Changes Proposed to Federal Post-9/11 GI Bill

Fall 2010 marked the second anniversary of the implementation of the Post-9/11 GI Bill. The bill was passed on June 30, 2008 and went into effect on Augsut 1, 2009. The bill greatly expanded higher education benefits to veterans who served since September 11, 2001.

Earlier this year, both the U.S. House and Senate introduced legislation to improve and clarify the legislation. The Post-9/11 Veteran’s Education Improvement Act of 2010 (S. 3447 and H.R. 5933) offers changes to current law in response to criticisms and implementation problems as well as the need to ensure the bill is relevant to the needs of today’s veteran students.

The bills introduced in 2010 do not dramatically change the funding of public education for veterans, but instead focus on changes to the contribution to private education. Students attending public institutions would have their tuition and fees fully covered, effectively the same as current law .

The Senate version however would require a cap at private institutions to be a national average of the tuition and fees for both public and private programs, rather than the highest public program in a student’s state.  The House version would require a $20,000 cap.

Both changes differ from current law. Current law allows the state to set the base benefit; the maximum benefit equates to the most expensive in-state undergraduate tuition and fees at a public institution of higher education in the state’s system. Veterans who attend a public institution as an out-of-state student or who attend a private institution may apply the maximum base benefit toward the out-of-state tuition public or private institution tuition and fees.  To cover any remaining expenses for veterans the Yellow Ribbon Program matches institutuional dollars put forth to reduce the remaining expenses with dollars from the federal government to eliminate the funding gap.

The changes proposed in the new legislation have both challenges and strengths. The challenge emerges the inclusion of caps, which would likely result in a lower amount that veterans would receive at private instituitons and would necessitate that institutions contribute more funds towards the Yellow Ribbon Program. The strengths the changes offer include the creation of a national standard and a level playing field for all veterans across all states.

In addition to a cap, both bills provide additional changes. Among these changes are an eligibility extension to those who have served full-time in the National Guard and Reserve and an expansion of the types of institutions at which veterans can receive benefits.  Finally, both bills call for an increase in the adminstrative cost allowance to accomodate the procedures involved in implementation.

Latest on Congress

This week the U.S. Congress returned to Washington, D.C. after recessing for the 2010 midterm elections.

There is tremendous debate regarding the level of action and the issues that will be acted on  during the final session of the 111th Congress.

One issue where there is no debate is the need to address the status of the FY 2011 budget. On September 30, Congress passed a continuing resolution to fund federal programs through December 3.

Therefore, before Congress departs action will need to be taken on all 12 appropriations bills by the current resolution’s deadline, pass an ominbus spending bill (which combines several appropriations bills into one), or pass an additional continuing resolution.

The 112th Congress will be officially sworn in and begin the first week in January.

National Commission Recommends Reductions to Higher Education to Balance National Budget

Yesterday, the bipartisan National Commission on Fiscal Responsibility and Reform released a draft proposal to reduce the federal budget deficit.

Among the recommendations in the proposal is to eliminate the in-school interest subsidy on federal loans and discontinue administrative cost allowances paid through the Pell and campus-based programs.

The Obama Administration is withholding comment on the draft proposal until the Commission releases final recommendations.

The Commission was created by President Obama to recommend policies to address the nation’s fiscal challenges and balance the budget by 2015. The Commission, which is made up of a bipartisan set of legislators and other fiscal experts, was charged to produce a final set of recommendations no later than December 1, 2010. A final report would rquire the approval of at least 14 of the Commission’s 18 members.

Congressional 2nd District Looks Like Win for Democrats; Update on State Races

Today reports declare U.S. Representative Rick Larsen the winner in the race for the 2nd Congressional District in Washington.

Though John Koster, the Snohomish County Councilman running against Larsen, has not conceded election totals show that Larsen leads Koster 51% to 49%  with more than 281,000 votes counted as of Monday night.  This lead is outside the range for a mandatory recount.

State
At the time of this blog, the Democrats it appears that the Democrats will retain control of both the Washington House and Senate.

