1 Federal Policy Making….. Make Some Noise! Tami Sato, Southern CA College of Optometry Vicki Shipley, National Council of Higher Education Loan Programs (NCHELP) WASFAA Conference April 2009

2 Agenda  Process Overview and Key Players −House −Senate −Administration  Role of the Department of Education  Your Role and Responsibilities  Make Some Noise!

3 Why Should You Care?  The majority of student aid is the product of and exists within some sort of political environment −National politics −State politics −Institutional politics  Understanding the basic concepts and structures can help you anticipate change and possibly influence the process

4 Legislation vs. Regulation  Legislation −Congress adopts with Presidential signature or after overriding a veto −Amends the U.S. Code -- the “statute” (e.g., Higher Education Act)  Public Laws (111-XX)

5 Legislation vs. Regulation  Regulation −Promulgated by appropriate federal agency U.S. Department of Education for higher education programs Reviewed by Office of Management and Budget (OMB) −Interprets and adds detail to statute  Amends Code of Federal Regulations (C.F.R.)

6 LEGISLATIVE PROCESS (In a nutshell….so to speak!)  Authorization Legislation: Introduced by a Representative or Senator to Amend or Create a Federal Statute −Legislation assigned to “Committee(s) of Jurisdiction” −Chairman assigns to Subcommittee −Hearings held on major legislation −Higher Education Act to be “Reauthorized” every six years  Appropriations Legislation: Sets Annual Funding Levels for Federal Programs (aka discretionary spending) via Budget Bills

7 LEGISLATIVE PROCESS (It Takes Two To Tango!)  Other Chamber (House or Senate) Must Act -- Two Options: − Considers similar legislation at its own pace Passes a bill that can be matched up with one passed by the other chamber Differences must be reconciled before enactment is possible − Receives legislation after other chamber acts May approve identical bill or make amendments  “Back & forth” process, until identical bill is approved

8 What Happens in the Conference Committee?  Differences between the House and Senate versions are reconciled  Must be re-voted on again in each chamber  Sent to the President for signature  Pro: Differences are ironed out and compromises are reached  Con: Not a public process, seen by some as “undemocratic”

9 LEGISLATIVE PROCESS (Final Action) −Conference Committee Attempts to resolve differences between House and Senate-passed bills Result is a “Conference Report” -- includes explanatory language and recommendations Identical Conference Report must be approved by House and Senate before it can be sent to the President President signs or vetoes

10 New Congress - 111th  Senate −Was 51 Democrats – 49 Republicans −Now 56 Democrats - 41 Republicans Plus 1 Independent and 1 Independent Democrat Minnesota race will be determined by courts  House −Was 236 Democrats -198 Republicans One vacancy −Now 254 Democrats – 178 Republicans Three vacancies

11 Education & Labor Committee Higher Education, Lifelong Learning & Competitiveness Subcommittee George Miller (D-CA) Chairman Howard P. “Buck” McKeon (R-CA) Ranking Member Rubén Hinojosa (D-TX) Chairman Brett Guthrie (R-KY) Ranking Member

12 Health, Education, Labor & Pensions Committee Children & Families Subcommittee Edward Kennedy (D-MA) Chairman Michael Enzi (R-WY) Ranking Member Chris Dodd (D-CT) Chairman Lamar Alexander (R-TN) Ranking Member

13 Budget “Basics”  Congress controls the purse!  Budget committees formulate a budget resolution  Reconciliation instructions are optional  Reconciliation protects budget measures from parliamentary hurdles such as filibusters to ensure timely completion  Reconciliation instructions lead to the development of legislative changes to programs under the jurisdiction of the authorizing committees

14 President’s 2010 Budget Proposal  Loan Proposals −Due to “turmoil” in the financial markets, the President’s budget requests that Congress end the entitlements for financial institutions that lend to students by eliminating the FFEL Program by 7/1/10 −Makes campus-based aid more widely available through a modernization of the Perkins Loan Program

