1. AACC Fall Legislative UpdateSeptember 21, 2011

• David Baime

AACC Senior VP for Government Relations & Research

• Jim Hermes

AACC Director of Government Relations

• Laurie Quarles

AACC Legislative Associate

2. AACC Legislative Update
American Jobs Act
Budget Control Act/Deficit Super Committee
FY 12 Funding
TAACCCT Grant Program/TAA Reauthorization
Department of Education Regulations
Committee on Measuring Student Success

3. American Jobs Act
$447 Billion Total Package
$253 billion tax credits and cuts
$194 billion spending
Four Main Sections
Tax cuts for small businesses
Infrastructure and other spending to encourage hiring
Unemployment insurance reform and Pathways Back to Work fund
Payroll tax cut

4. American Jobs Act
Community College Modernization Funds
House Bill: FAST Act H.R. 2948
$30 billion overall for school modernization
$5 billion for community colleges
Distributed by ED to states based on relative community college enrollments
Four-year institutions potentially eligible based on students in sub-baccalaureate programs
At least $2.5 million to each state

5. American Jobs Act
CC Modernization Funds, contd
States have broad discretion to determine methods of intra-state distribution
Funds for modernization, renovation or repair of existing facilities
No new construction
Academic facilities
Facilities at four-year institutions must be accessible by students in sub-baccalaureate programs
States to take into account how green the project is

6. American Jobs Act
Pathways Back to Work
$5 billion fund
$2 billion for subsidized employment for low-income adults
$2 billion for summer and year-round employment for low-income youth
$1 billion for effective work-based employment strategies
Competitive grants to local elected officials and WIBs
Community colleges may partner
Sector-based initiatives, mixed employment and training programs, apprenticeships, etc.

7. American Jobs Act
Other Notable Provisions
$35 billion for K-12 and first-responder jobs
Unemployment insurance reforms may involve training

8. Budget Control Act
Enacted Aug. 2, 2011 (P.L. 112-25)
Federal debt limit raised in stages by $2.1 T
Created 10-year discretionary caps
Provided $17 B for Pell over next two FYs by eliminating in-school interest subsidies on graduate student loans
Requires vote on balanced budget constitutional amendment by 12/31/11
Established Joint Select Committee on Deficit Reduction Super Committee

9. Budget Control Act
Discretionary caps in FYs 12-21 reduce spending by $890 billion over 10 years
For FY 2012 and FY 2013, separate spending caps for security and non-security spending
FY 2012 cap = $1.043 T ($7B below FY 2011 but $24 B higher than House FY 2012 budget)

10. Budget Control Act
Student Aid
Pell Grant program faced an $11.3 B shortfall for FY 2012 but BCA provided $10 B in FY 2012 and $7 B in FY 2013 to address shortfall
Pell Grants still face a shortfall of $1.3 B for FY 2012
Eliminates the in-school interest subsidy for graduate and professional student loans made on or after July 1, 2012
Eliminates repayment incentives on direct loans

11. Budget Control Act
Super Committee
12-member Super Committee charged with producing legislation to reduce deficit by $1.2-$1.5 trillion more over 10 years
Any cuts and/or revenue increases on table
Oct. 14 deadline for other committees to submit recommendations
Super Committee vote by Nov. 23
Congress must vote by Dec. 23 no filibuster, no amendments

12. Budget Control Act
If the Super Committee fails to propose at least $1.2 Trillion in deficit reduction or Congress rejects plan, SEQUESTRATION
If no deal by Jan. 15, 2012, BCA triggers cuts beginning on Jan. 2, 2013
Triggers automatic spending cuts for each of 9 years (FY 2013-2021)

13. Budget Control Act
Sequestration would trigger $55 B/year in defense cuts and $55 B/year in non-defense, including $38 B in discretionary and $17 B in mandatory programs
Several programs are exempt including Medicaid, Social Security, and Pell Grants (for two years)
For FY 2013, estimate of 9% across-the-board cuts to education would start in the middle of the school year
For FY 2014-2021, will not be across-the-board cuts but further program cuts

14. FY 2012 Labor-HHS-Education Appropriations
FY 2012 Begins October 1, 2011
None of the 12 appropriations bills has been enacted
No FY 2012 budget resolution but the Budget Control Act set aggregate appropriations for FY 2012
Congress is working on a continuing resolution (CR) while the appropriations process continues
Partisan dispute about offsets for FEMA funding

15. FY 2012 Labor-HHS-Education Appropriations
Senate Marked Up its FY 2012 Labor-HHS-Education Bill on Sept. 20, 2011
Pell Grant maximum preserved at $5,550 despite shortfall
$100 Million for the Workforce Innovation Fund
$158 billion Labor-HHS-Ed discretionary total due to new budget caps - $308 million below FY 2011
Senate expected to proceed with full committee mark up this afternoon
House has postponed its Labor-HHS-Ed appropriations mark up several times; in lieu of separate bill, an omnibus

16. Trade Adjustment Assistance Act
BaucusCamp Reauthorization Bill
Senate considering this week as amendment to another trade bill
Compromise bill establishes expanded benefits that fall between ARRA authorization and current law
Service industry eligibility
$575 million for training and other services
Continued authorization of TAACCCT program

17. TAACCCT Program
Grant Announcement Expected Very Soon
$500 million for first-year grants must be obligated by Sept. 30
Proposals requesting approximately $3 billion received in first round
90% of proposals from community colleges

18. Department of Education (ED) Regulations
Obama Administration Has Displayed Strong Propensity to Regulate Higher Education
Regulations Not Always Sensitive to Campus Realities and Student Needs
For-Profit Education Primary Target of Regulations; Community Colleges Collateral Damage

19. ED RegulationsGainful Employment
Regulation a Fiasco for Community CollegesHuge New Compliance Burdens With Little Meaningful Cleaning Up of Rotten Apples in For-Profit Sector
Muscle of For-Profit Lobbying Manifested
Widespread Difficulties in CC Implementation
Initial 7/1/11 Disclosures and Initial Reporting 11/1/11
SSA Matches Mark Policy Sea Change

20. ED RegulationsState Authorization
Another Regulation Spurred by For-Profit Abuses
Institutions Must Demonstrate Compliance With State Authorization Requirements Wherever They Offer Programs; Huge and Negative Implications for Distance Learning
Regulation Thrown Out in Court
Private Efforts are Underway to Rationalize and Simplify State Efforts

21. ED RegulationsProgram Integrity, Etc.
Three Year Default Rates and Higher CC Defaults are Coming
New Satisfactory Academic Progress Standards Have Created Problems
New Verification Procedures Laborious
Low FAFSA Application Rates Still an Issue

22. Committee on Measuring Student Success
Committee Created by Congress in 2008 HEA Amendments to Review and Suggest Changes to Two-Year Graduation Rate Calculation
Chaired by Head of CCRC and Nearing Completion of Work
ED Will Next Decide How to Implement; IPEDS Route Likeliest
Big Opportunity for Community Colleges

23. Contact Information
David Baime
202-728-0200 x224, dbaime@aacc.nche.edu
Jim Hermes
202-728-0200 x216, jhermes@aacc.nche.edu
Laurie Quarles
202-728-0200 x249, lquarles@aacc.nche.edu