On July 31, 2012, the AACC government relations team discussed recent developments in Washington that affect community colleges. Topics included funding for Pell Grants and other key programs, Workforce Investment Act reauthorization, the Obama administration's executive order on veteran students, the latest on gainful employment and other regulations, and more.

1. AACC Federal Legislative Update
July 31, 2012
AACC Office of Government Relations and Research
David Baime, Senior Vice President
Jim Hermes, Director
Laurie Quarles, Legislative Associate

2. AACC Legislative Update
• Political Landscape
• FY 2013 Spending Bills
• WIA Reauthorization
• ED’s Perkins Blueprint
• Executive Order on Veteran Students
• Transfer Legislation
• ED Regulations
• Your Actions That Can Make a Difference
• Washington Advocacy Seminar

3. Political Landscape
• Decisions on Spending, Taxes and Other Critical
Issues Deferred Until After Election
– Scheduled expiration of Bush tax cuts and
sequestration driving agenda.
– Elections impact substance and timing of outcome.
– Few legislative days between now and Nov. 6.
– AOTC of great import for community colleges.
– Student loan interest rate fix for one year only.

4. Sequestration Looms
• Sequestration: Across-the-Board Cuts Of 8-
9% on January 2, 2013
– Pell Grants (for one year) and many entitlement
programs exempt.
– Huge blow to education and workforce training
programs.

5. Sequestration Looms
• Bipartisan Agreement that Sequestration Must
be Avoided
– No agreement yet on how to do so.
– Defense cuts have driven issue, domestic cuts
gaining attention.
– AACC has joined broad coalition on domestic
front.
– Delay the most likely outcome?

6. FY 2013 Labor, HHS, ED
Appropriations
• Legislation Passed by Senate Appropriations
Committee (6/14) and House Subcommittee (7/18)
• House Provides $7 Billion Less Than Senate
– Large reductions from ―Obamacare‖ and other
politically-charged programs allowed numerous
programs to receive level funding.
• Reconciliation of Bills Not Likely Until 2013

7. FY 2013 Appropriations
• Bills Level-Fund Several Key Education and
Labor Programs
– Pell Grant maximum award will increase to $5,635
(due to $85 mandatory-funded increase).
– Some program-level data not yet available for
House bill.

8. Program FY 12 FY 13 Senate FY 13 House
Pell Grants Max. $5,550 $5,635 $5,635
Perkins CTE State $1,123,030,000 $1,123,030,000 $1,123,030,000*
Grants
Adult Ed. State $594,993,000 $594,993,000 $594,993,000*
Grants
Title III-A $80,623,000 $80,623,000 TBD
Strengthening Insts.
Title V HSIs $100,432,000 $100,432,000 TBD
TRIO $839,392,000 $839,392,000 TBD
DOL State Formula $2.63 billion $2.6 billion $2.6 billion
Programs

9. FY 2013 Appropriations
• Key Differences Between House and Senate
– Senate: Partial restoration of Title IV eligibility for
ATB students in career pathway programs.
– Senate: Elimination of living and other expenses
for Pell Grants for 100% online students.
– House: Prohibits ED from implementing several
regulations (more on that to follow).

10. Pell Grant Program
• For FY 2013, Program Finances are in Good
Shape—i.e., ―No Shortfall‖
• For FY 2014, Large Program Deficit Returns
– Exact size depends on legislative actions and
enrollment behavior/broader economy.
– FY 2014 will witness return of debate on how to
trim program; community college students remain
vulnerable.

11. Workforce Investment Act
• House Education and Workforce Committee
Approved WIA Reauthorization Bill, H.R.
4297, in June
– Floor consideration not scheduled.
– No signs of Senate activity.
• H.R. 4297:
– Consolidates 26 job training programs into one
―Workforce Investment Fund‖

12. WIA Reauthorization
– Allows governors to consolidate additional
programs, including adult education, at state level.
• Perkins CTE funds cannot be consolidated.
– Eliminates supportive services and priority for
low-income individuals.
– Requires 2/3 business majorities on state and local
WIBs.
– Streamlines eligible trainer reporting requirements.