15 Budget Proposals--Higher Education  Pell Grants −Pell Grant = $5,550 maximum in −Indexes Pell Grants to the Consumer Price Index plus 1% −Makes the Pell Grant program mandatory  College Completion & Access −Permanent $2500 American Opportunity Tax Credit −Create a new five-year, $2.5 billion Access and Incentive Fund to support low-income students graduate from college −Includes evaluation component to ensure best practices −Triples number of graduate fellowships in science

16 Obama Vows Budget Fight For His Priorities  “With the magnitude of the challenges we face right now, what we need in Washington are not more political tactics – we need more good ideas. We don’t need more point-scoring – we need more problem-solving.”  Obama challenged his critics to offer “constructive, alternative solutions.” Source: CQ Today 3/17/09

17 Budget Process – The Role of Congress  Budget Bills −House Bill Includes reconciliation instructions to Education and Labor Committee to reduce budget by $1 B −Senate Bill Does not include similar reconciliation instructions Includes amendment by Senator Lamar Alexander  “to maximize higher education access and affordability by ensuring that institutions of higher education and their students are able to continue to participate in a competitive student loan program, in order to maintain a comprehensive choice of student loan products and services.”

18 Budget Process – Citizen Impact on Congress  Senator Alexander’s Amendment was due to him hearing from constituents −Letters to the Senator from school groups −Expressions of concern to other members of Congress over the past few weeks 1,000 phone calls 1,200 faxes 4,000 s −Consumer Bankers Association electronic petition 6,000+ signers

19 New Department of Education  Arne Duncan -- Secretary of Education −Martha Kanter – Nominee for Under Secretary −Carmel Martin -- Assistant Secretary for Planning, Evaluation and Policy Development −Marshall Smith – Special Assistant −Robert Shireman – Special Assistant −Dan Madzelan – Acting Assistant Secretary

20 Negotiated Rulemaking (Neg Reg) Secretary of Education’s Responsibility  Advise Congress −Propose Legislation −Provide Technical Assistance −Assist with Constituent Issues  Regulates Where Needed  Enforces Laws and Regulations  Communicates with Interested Parties and the Public

21 Negotiated Rulemaking (Neg Reg)  Required by the HEA (Section 492A)  All parts of Title IV – All the time  Goal: To develop Notices of Proposed Rulemaking (NPRM) that reflects a final consensus of the negotiating committee  Consensus: There must be no dissent by any member of the committee (includes ED) to have reached consensus

22 Neg Reg  Your Role During Neg Reg −Know who represents your segment or interests −Follow the issues (IFAP, NASFAA)  Your Role After Neg Reg −Review NPRM in Federal Register −Respond within comment period  Send Comments to Department of Education (see Federal Register) w/copy to: −Federal Relations Committees −NASFAA

23 Keep Track of What’s Happening In DC  Read, read, read…..  Conferences and workshops  Networking  Listservs  Webinars  Web sites

24 Be Heard!  YOU ARE THE EXPERT!  Stay in touch ( , phone, in person) with your Congressional/State legislative members. Get to know their staff  Be sure they know who you are, what you do and the students you serve – be a trusted resource  Invite members of Congress/state legislature and/or their staff to tour your facilities  Respond to NPRM’s  Volunteer to be on state and WASFAA and NASFAA committees

25 Put a Face on It!  Personalize sample/template letters  State how proposal(s) would affect your students  Provide student success stories  Develop a fact sheet for your college  Use stats and numbers

26 Ten Tips for a Good Letter  Personalize your letter −Tell a story What’s the impact on:  a student  your school  your office  your state  Use facts – politicians like numbers!  Use personal stationery (or send an )  Thank them for their vote or position  Request a follow up letter

27 Ten Tips for a Good Letter  Address it correctly The Honorable (name) United States (Senate or House of Representatives) Washington, DC  Send it to the appropriate office  Keep your comments short and to the point  Include contact information  Include an “ask”

28 How do YOU get involved?  Know your stuff −Association advisories −Lender and guarantor updates −Other sources?  Make friends before you need them −Congressional staffers −Members of Congress  Communicate, communicate, communicate −Write a letter, make a call, send an , smoke signals, tin cups with a string

29 Thank You!

30 QUESTIONS