Regardless of the outcome, the majorities in both chamber will be much smaller than in the prior biennium.  Republicans  won several seats this election, closing the prior 13 member gap held by the Senate Democrats to five (27 Democrat; 22 Republican) at the time of this blog.

In the House, the Democrats held a 61-37 advantage. All 98 seats were on the November ballot, with 16 open seats. The latest poll numbers show the Democrat advantage has been reduced, closing the gap from 24 to 16 votes (57 Democrats; 41 Republicans) at the time of this blog.

What is Next
On November 15, the next revenue forecast is scheduled. The preliminary forecast showed little change from September, but an increase in caseloads is expected.

Between now and the end of December any unknowns regarding the election will be cleared. In addition, information regarding legislative leadership and committee chairs should emerge.

Finally, towards the end of December Governor Gregoire will release her budget. Followed by the beginning of the 2011 legislative regular session on January 10.

Election Update: Murray Wins, Democrats Appear to Hold Washington Legislature

Leadership and structure at the federal and state levels continues to take shape as the week ends.

Federal
On Thursday evening Dino Rossi conceded the U.S. Senate seat  to Patty Murray. As of Thursday night, Murray led Rossi by more than 46,000 votes statewide, taking 51% to Rossi’s 49%.

Results for the 2nd Congressional District seat remain undetermined. As ofyesterday, Democrat Rep. Rick Larsen maintained a narrow lead over Snohomish County Councilman John Koster in the latest vote tallies.

Larsen trailed on Election Day by about 1,200 votes. On Thursday, he had pulled ahead by 1,451 votes, or 0.66 percent. A recount is required if the candidates are less than one-half a percentage point and fewer than 2,000 votes apart.

State
At the time of this blog, the Democrats appear to be retaining control of both the Washington House and Senate. Though no final determinations have been made for a handful of Senate and House seats.

It is also unclear whether or not a recount will be triggered. In Washington a machine recount is automatic when the difference is less than 2,000 votes and 0.5% of total votes cast for both candidates.

A manual recount is triggered when the difference is less than 1,000 votes and 0.25% of total votes cast for both candidates for statewide offices; and 150 votes and 0.25% of total votes cast for both candidates for regional and local offices.

Regardless of the outcome, the majorities in both chamber will be much smaller than in the prior biennium.

Final Election News Will Be Slow; Political Context Taking Shape

Two-days after the 2010 mid-term election ballots are still being counted. It is expected that it will take weeks before a handful of state legislative races or control of the Legislature is decided.

Here is a quick summary of how races are shaping up across the state, based on election results posted on the Secretary of State’s website today

Federal
U.S. Senator Patty Murray(51%) is leading former state senator Dino Rossi (49%).  Most election observers believe it will take some time and a possible recount to determine this race.

In the open 3rd Congressional District, State Rep. Jaime Herrera (53%) leads former state legislator Denny Heck (47%). The 3rd Congressional District represents The Evergreen State College.

In the 2nd Congressional District, U.S. Representative Rick Larsen is in a close race with Snohomish County Council Member John Koster. Larsen leads by just over 500 votes.

Of the remaining congressional races, seven of the nine incumbents are clearly returning to Washington D.C. They include: U.S. Representatives Norm Dicks, Richard “Doc” Hastings, Jay Inslee, Jim McDermott, Cathy McMorris-Rodgers, Dave Reichert, and Adam Smith.

Washington Legislature
This January 25 new legislators will arrive in Olympia. At least 21 new House members and 4 new Senate members will join the Washington Legislature.

A smaller gap between the number of majority and minority members in both chambers is likely to mean changes, such as in committee structure.  Republicans  won several seats this election, closing the prior 13 member gap held by the Senate Democrats to five (27 Democrat; 22 Republican) at the time of this blog.

In the House, the Democrats held a 61-37 advantage. All 98 seats were on the November ballot, with 16 open seats. Since Tuesday, the Democrat advantage has been reduced to half, closing the gap to 12 votes (55 Democrats; 43 Republicans) at the time of this blog.

In addition, the loss of current House Ways & Means Committee Chair Kelli Linville as well as races too close to call for House Capital Budget Chair Hans Dunshee and House Education Appropriations Chair Kathy Haigh means possible change with regard to budget committees.