13. WIA Reauthorization
– Allows more contracting between WIBs and
institutions of higher education.
– Diverts Perkins and other program funds to pay for
infrastructure.
• House Democrats’ WIA Bill: H.R. 4227
– No consolidation.
– Line item for infrastructure spending.
– Automatic trainer eligibility for public institutions.
– Significant emphasis on career pathways, industry
sectors, regional cooperation.

14. Dept. of Education Perkins Act Blueprint
• ED Released With Fanfare in April
• First Major Action in Perkins Reauthorization
• Congressional Focus Not Expected Before
2013
• Obama Loss Would Mean Short Shelf Life
• Presidential Administrations Usually Want to
Re-Engineer Program

15. ED Perkins Blueprint
• Proposals Divided into Four Major Categories
– Alignment
• CTE defined to span from secondary to postsecondary.
• Increased alignment with industry needs – states identify
key sectors.
– Collaboration
• Competitive funding within states exclusively to consortia
of LEAs, postsecondary institutions (and others).
• State-level private sector match requirement.

16. ED Perkins Blueprint
– Accountability
• National definitions for participation and performance
measures.
• Eventual use of performance-based funding.
– Innovation
• States need to show willingness to transform CTE
system to receive funds.
• National-level CTE Innovation and Transformation
Fund.

17. Executive Order on Veteran Students
• President Obama Issued Executive Order Calling
ED, VA and DOD to Establish Principles of
Excellence for Institutions Serving Service
Members and Veterans
– Principles touch on academic planning, marketing
and recruiting practices, student outcome
information, and other institutional practices.
– Departments working to further define principles.

18. Veterans Executive Order
– VA has communicated with institutions asking
them to pledge to follow principles.
• Deadline August 1, but institutions still able to get on
list after that date.
• List of pledged institutions on VA site at
http://www.gibill.va.gov/resources/education_resources/
Principles_of_excellence/poe_list_2012.html.
• Departments developing further guidance for
institutions.

19. Department of Education Regulations
• Gainful Employment Regulations Largely Vacated by
District Court (loan metrics portion); Disclosure
Requirements Retained
– Suit brought by APSCU (for-profit institutions).
– House FY 2013 Labor-HHS-ED bill annuls regulation.
– Ball in ED’s court with next steps unclear.
• Upcoming Negotiated Rulemaking on Pell Grant
Fraud, Debit Cards
• House Labor-HHS-ED Appropriations Blocks
Implementation of State Authorization, Credit Hr.

20. Presidential Election -- Obama
• Massively Ambitious Higher Education
Agenda
• Obama Administration Has Brought Huge
Visibility for CCs
• Funding Has Generally Followed Rhetoric
• Emphasis Has Turned Somewhat To College
Costs, Student Debt

21. Presidential Election -- Romney
• Simplify Workforce and Student Aid Programs
• Emphasize For-Profits (Repeal Gainful
Employment)
• Return to Some Bank-Based Student Lending
• AACC Has Many Contacts With High Level
Advisors and Will Be Prepared for Transition

22. AACC Membership Actions Needed
• FY 2013 Labor, HHS, Education
Appropriations:
--Adopt Senate Language on Ability-to-Benefit
Students Enrolled in Career Pathways Programs.
--Reject Senate Language Limiting Pell Grant
budgets for 100% Online Students.
• Extend American Opportunity Tax Credit
--Benefits More Than 10 Million College Students.

23. AACC Washington Advocacy Seminar
• Better Than National Political Conventions!
• Sept. 30 to October 2 in Washington, DC
• More Than 20 High Level Presenters From All
Corners of Higher Education Policymaking –
Congress, Administration, Media, Think Tanks
• Learn How DC Works, Gain Access to Officials,
Network With Your Peers, Advocate
• See AACC Website for More Information

24. Contact Information
• David Baime
– 202-416-4500, dbaime@aacc.nche.edu
• Jim Hermes
– 202-416-4501, jhermes@aacc.nche.edu
• Laurie Quarles
– 202-416-4503, lquarles@aacc.nche.edu