1. Federal Education Policy Update
April 19, 2018
NCASA
Leslie Finnan
Senior Legislative Analyst, AASA: The School Superintendents Association

2. Overview Funding Taxes Higher Education Vouchers DACA Other Issues
Questions

3. FUNDING

4. FY17 Funding Package
$68.2 b for USED at base level, but when we account or $1.3 b rescission to Pell, the level is $66.9($1.1 below FY16)
ESSA
Title I increased by $550 m ($450m from SIG), still short at LEA level
Title II cut by $294m (13%) to $2.1 billion
Title IV funded at $400 m (revert to competitive?)
Other
IDEA receives $90 m increase (still at just 16% of federal share)
Impact Aid up $23m to $1.3b
21st Century up $25 m
Charter Schools up $9m
Head Start up $85 m
Includes reauth of DC voucher program

5. FY18 trump Budget Proposal
FY18 Priority: Very real deep cuts.
Parity between defense/non-defense discretionary
$54b increase for defense discretionary; paid for with $54 b cut to NDD
$9 b (13%) cut to USED
$1.4 b increase for school choice/privatization
$1b for Title I portability; $250 m for vouchers; $168 m for charters
Cuts IDEA and Title I local allocations, as well as Carl D Perkins (Career/Tech)
Eliminates Title IIA, Title IV and 21st Century Community Learning grants
Eliminate 20 other categorical grants

6. FINAL FY18 DEAL
Final budget deal raised caps ($80 b for DD, $63 b for NDD)
$1.3 trillion, with $579 for NDD overall
$3.9 b increase to USED (to $70.9 b)
If USED FY12 allocation ($68.1 b) kept pace with inflation, it would be $74.8 b in constant dollars
Rejects new choice proposals (does fund DC vouchers)
Head Start up $610m
ESSA Title I up $300 m, Title II level funded, Title IV up $700 m to $1b
$275 m increase for IDEA state grants
$75 m increase for Perkins
$3 b increase for programs to respond to opioid crisis
Impact Aid increase of $86 m
First year of funding for SRS since 2015

7. Rescission Threats
Because of a little-known law, President Trump can rescind specific elements of the funding bill he signed (with Congressional approval)
The Administration will likely release a $60 billion rescission package in the next few weeks
Likely to include significant education cuts
Not likely to pass the Senate
McConnell has expressed concern

8. President released his FY19 budget proposal on Feb 12
$63.2 b to USED, a cut of $3.6 b/5%)
Continues prioritization of privatization
Budget proposal was modified to reflect cap increases, but those additional dollars went largely to doubling the amount available for choice (from $500 m to $1 b)
Eliminates: Title II, Title IV, 21st Century, Teacher Incentive Grants, Comprehensive Lit Grants, Forest Counties
Cuts: Impact Aid, Medicaid, SNAP
Freezes Title I, nominal increase to IDEA, freeze REAP, small increase to Perkins, cut to program that would support opioid abuse prevention

9. Tax reform – why we care
SALT-D – reduction of the state and local tax deduction
This could tie the hands of districts to raise local taxes, because that money would be double-taxed by the local district and the federal government
Would most definitely lead to lower education spending at the local level – especially in a high-tax state like New York
Vouchers – expansion of 529 plans
Expands 529 college savings plans to be used for K-12 private schools as well
Most state tax legislation echoes federal legislation, so this would expand state 529s as well
Qualified Zone Academy Bond (QZABs)
Repeals tax-exempt status for bonds, thus increasing the interest rates available to school districts and the long-term costs
$1.5 trillion added to deficit
Will pressure Congress to make cuts elsewhere, may trigger more across- the-board sequester cuts

10. Federal Student Loan Forgiveness/Grant Programs
Public Service Loan Forgiveness
If a teacher makes 10 years of on-time income-based payments, the remainder of the loans are forgiven
Teacher Loan Forgiveness
If a teacher works in a low-income school for five years, he/she can have up to $17,500 (math, science, or special education) or $5,000 forgiven
Perkins Loan Cancellation
Forgives federal Perkins loans for teachers for each year spent teaching at a low-income school or ESA or a high-needs subject area
TEACH Grants
Up to $4,000 per year given to college students who have an expressed interest in teaching in a low-income school. The graduate must teach at least four of the eight years following graduation in a low-income school or ESA

11. Higher Education Act Reauthorization, House
The House committee passed partisan (GOP) bill – the PROSPER Act
Eliminates all of Title II – teacher preparation programs
Eliminates TEACH Grants
Eliminates public service loan forgiveness
Creates “one loan, one work-study, two repayment plans” framework
Teachers would have the same options as every other graduate
Looking for time on the floor – Chairwoman Foxx spent last weekend whipping votes and held a Republican briefing this morning

12. Higher Education Act Reauthorization, Senate
Senator Alexander was insistent on a bipartisan, comprehensive bill
Has not released anything beyond rumors
His priorities are FAFSA simplification, repealing Obama-era regulations
Senator Murray is too concerned about ESSA implementation to pursue a comprehensive reauthorization
Her priorities are affordability and accountability
What’s next?
Partisan (GOP) bill may be released, dead on arrival
Smaller bills may be released, probably also dead on arrival

13. Impact Aid Voucher Proposal
What is happening?
Republicans recently introduced the Military Education Savings Accounts Act (HR 5199 / S )
Creates a private school voucher program for students with an active-duty parent in the military
Will likely be attached to National Defense Authorization Act in the next few weeks
The program will drain dollars from the Impact Aid program. Instead, a few military- connected students will be eligible for a $2500 voucher that they can use at a private school, online school, summer camp, afterschool programs or for homeschooling.
Impact Aid school districts could lose up to $450 million dollars or 39% of the total funding for the program
What can we do?
Contact your Members of Congress now!

