1 / 19

Aacc FEDERAL LEGISLATIVE and regulatory Update

Aacc FEDERAL LEGISLATIVE and regulatory Update. MCCA July, 2014. David Baime Senior Vice President, Government Relations & Policy Analysis American Association of Community Colleges. Federal Legislative Overview. Funding/Pell Grant Program Status HEA Reauthorization WIA Reauthorization

hammer
Download Presentation

Aacc FEDERAL LEGISLATIVE and regulatory Update

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Aacc FEDERAL LEGISLATIVE and regulatory Update MCCA July, 2014 David Baime Senior Vice President, Government Relations & Policy Analysis American Association of Community Colleges

  2. Federal Legislative Overview • Funding/Pell Grant Program Status • HEA Reauthorization • WIA Reauthorization • H.R. 3393 – AOTC Reform • Gainful Employment Regulations • Administration’s Ratings System • Title IX and Related Issues

  3. Appropriations & Budget • Under Bipartisan Budget Act, funding levels were set for FY 2014 and FY 2015 and sequestration was partially replaced. Sequestration continues. • Senate Labor-HHS-ED Appropriations Subcommittee approved legislation June 12; further action stymiedby threat of full Committee amendments. • Senate results largely positive with exception of use of Pell Grant (temporary) surplus for other programs. • House markup may take place later in July. • CR for first part of FY 2015 now seems inevitable; and lame duck session afterwards.

  4. Pell Grants • The automatic (CPI) increase in the maximum grant for 2014- 15 (starts July 1) brought total to $5,730 – an $85 increase. • Program has a surplus for FY 2015 and 2016; cost has been dropping. Beyond 2017 the program is slated to have significant shortfalls. • Reinstatement of eligibility for Ability-to-Benefit students remains a community college priority and partial restoration in FY 2015 is possible.

  5. HEA Reauthorization: general • The Higher Education Act (HEA) was last reauthorized in 2008. Extensive hearing have led to introduction of House and Senate legislation. Legislation will not be enacted in 2014. • Congressional priorities include: • Increasing completion rates • Reducing “cost” • Accreditation reform • Better consumer information • Simplifying student aid programs • Innovative learning models • Regulatory relief (Senate task force established)

  6. HEA Reauthorization: aACC Priorities • Pell Grants: Maintain maximum grant without harmful limitations on eligibility; reinstate Ability-to-Benefit & Year-Round Pell eligibility; expand current 12 semester limit; provide some eligibility flexibility for both programs/students (2% of total). • Student Loans: Lower borrowing limits and give colleges authority to reduce loan maximum; “decouple” Pell Grant eligibility from that for loans; restructure loan default rates and penalties. • Affordability & Completion: Stronger state maintenance of effort; bolster articulation agreements to extent possible. • Measurement: Create accurate Federal graduation (combined with transfer) rate.

  7. HEA REAUTHORIZATION: Harkin bill • Senator Tom Harkin (D-IA), chairman of the Senate Heath, Education, Labor and Pensions Committee has released a draft comprehensive HEA reauthorization bill. • Staff shared early draft of bill with AACC. Further comments due August 29. • Legislation is ambitious, with major policy changes, far-reaching requirements on institutions, and new programs. • Highlights include year-round Pell reinstatement (but only for full-time students), partial “Ability-to-Benefit” reinstatement. • New programs focused on community colleges: dual enrollment (marred by extensive accompanying requirements) and workforce training program (similar to what might have been included in WIA).

  8. HEA REAUTHORIZATION: Harkin bill • New Federal-State partnership program created; bitterly opposed by private non-profits. • New commission to examine success of institutions; would be problematic for community colleges. • Early draft included unit record data system with far-reaching data elements, but was pulled from draft; staff say it will return. • Stands 0.0001% chance of enactment in 2014.

  9. HEA REAuthorization: Alexander-Bennett bill • Significant bi-partisan legislation supported by possible chair of HELP Committee in 2015. Overall, quite positive for CCs. • Creates a two-item needs assessment system for Pell Grants, based on income and family size. Waivers permitted. Uses “prior-prior year” IRS data. • Restores year-round Pell Grant. • Allows aid administrators to reduce loan maximums if justified by post-completion earnings.

