Legislative Update - February 2003
from Karen Fooks, SASFAA Legislative Relations Committee Chair
Appropriations
FY 03 - Omnibus Appropriations Act
A mere four months (!) after the start of the fiscal year, we may finally have a FY 03 budget for education. Last week, both the House and Senate passed a consolidated appropriations bill that funds most areas of the federal government. As of this writing, the President had not yet signed the bill but was expected to do so shortly. The Labor, HHS and Education portion of the bill appropriates $130.9 billion, approximately $.3.3 billion more than last year. It also provides $53.4 billion for Department of Ed discretionary programs, about 7% more than last year but less than half the average annual increase from 1997-2002. The final bill provides for a $4,050 Pell maximum award, increases SEOG by $40 million to $765 million and increases TRIO and GEAR-UP. The Pell appropriation includes $576 million more than the President requested to help address the estimated $2 billion Pell Grant shortfall from prior years' appropriations. despite the increases, some programs will still actually see a decrease in appropriations because of a provision to make .65% across the board cuts in order to stay within a level the President could support. This means that FWS appropriations will actually fall from $1.011 billion to $1.004 billion. Budget details are attached.
FY 04 - Budget
On February 3, the President released his FY 2004 budget. It includes a $1.9 billion increase for Pell Grants which would eliminate the Pell Grant shortfall but would only fund a $4,000 maximum Pell Grant award. The spending plan would also level-fund SEOG and FWS and would not provide any new federal funds for the Perkins Loan program and eliminate LEAP.
Reauthorization
A number of higher education
associations, including SASFAA, have released their reauthorization proposals.
Most proposals to date are fairly general in nature and have left "place markers" for
more contentious issues such as inducements and loan consolidation. By far
the most comprehensive and detailed recommendations have been from NASFAA.
The SASFAA recommendations closely follow the NASFAA proposals except for a
few areas of difference or certain recommendations that were technical in nature
or specific to NASFAA. SASFAA sent its recommendations to the House Education
Committee on December 31.
The U.S. Department of Education is also asking for comments on reauthorization by February 28. ED has taken a different approach, however. They are requesting comments designed to address specific questions including:
- How can ED improve access for all students, especially those with disabilities?
- How can the federal government encourage greater persistence and completion among higher education students?
- How can existing HEA programs be changed and made to work more efficiently and effectively in today's environment?
- How can the federal government eliminate any unnecessary burdens on students, institutions or the government and still maintain taxpayer accountability?
- How can ED best prioritize the use of federal funds?
- How can the federal funding already provided best help improve educational quality, expand access and ensure affordability?
- Are there innovative ways ED can use tax credits and deducations to improve access and choice?
- How can program effectiveness be measured?
Univerisity of Michigan Supreme Court Case
On January 16, the U.S. Justice Department filed a friend of the court brief for the plaintiffs against the University of Michigan admissions policies, arguing that they were thinly veiled quota systems and that diversity was no a compelling enough government interest to allow the UM affirmative action admissions policies to stand.
The move was roundly criticized by the higher education community. Most of the Washington higher education associations as well as a number of individual colleges and universities and a number of Democratic members of Congress filed/will file briefs in support of UM position.
The Supreme Count is scheduled to hear oral arguments on April 1.
Legislation
H.R. 12 - "Fed Up" Higher Education Technical Amendments
Description: Makes clarifying and technical changes. Reinstates waiver of 30-day delay/multiple disbursement in a single term loan provisions.
Status: Introduced January 7 by Rep McKeon (R-CA). Failed to pass the House on July 16. Currently on motion to suspend the rules and pass the bill as amended.
S. 174 - Tuition Assistance for Families
Description: Expands Lifetime Learning Tax Credits from $10,000 to $12,000, increase income limits for Hope and Lifetime Learning from $40,000-$55,000. Incrreases Pell Grant awards from $4,000-$4,500.
Status: Introduced January 15 by Sen. Biden (D-DE). Referred to finance committee.
H.R. 129 - Higher Education Affordability and Fairness Act
Description: Amends the tax code to provide a deduction for higher education expenses. Creates an annual study by the Comptroller General to examine whether higher education tax incentives affect tuition rates.
Status: Introduced January 7 by Rep Holt (D-NJ). Referred to finance committee.
S8 - Educational Excellence for All Learners Act
Description: Raises the maximum Pell Grant to $4,500, makes Hope and Lifetime Learning tax credits refundable. Phases out the loan origination fees.
Status: Introduced January 7 by Sen Daschle (D-SD). Referred to education committee.
S. 55 - Veteran's Higher Education Opportunities Act
Description: Provides veteran's assistance for the average monthly costs of tuition and expenses for commuter students at public institutions that award baccalaureate degrees.
Status: Introduced January 7 by Sen. Johnson (D-SD)
H.R. 227 - Student Loan Disbursement
Description: Reinstates waiver of 30-day delay/multiple disbursements in a single term.
Status: Introduced January 7 by Rep. Wu (D-OR)
Sources for articles: AASCU, NASFAA, Student Aid Alliance, Student Aid News
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