14. North Carolina Congressional Contacts – IMPACT Aid
Title
Name
District
Defense Staffer
Staff
Senator
Richard Burr
Cole Lyle
Thom Tillis
Bo Prosch
Congressman
George K. Butterfield 1
Kyle Parker
George Holding 2
Curtis Rhyne
Walter B. Jones 3
Raymond Celeste
David E. Price 4
Samantha Schifrin
Congresswoman
Virginia Foxx 5
Jason Harvey
Mark Walker 6
Ryan Walker
David Rouzer 7
Ian Whitson
Richard Hudson 8
Shaun Taylor
Robert Pittenger 9
Marco Sylvester
Patrick T. McHenry 10
Krista Stafford
Mark Meadows 11
Chad Yelinski
Alma S. Adams 12
Katherine Stewart
Theodore Budd 13
Alex Vargo

15. DACA President Trump ended the DACA program AASA opposes this change
Gave Congress six months to come up with an alternative – they didn’t
Impacts about 250,000 students
AASA opposes this change
Resources posted to our blog
Advice to schools:
Know your rights – ICE agents are not allowed on school grounds
Do not collect information you do not want to share – especially immigration status of students or parents

16. Where is DACA Now?
In February, in exchange for Senator Flake’s vote on the tax bill, Congress voted on four different immigration bills
They ALL failed
It was suggested that DACA be included in the March appropriations bill
It was not
Courts have ruled that President Trump cannot end the program, so current recipients are in limbo
It is very unlikely anything will happen outside the courts this year

17. Healthcare Medicaid: CHIP:
House bill (AHCA) and Senate bills (first BCRA, then Graham-Cassidy) would change the way Medicaid is funded
Would create block grant to states – allowing states to decide which institutions to reimburse
Would also lead to lower funding levels
CHIP:
Provides health insurance for low-income children not covered by Medicaid
Many students on CHIP receive health care in schools as a part of the Medicaid program
Funding expired in October – was finally reauthorized after over 100 unfunded days as part of the shutdown negotiations

18. Perkins CTE 114th Congress 115th Congress
House passed bipartisan legislation in July to reauthorize Perkins, Senate didn’t take action
115th Congress
In June, the House passed a very similar bill
There is much to like in the bill
Addresses the onerous administrative requirements for Perkins funding
Addresses paperwork burden by allowing districts to fill out a simple, easy-to- complete local application
Streamlines the accountability system and aligns performance measures with those set by each state under ESSA

19. School Nutrition 114th Congress 115th Congress USDA Actions
House and Senate introduced bills last year, did not make it out of Committee
115th Congress
Attention in the Senate to be on the Farm Bill instead this year
USDA Actions
Secretary Purdue signed proclamation ordering flexibilities
Essentially status quo
Holding sodium limits at Target I
Allows for waiver of whole grain requirement to 50%
Allows 1% flavored milk to be served
Also recommending some flexibility for hiring, especially in rural areas

20. Farm Bill
Yesterday, the House Agriculture Committee passed a bill through the Agriculture Committee (26-20) to reauthorize the Farm Bill, which includes SNAP (formerly Food Stamps)
The bill increases work requirements for SNAP recipients
Could cause more than 1 million low-income households with about 2 million people to lose their benefits altogether or have them reduced – particularly low-income working families with children
Narrows categorical eligibility – lowering eligibility for SNAP
Directly impacts schools using categorical eligibility to enroll students in lunch and breakfast programs

21. Early Learning Child care as a Trump (family) priority
Democrats released a comprehensive bill last year
Provides financial incentives to states to beef up their programs for 3 and 4 year-olds in high-quality preschools
Increases workforce training and compensation
Broader support for Head Start
Child care tax credit increased in tax proposal – does not necessarily lead to quality
Goes primarily to higher income households

22. AASA Legislative Agenda
ESSA
Student Data & Privacy
School Nutrition
Charters
Perkins Career/Tech
Higher Education Act
IDEA
Early Education
Rural Education (REAP, Forest Counties, Impact Aid)
Affordable Care Act
Regulations: DoL and EPA
School Vouchers
Immigration / DACA
E-Rate/Lifeline/EBS
More?

23. AASA Policy & Advocacy Team
Noelle Ellerson Ng @noellerson
Sasha Pudelski @spudelski
Leslie Finnan @LeslieFinnan

24. Questions?