Key Federal Issues for Independent College Presidents Appalachian College Association Asheville, NC June 14, 2011

Budget Cutting Balanced Budget Amendment proposals Bipartisan Fiscal Commissions Debt Ceiling bill will carry cuts Global Caps Focus on Discretionary Spending

Budget Big Picture: President’s FY 2012 Outlays $3.7 Trillion in Total Spending

Budget Big Picture: Sliced (FY 2012 Budget Request, in Billions)

Budget Big Picture: Diced (FY 2012 Budget Request, in Billions)

Budget Cutting

Budget Cutting: Pell Grant Options Need $11 billion more to keep $5,550 Pell max Year Round Pell already eliminated Year Round Pell already eliminatedOptions Cut the maximum grant by $2,000 Cut the maximum grant by $2,000 Eliminate less than half-time students Eliminate less than half-time students Eliminate ATB Eliminate ATB Eliminate living allowances for 100% on-line Eliminate living allowances for 100% on-line Reduce total years from 9, to 5 or 6 Reduce total years from 9, to 5 or 6 Lower Pell max for early years, or after 4 years Lower Pell max for early years, or after 4 years Lower Pell for 12 credits v. 15 credits Lower Pell for 12 credits v. 15 credits Living/ asset allowances to pre-2007 system Living/ asset allowances to pre-2007 system Maximum income cap Maximum income cap Raise minimum award Raise minimum award Eliminate In-school interest subsidy Eliminate In-school interest subsidy

Fraud and Abuse Regulations Credit Hour State Authorization, including Distance Ed Incentive Comp Misrepresentation High School Verification Gainful Employment

Other Regulations IPEDS reporting changes Net Price Calculators College Cost Watch Lists FERPA

Tax Higher Ed expiring provisions IRA Charitable Rollover IRA Charitable Rollover Tuition Deduction Tuition Deduction December 31, 2011 AOTC AOTC Section 127 Section 127 Student Loan Interest Deduction Student Loan Interest Deduction Coverdell ESAs Coverdell ESAs December 31, 2012 No one wants to increase taxes Action later this year

For-Profits Sen. Harkin hearings and findings Heavy lobbying by for-profits Student Aid: What we know about for-profit education What we know about for-profit education Consequences if fraud issues aren’t addressed Consequences if fraud issues aren’t addressed What if government over-regulates? What if government over-regulates?

Accreditation Being deputized as a federal agent? To determine student learning outcomes? (new credit hour definition) To determine student learning outcomes? (new credit hour definition) To police for-profit institutions? To police for-profit institutions?

State-Federal Convergence K-12 reform becoming P-L reform – with national standards at state level State authorization regs have set off new conversation Federal/state budget cuts affecting all Teacher Preparation

College Completion: 2020 Goal is positive and widely endorsed as an important national conversation Obama administration manifestation risky for higher ed Sector focus (community colleges) Sector focus (community colleges) State-based benchmarks, reform model State-based benchmarks, reform model Building Blocks to 2020

Financial Responsibility Standards New NAICU Task Force – Kent Chabotar, Chair Encompasses: Policy Issues Policy Issues PR Issues PR Issues Political Issues Political Issues

Key Federal Issues for Independent College Presidents