House Democratic leadership also faces changes with the retirement of Majority Leader Lynn Kessler and a race too close to call for current Democratic Caucus Chair Dawn Morrell. Finally, the chair of the House Higher Education Committee did not run nor did the chair and ranking member of the House Education Committee, leaving holes in both of these policy committees.

Budget
The 2011 legislative session is expected to be another difficult fiscal session for all of Washington.  The state faces an immediate budget gap of least $500 million (gap in the 2009-11 biennium) and an estimated $4.5 billion for the 2011-13 biennium. Tough choices are expected with the 2010 tax increases gone and a return to the two-thirds requirment with the passage of I-1053.

What is Next
On November 15, the next revenue forecast is scheduled. The preliminary forecast showed little change from September, but an increase in caseloads is expected.

Between now and the end of December any unknowns regarding the election will be cleared. In addition, information regarding legislative leadership and committee chairs should emerge.

Finally, towards the end of December Governor Gregoire will release her budget. Followed by the beginning of the 2011 legislative regular session on January 10.

Elections Create Some Change

Election results in Washington continue to change one-day after the 2010 mid-term election. 

Several races, at the state and federal levels, remain too close to call, including the U.S. Senate race between Murray and Rossi and several state senate and house races.

Reports state that nearly a third of all votes have yet to be counted in Washington. These votes are expected to be counted as they trickle in via snail mail.

What we do know is that the number of Republicans and Democrats in the Washington Legislature is expected to be much closer than in the prior legislative session. In addition, the majority of initiatives on the ballot are failing with two exceptions. Both I-1053 and I-1107 are passing.

Specific to Evergreen we will likely welcome a new U.S. Representative for the 3rd District, Jaime Herrera as well as  a new state representative, Chris Reykdal. In addition, we will continue to be represented by Rep. Sam Hunt and Sen. Karen Fraser.

Stay tuned for updates!

New Federal Regulations for Higher Education Expected

This week, the Obama Administration is expected to release new finalized regulations for colleges and universities that participate in federal student aid programs.

The regulations amount to a significant expansion of federal oversight of higher education. The regulations range from efforts to reshape how admissions recruiters are paid to how course credits are defined to how career training programs are launched.

A hotly debated fourteenth proposal, known to many as the “gainful employment” regulation is still pending and expected to be resolved in early 2011. The “gainful employment” regulation would force for-profit colleges and others that offer non-degree vocational programs to meet new standards related to student debt to qualify for federal aid.

A list was released Wednesday of forty groups and institutions that had either met or will meet with the U.S. Department of Education in the coming weeks to discuss their comments on the gainful employment metrics.

In the works for over a year, the thirteen regulations were circulated among lawmakers yesterday. The rules will take effect July 1, 2011.

Governor’s Association Names Advisory Group for Accountability Initiative

The National Governor’s Association (NGA) recently announced the members of the Complete to Compete National Advisory Group.

Complete to Compete is a yearlong initiative, developed by the current NGA Chair Governor Manchin (WV), focused on increasing the number of students in the U.S. who complete college degrees and certificates and improving the productivity of the country’s higher education institutions.

The members of the Advisory Group include:

Charlie Earl- Executive Director, Washington State Board for Community & Technical Colleges
Fred DuVal – Vice Chair, Arizona Board of Regents
Roger Ferguson, Jr. – President/CEO, TIAA-CREF
Juliet Garcia, President, Universit of Texas at Brownsville & Texas Southmost College
Bill Green, Chairman/CEO, Accenture
Brian Noland, Chancellor, West Virginia Higher Education Policy Commission
Charlie Reed, Chancellor, The California State University
Eduardo Padron, President, Miami Dade College
Eric Smith, Commissioner, Florida Department of Education
Nancy Zimpher, Chancellor, State University of New York

Obama Promotes Making Permanent New Education Tax Credit

The Obama Administration is publicly supporting making permanent a temporary tax credit for higher education. 

The American Opportunity Tax Credit, due to expire at the end of this year, expanded the existing Hope Credit to more Americans and covers a greater range of items, including computers and textbooks.

The tax credit was passed by Congress as parent of the stimulus bill.