  10. Hea reauthorization: house bills and legislative activity • House Education and Workforce Committee has reported 3 major HEA reauthorization bills, start of piecemeal reauthorization. • Bills approved on bi-partisan basis though Democrats’ amendments were thwarted by Republicans. • Legislation headed to House floor week of July 21. • H.R. 4983 is most important bill, establishing new “College Dashboard” and data to populate it that derives from current IPEDS system. Legislation: • Creates 3 graduation rates (100%, 150% and 200%) that exclude transfers. AACC supports transfer inclusion and 300% window and is working to make changes. • Would report debt levels; link to BLS wages; variety of information on students and student aid. • Bill eschews student unit record data system and eliminates “watch lists.”

  11. HEA Reauthorization: house bills and legislative activity • H.R. 4984 creates new counseling requirements for institutions. Changes include annual loan counseling, and specific counseling for Pell Grant recipients (new). • Opposing enhanced counseling is politically problematic but AACC is concerned about institutions’ ability to comply. • H.R. 3136 would create a new competency-based demonstration program at ED. Legislation would allow ED to waive a broad range of statutory and other requirements that limit institutions’ ability to deliver competency-based education. • AACC supports House legislation – but changes are needed. Bills will not be enacted in 2014.

  12. Workforce Investment Act (WIA)Reauthorization • Bi-partisan House and Senate negotiations led to agreement in early summer, 10 years after law’s expiration. • Legislation (WIOA) now approved, by overwhelming margins, by both chambers. • Legislation good but not perfect; AACC endorsed. • Highlights include: retains CC role on local boards (and some state boards); increased contracting authority; better integration of adult education into training programs and career pathways. • Imperfections: subsequent trainer eligibility criteria are problematic; community colleges not made full partners in system; no CC-specific program; infrastructure provisions.

  13. H.R. 3393 – AOTC Reform • Black-Davis Legislation, H.R. 3393, Student and Family Tax Simplification Act, is headed to the House floor. • Legislation was bi-partisan, growing out of tax reform effort. • Legislation lost Democratic support when income phase-outs were increased, thereby benefitting more students but creating “pay for” issue for Ds. • Loss of bi-partisanship major blow to bill’s prospects. • AACC strongly supports bill, alone among major higher education associations: • It targets aid to needier students with increased refundability. • Resolves issue related to Pell Grant offset that decreases CC awards. • Ends inappropriate subsidies to more affluent students.

  14. Gainful Employment NPRM • Regulation largely targeted at for-profit colleges. • Community colleges bear brunt of regulation in non-profit higher education. • GEprograms include all Title IV-eligible certificate (non-degree) programs at community colleges and nearly all educational programs at for-profits.

  15. Gainful Employment Metrics • Programs’ Title IV eligibility judged primarily by: • Debt-to-Earnings • Program Cohort Default Rates (pCDR) • Debt-to-Earnings - 30 or More Title IV Completers • pCDR – More Than 30 Title IV Borrowers & > 12% & > 30% > 30%

  16. GE – AACC Proposed Modifications • Focus on programs with high indebtedness—just 9% of all CC GE students take out federal loans. • Programs with a median loan debt of $0 should automatically pass debt-to-earnings & pCDRmetrics. • Remove or limit pCDR for programs with low borrowing incidence. • Reduce the burden on smaller programs (majority of CC offerings) by not requiring initial reporting.

  17. Obama College Ratings system • Administration currently working on higher education ratings system, to take effect for 2015-16 school year. Draft of system delayed to this fall. • Serious effort with extensive stakeholder input. • Proposal calls for eventually tying federal aid to the ratings system; this requires Congressional action. • AACC does not support ratings system – not an appropriate federal role and not relevant to most community college students.

  18. Title IX and Sexual Assault • The issue of sexual assault on college campuses has reached a fever pitch. • Community colleges are not a primary focus, but are deeply implicated • Colleges remain responsible for Title IX compliance. Compliance with complicated law can be difficult. • Colleges also must report information under Clery Act, and new regulations on the Violence Against Woman Act are forthcoming. • Senators McCaskill and Gillibrand have held 3 roundtables; circulated survey on campuses sexual assault, etc., and released results; will be introducing legislation. • AACC establishing legal advisory panel to help guide activity.

  19. Thank You

More Related