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Key Federal Issues for Independent College Presidents

Explore key federal issues impacting independent college presidents, including budget cutting, Pell Grant options, fraud regulations, tax provisions, for-profit sector challenges, and state-federal convergence. Learn about critical financial responsibility standards and a new NAICU Task Force.

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Key Federal Issues for Independent College Presidents

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  1. Key Federal Issues for Independent College Presidents Appalachian College Association Asheville, NC June 14, 2011

  2. Budget Cutting • Balanced Budget Amendment proposals • Bipartisan Fiscal Commissions • Debt Ceiling bill will carry cuts • Global Caps • Focus on Discretionary Spending

  3. Budget Big Picture: President’s FY 2012 Outlays $3.7 Trillion in Total Spending

  4. Budget Big Picture: Sliced(FY 2012 Budget Request, in Billions)

  5. Budget Big Picture: Diced (FY 2012 Budget Request, in Billions)

  6. Budget Cutting

  7. Budget Cutting:Pell Grant Options • Need $11 billion more to keep $5,550 Pell max • Year Round Pell already eliminated • Options • Cut the maximum grant by $2,000 • Eliminate less than half-time students • Eliminate ATB • Eliminate living allowances for 100% on-line • Reduce total years from 9, to 5 or 6 • Lower Pell max for early years, or after 4 years • Lower Pell for 12 credits v. 15 credits • Living/ asset allowances to pre-2007 system • Maximum income cap • Raise minimum award • Eliminate In-school interest subsidy

  8. Fraud and Abuse Regulations • Credit Hour • State Authorization, including Distance Ed • Incentive Comp • Misrepresentation • High School Verification • Gainful Employment

  9. Other Regulations • IPEDS reporting changes • Net Price Calculators • College Cost Watch Lists • FERPA

  10. Tax • Higher Ed expiring provisions • IRA Charitable Rollover • Tuition Deduction • December 31, 2011 • AOTC • Section 127 • Student Loan Interest Deduction • Coverdell ESAs • December 31, 2012 • No one wants to increase taxes • Action later this year

  11. For-Profits • Sen. Harkin hearings and findings • Heavy lobbying by for-profits • Student Aid: • What we know about for-profit education • Consequences if fraud issues aren’t addressed • What if government over-regulates?

  12. Accreditation Being deputized as a federal agent? • To determine student learning outcomes? (new credit hour definition) • To police for-profit institutions?

  13. State-Federal Convergence • K-12 reform becoming P-L reform – with national standards at state level • State authorization regs have set off new conversation • Federal/state budget cuts affecting all • Teacher Preparation

  14. College Completion: 2020 • Goal is positive and widely endorsed as an important national conversation • Obama administration manifestation risky for higher ed • Sector focus (community colleges) • State-based benchmarks, reform model • Building Blocks to 2020

  15. Financial Responsibility Standards • New NAICU Task Force – Kent Chabotar, Chair • Encompasses: • Policy Issues • PR Issues • Political Issues

  16. Key Federal Issues for Independent College Presidents

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