempt Management Services Reductions.
    This section ties to Section 2 of Senate Bill 6503 which was vetoed. The budget proviso assumes additional compensation reductions of $10 million in General Fund-State funding from the Washington Management Service and exempt managers, who comprise less than 5% of the state employees. This cut would require that specified staff take nearly two weeks of temporary layoff time beyond the ten days included in ESB 6503. This inequity is likely to create problems in recruiting/retaining qualified and experienced workers, as well as be disruptive to normal state operations. Managers will be subject to temporary layoffs in the same proportion as all affected state employees.
  • Veto Section 902, pp. 289-290, Agency Staffing Report
    The agency staffing report required by Section 902 adds another layer of complexity to the data already required to be reported through allotment and accounting systems. The addition of monthly job class information adds immensely to agency workloads with seemingly minimal benefit. The Governor directed the Office of Financial Management to work with legislative fiscal staff to identify alternative reporting formats that can be useful without creating an unacceptable workload burden.
  • Veto Section 920, pages 301-302, Washington State Quality Awards
    Section 920 accelerates the date by which agencies must apply to the Washington State Quality Awards program. It also limits that requirement for agencies that have more than 300 full-time equivalent employees. A great deal of time and effort is required for a well-executed Washington State Quality Award application. The new date of June 30, 2010 is too short a timeframe especially for large agencies that may have to submit multiple applications.

Capital Budget

The Governor vetoed only three sections of the 2010 supplemental capital budget passed by the Legislature in April. Of the three sections vetoed, two impact Evergreen.

  • Section 6003, p.111, Office of Financial Management Budget Instructions
    With this proviso the Office of Financial Management must require that preliminary energy audits be conducted on project requests that involved significant renovations or improvements in owned or leased facilities. Reducing energy consumption is a high priority, but requiring energy audits before funding decisions are made will be burdensome and costly. The Governor has directed the Office of Financial Management to develop instructions to state agencies that will serve the goal of reducing energy costs without requiring formal audits for every project.
  • Section 6012, pp. 121-122, Project Tranfer Authority
    This proviso eliminates existing authorization for the Office of Financial Management to approve the transfer of funds from one capital project to another within the same state agency. It also places limitations on approving spending plans for construction contingencies, bid alternates, and equipment costs for capital budget projects already approved by the Legislature. These limitations are too stringent for state agenices and may cause unintended cost increases and schedule delays. The Governor has directed the Office of Financial Management to continue to scrutinize capital project spending plans to identify additional savings that can be directed to new projects in the 2011-13 biennium.