1. COMMUNITY COLLEGES AND WASHINGTON, DC COMBASE, SEPT 23, 2017
David Baime
Senior Vice President of Government Relations and Policy Analysis

2. Topics General Environment for CCs and Higher Education/Campus Climate
Trump Administration Personnel
Congress
DACA
FY 2018 Funding
Higher Education Act Reauthorization
Perkins Act Reauthorization/Workforce
Negotiated Rulemaking/Regulatory Relief
Tax Reform

3. General Environment For CCs and Higher education/Campus Climate
Complicated environment with mixed messages
Support for Role and Value of CCs (Public Agenda, AP Survey Results)
Broad Loss of Support for Higher Education, Especially Among Republicans (especially more affluent and educated)
Debt Issues Highly Salient and Greatly Misunderstood
Community Colleges Not Associated with Much of Campus Climate Debate
CCs are Losing Students to 4 Year Colleges

4. Trump Administration Personnel
Key Posts Remain Unfilled at ED and DOL
No ED Under Secretary (Kanter/Mitchell post); ED Asst. Secretary for OCTE or Postsecondary Education; DOL ETA Assistant Secretary
New Administrative Position in Student Aid Office
AACC Has Made Significant Outreach to New and Familiar Faces

5. CONGRESS Lack of Productivity Continues Trump Dynamics All New
Fiscal/Mandatory Programs Policy is Fundamentally in Chaos, One Result is Squeezing of Domestic Investment
Senate HELP Committee Chair Alexander & Ranking Member Murray Relationship Has Frayed but Both are Pragmatists
Rep. Foxx Retains Huge Power
CCs Have Lots of Allies in Both Chambers & Both Parties

6. DACA
Six Month Phase Out Announced September 5, Triggered by State AGs Lawsuit; Broad Public Shock
Renewals Processed Through October 5
Congress Under the Gun to Act
Quick and Fervent Community College Response; AACC Has Mobilized Members
Optimism Remains About Potential Solution Despite Charged Nature of Immigration Debates – DREAMERS/DACA are Perceived Differently from Other Undocumented Residents
Trump/Democrat/Republican Deal?

7. FY 2018 Funding
Less Crazed Than Usual Because of Trump CR Deal with Democrats on Disaster Relief, FY 18 Funding, and Debt Limit
For FY 2018, Domestic Discretionary Caps Broadly Perceived as Inadequate, Need to be Raised; AACC Urging Their Expansion
Full House Has Passed Labor-HHS-ED Legislation
Senate Appropriations Committee Has Approved Bill
Final Enactment Won’t Occur Until Late 2017 at Earliest

8. FY 2018 Funding Highlights
Pell Grant Program: House Freezes Maximum Grant and Cuts Surplus by $3.3 billion; Senate Boosts Maximum by $100 and Cuts Surplus by $2.6 billion
WIOA: House Cuts Programs, Some Deeply; Senate Level-Funds
Most Other Programs of Interest Level-Funded
Apprenticeships Cut by House, Restored by Senate
Deal on Overall Spending Could Help, Especially With Surplus (Note House Floor Amdt Shifting TRIO $ to Perkins)

9. Higher Education Act (HEA) Reauthorization
Committees, Especially House, State Intent to Act in 2017, But Will They?
Administration Deferring to Hill by Default
Role, Value, and Effectiveness of High Ed are Major Themes
No New Money and “Simplification” Prominent Concepts
Accreditation, Risk-Sharing Remain/Accountability CC Worries
Dems Staking Out Own Agenda
Loan Programs, Subsides, etc. Will Be One Key Focus

10. HEA Reauthorization Positions
Preserve and Enhance the Pell Grant Program
Index Annual Maximum Grant to CPI
Provide $ for Short-Term Training
“Pay Fors” an Issue
Transparency and Measurements
Add 300% of “normal time” graduation rate for community colleges – legislation has been introduced (S. 351).
Create a national student unit-record data system to effectively track student enrollment, completion, and earnings. (S. 1121, H.R. 2434)
Risk Sharing
Oppose new financial penalties or sanctions tied to loan repayment rates or defaults

11. HEA Reauthorization Positions
Accreditation – AACC Largely in Defensive Crouch
Loans
Give colleges the ability to lower loan maximums in defined circumstances
Prorate borrowing limits with enrollment intensity a la Pell Grants
Eliminate link between default rates and Pell eligibility
Simplify and consolidate Direct Loan repayment options with low-debt borrowers in mind

12. Perkins Act Reauthorization
Reauthorization Passed House Overwhelmingly in Summer
AACC Supported Legislation
Better alignment with WIOA
Career pathways enhancement
Improved integration with business
Maintained basic funding structure
Senate Stand-Off Over State Role
AACC priorities: emphasizing connections between Perkins recipients and businesses and industries; streamlining and aligning CTE performance indicators with WIOA.

13. Negotiated Rulemaking/Regulatory Relief
General Trump Administration Review of Regulations
ED Accepting Comments – AACC Has Submitted and Will Testify
Much of GE Has Been Rolled Back
Gainful Employment and Borrower Defense to Repayment Neg Reg Coming Up
Overall Punitive Posture of ED Towards Colleges is More Problematic Than Any Single Regulation

14. Tax Reform
Tax Reform Top Congressional and Trump Priority But May Morph Into More Traditional Tax Cut Bill
Apprenticeships Possibly on Table – But What Gets Employers to Play?
Likely Use of Reconciliation to Expedite
AACC Seeking “Fix” to AOTC to Benefit Neediest Students and Improvement of Lifetime Learning Credit
CC Concerns Include:
Modification of Charitable Deduction
State and Local Tax Deduction
Tax Exempt Bonds Financing
Section 127

15. Thank you!
David Baime