1. COMMUNITY COLLEGE FEDERAL LEGISLATIVE OVERVIEW July 2015 Jee Hang Lee Vice President for Public Policy and External Relations Association of Community College Trustees

2.  Appropriations and Budget  Pell Grants  America’s College Promise  HEA Reauthorization FEDERAL LEGISLATIVE OVERVIEW

3.  House and Senate passed a joint budget resolution in May.  Overall funding for FY 2016 nondefense discretionary is increased by $1.1 billion.  However, funding for the Labor, HHS, Education is decreased by $3.7 billion.  This reduction in funding has resulted in cuts in both the House and Senate FY 2016 Labor, HHS, and Education appropriations bills. APPROPRIATIONS& BUDGET

4.  The House bill dips into the Pell Grant surplus, cutting the program by $370 million.  Many other higher ed programs are level funded under the House bill – SEOG, Work Study, CTE and Adult Ed state grants, WIOA (adult, dislocated, youth).  Title III and V programs see a small uptick, including Title III (A) Strengthening Institutions.  TRIO and Gear UP receive large increases - $60 million and $21 million.  First in the World Grant eliminated  Bill blocks Dept. of Ed from moving forward with regulations for Gainful Employment, state authorizations, teacher preparation, and defining credit hour APPROPRIATIONS & BUDGET HOUSE BILL

5.  Senate bill makes numerous cuts including:  $300 million rescission of Pell Grant funding for FY 2015.  $29 million cut to Supplemental Educational Opportunity Grants  $40 million cut to Federal Work Study  Over $130 million cut from WIOA (Adult, Dislocated, Youth) grants  Adult Basic Education state grants are reduced by $29 million  First in the World and Child Care Access Means Parents in School are eliminated  Funding for all programs supporting MSIs reduced by 3 percent  CTE state grants, TRIO, and Gear Up are level funded  Bill blocks Dept. of Ed from moving forward with regulations for Gainful Employment, state authorizations, teacher preparation, and defining credit hour APPROPRIATIONS & BUDGET SENATE BILL

6.  House and Senate passed their bills out of committee on party line votes. Unlikely to see floor action.  Senate Democrats plan to block all appropriations bill funded under the current sequester caps.  This may force negotiations or a deal on current budgetary restrictions.  Currently at a stalemate. Expect movement in the fall. APPROPRIATIONS& BUDGET

7.  The automatic (CPI) increase in the maximum grant for AY 2015- 16 brought total to $5,775 – a $45 increase.  The Pell Grant program had a surplus for FY 2015, and will likely see a surplus again in FY 2016 and 2017.  Cuts to the surplus could certainly impact future projections  The Pell Grant program is still slated for a cumulative shortfall of $31 billion between FY 2018 and 2025. However, that projection has shrunk from previous years.  In comparison the 2013 and 2014 baselines showed a $56 billion and $38 billion shortfall, respectively. PELL GRANTS

8.  Federal student aid eligibility was restored for ‘Ability to Benefit’ students enrolled in career pathway programs who successfully pass an exam or 6 credit hours.  Award levels differ based on a student’s enrollment date, with new students enrolled after July 1 st eligible for a maximum of only $4,860.  ED has issued guidance on ATB.  Proposals to reinstate Year-Round Pell gaining traction.  Automatic CPI increases to the program run out after 2017. PELL GRANTS

9.  Senator Tammy Baldwin (D-WI) and Congressman Bobby Scott (D-VA) introduced legislation in July.  $80 billion federal-state partnership grant to provide free tuition and fees to qualified students.  “First dollar” program; includes state Maintenance of Effort  State and Institutional Role:  The federal government would fund approximately ¾ of the national- average cost (approximately $3,800) of community college. States would be responsible for the remaining amount.  States must detail how they are implementing innovative funding models.  Community colleges must implement innovative practices and evidence-based reforms to improve student success.  States would also be required to increase coordination among high schools, community colleges, and 4-year public institutions. AMERICA’S COLLEGE PROMISE

10.  Student Qualifications:  Available to first-time students who attend at least half-time and maintain at least a 2.0 GPA.  Can only receive assistance for up to 3 years.  Must be enrolled in a qualified program:  Academic programs would have to offer credits that are fully transferable to 4-year public institutions.  Occupational training programs must have high completion rates, and lead to a degree or certificate in a high-demand field. AMERICA’S COLLEGE PROMISE

11.  The Higher Education Act (HEA) was last reauthorized in 2008.  Reauthorization will focus on a number of issues, which may include:  Simplification of federal student aid  Student debt  Accreditation  Data & transparency  Consumer information  Risk sharing & requirements for all colleges to lend  Program integrity & accountability  Innovative learning models HEA REAUTHORIZATION

12.  Community college priorities for reauthorization include:  Pell: Maintain maximum grant without limiting eligibility; fully reinstate Ability-to-Benefit & Year Round Pell; Revise semester limit from 12 to 14.  Federal Student Loans Limit student borrowing; adjust the aggregate cap based on degree type and enrollment intensity; consolidate loan repayment options; replace cohort default rate with a Student Default Risk Index; simplify FAFSA.  Affordability & Completion: Create state maintenance of effort provision; dual enrollment; promote articulation agreements.  Consumer Information & Accountability: Establish more accurate measures of student success, including transfers; implement a Federal student unit record system linked to wage data. HEA REAUTHORIZATION

13. Thank You