2010 Community College Federal Legislative Landscape—After the AGI April 12, 2010 David Baime AACC Senior VP for Government Relations and Research Jim Hermes AACC Director of Government Relations Laurie Quarles AACC Legislative Associate

Overview of Presentation 111 th Congress Update SAFRA/AGI Recap Jobs for Main Street Act FY 2011 Budget & Appropriations Tax Policy WIA Reauthorization Other Legislative Priorities

Second Session of 111 th Congress Health Care Outcome Hardens Partisanship Election Year Makes for Shortened Legislative Calendar Less Rather Than More Will Get Done Many Important Issues on Docket for CCs

Student Aid and Fiscal Responsibility Act (SAFRA) Outcome H.R. 4872, “the Health Care and Education Reconciliation Act of 2010” Signed Into Law March 30 No Republican Votes, Some Democratic Defections Health Care Bill Stymied Senate Action on SAFRA for Five Months Politics of SAFRA and Health Care Became Intertwined at 11 th Hour

SAFRA Summary Re-estimated Bill Savings ($61 Billion Over 10 Years, Compared to $87 Billion in House SAFRA) Fundamentally Altered Legislation AGI, Access and Completion Grants, FAFSA Reform, Perkins Loan Enhancements, Early Childhood Education, etc. - Jettisoned $9 Billion Used for Health Care $10 Billion for Deficit Reduction

SAFRA Summary—Pell Grants Nearly 3 Million Community College Students Receiving Pell Grants Annually Pell Grant Maximum at $5,550 for next 3 Years (However, Appropriators Can Increase or Decrease Discretionary Base in FY 2011 and FY 2012) SAFRA Funds Used to Increase Maximum Grant by CPI in FYs Then, Pell Grant Maximum Set at FY 2017 Level for the Next Two Years Pell Increases Significantly Lower Than Under Obama Plan and House Bill—Rescoring Casualty $13.5 Billion Shortfall Funding Critical to Program Health

SAFRA Summary—Community College and Career Training Grant Program Program Funding Added After AGI and Other Programs Eliminated (Administration Efforts) Program is New, Created in ARRA (Stimulus Bill) $500 Million/Year for FYs Grants Nationally Competitive, Must Serve TAA- Eligible Workers and Meet Other Priorities Each State Assured of $2.5 Million Funding/Year More Program Details Forthcoming

SAFRA Summary—Institutional Aid Same Provisions as in H.R. 3221—Reflect Strong Influence of CBC and CHC $100M/Year for Hispanic-Serving Institutions $15M/Year for Tribally-Controlled Institutions Funding for HBCUs

AGI Aftermath Loss of Initiative Setback for Obama’s Higher Education Agenda That Goes Beyond CCs Signing Ceremony and Rhetoric Reflect Ongoing Commitment to CCs Fall Community College Summit

Jobs Bills House passed the Jobs for Main Street Act, H.R. 2847, Dec. 16 by No GOP Support; 38 Ds Voted “No” $154 billion total funding; $75 Billion From TARP: $ 48.3 billion mostly for infrastructure projects $26.7 billion for public sector jobs, mostly education

Jobs Bills Senate Approach is Different than House with Plan for Several Smaller Bills Senate Democrats Jockeying to Provide Education Funding; New Bill Expected This Week Senate Significantly Modified House Jobs Bill and House Subsequently Approved the Scaled Back Bill President Signed H.R. 2847, the Hiring Incentives to Restore Employment Act, on March 18

Jobs Bills Final Version of H.R Amends the Internal Revenue Code (1)To exempt for-profit and nonprofit employers, including public institutions of higher education, from social security and railroad retirement taxes in 2010 (except for the first calendar quarter of such year) for new employees who are hired after February 3, 2010, and before January 1, 2011, and who certify that they have not worked more than 40 hours during the last 60 days; and (2)To allow an increase in the general business tax credit for the retention of such employees for at least one year at specified wage levels.

Workforce Investment Act (WIA) Reauthorization WIA Reauthorization is Longstanding AACC Priority, and 5 Years Overdue Congress and Obama Want Reauthorization Legislation Enacted in 2010, But Odds are Lengthening Senate Bipartisanship?

WIA Reauthorization AACC General Priorities – System Should Emphasize Postsecondary Training and Credential Attainment – Community Colleges Should be Partners, Not Vendors Specific AACC Priorities: – Provide More Training Capacity Support Authorize Career Pathways Innovation Fund (formerly, Community-Based Job Training Grants) More Contracts, Fewer Vouchers

WIA Reauthorization AACC Priorities – Fund Innovation in Workforce Delivery Regional Organization Sector-Based Initiatives Incentive Grants – Remove Current Impediments to Training Remove “Sequence of Services” Language Streamline Trainer Eligibility – Make Automatic for Public Institutions Accountability Requirements Should Encourage Longer- Term Programs

WIA Reauthorization AACC Priorities: – Strengthen Pathways to Postsecondary Education and Training via Adult Education and Youth Services – Improve Governance and Operations: Streamline and Re-Focus WIBs Directly Support Infrastructure

FY 2011 Obama Budget Introduced February 1, 2010 Assumed Enactment of AGI/SAFRA as Funding Source 7.5% Increase for Dept. of Education Amidst Overall Freeze for Non-Defense, Non-Security Discretionary Programs Proposed Pell Entitlement Proposed Level Funding for Most Higher Education Programs; Modest Increases for Some DOL Career Pathways Innovation Fund (nee CBJTG) Eliminated NSF ATE Program Level-Funded

FY 2011 Appropriations—Community College Funding Priorities Retain Robust Pell Grant Program Increase FY 2011 Funding for Perkins Career and Technical Education (CTE) Programs to $1.4 Billion Restore Career Pathways Innovation Fund Strengthening Institutions (HEA Title III-A) Special Priority Increase Funding for NSF ATE Program to $76 Million

Tax Policy American Opportunity Tax Credit (AOTC) Expires in 2010; President Obama Proposed Making AOTC Permanent in FY 2011 Budget and Indexed to Inflation Vast Improvement Over Hope Scholarship: --$2,500 Maximum Tilted Toward Low-Cost Institutions --“Course Materials” Made Eligible Expense --40% Refundable AACC Goals: Extension; Expansion of Eligible Expenses; Eliminate Pell Grant Offset; Focus on Needier Students

Tax Policy Section 127 of Tax Code: $5,250 of Tax-Free Employer-Provided Educational Assistance Major Boon to Community Colleges; Expires in 2010 Along with Several Bush Tax Cuts AACC Position: Make Section 127 Permanent

Other Legislative Priorities DREAM Act – Support Legislation That Allows Longtime Resident Undocumented Students to Apply for Legal Status, In-state Tuition, and Title IV Aid ESEA (No Child Left Behind) Reauthorization Sustainability – Community College Energy Training Act TANF Reauthorization – Expand Vocational Education Time Limit from 12 to 24 Months

AACC’s 2010 Washington Institute Mark Your Calendar and Plan to Attend AACC’s Washington Institute – November 7-9, 2010 Seminar Designed Expressly for Community College Presidents, Government Relations Directors, and other Senior Administrators Provides Insider’s View of Washington (Politics, Policy, Press, Funding) and Guidance on Positioning Institution Priced to Reflect the Times

Contact Information David Baime Jim Hermes Laurie Quarles