Education advocates have Nov. 23 marked on their calendars. That’s the deadline for the so-called congressional “super committee” to submit a plan to reduce federal spending by at least $1.2 trillion over 10 years.
Any prospective cuts—and potential tax increases—are on the table, including reductions to programs that affect community colleges and their students. If the committee doesn’t agree on a plan or Congress rejects it, nearly all federally funded programs would be automatically cut beginning in 2013. For education, that would mean up to an estimated 9 percent across-the-board cut (about $4 billion) for fiscal year 2013.
Congressional committees have until Oct. 14 to make their recommendations to the 12-members super committee, which comprises leaders from both chambers. The committee will then craft and vote on its legislative package by Nov. 23, followed by a congressional vote by Dec. 23.
If the super committee process fails to reduce the deficit by at least $1.2 trillion, spending cuts would automatically begin the following year on Jan. 2, 2013, which would be in the middle of the academic year.
“It would be a very disruptive time to cut programs,” Laurie Quarles, a legislative associate at the American Association of Community Colleges (AACC), said during an AACC legislative webinar this week.
Under the mandatory cuts, the Pell Grants program would be exempt, in addition to programs such as Social Security and Medicaid. However, AACC officials noted that the committee could recommend making changes to the program to scale back its costs, such as changing eligibility rules.
Slides from AACC federal legislative update webinar
The Pell program avoided major cuts during the first budget-cutting effort this summer. The 2011 Budget Control Act—which created the super committee—provided $17 billion for the program by eliminating in-school interest subsidies on graduate student loans that will go a long way to preserving the $5,550 maximum award. That was crucial as the number of Pell recipients continues to increase.
Senate aims to preserve Pell
For FY 2012, prospects for Pell Grants look promising. Earlier this week, a Senate education appropriations panel approved a spending plan that would retain the Pell maximum, despite continued shortfalls in federal coffers to cover the growing program.
“Right now, level-funding is considered good news,” Quarles said.
The bill would also provide $100 million for a Workforce Innovation Fund. But overall it would trim funding for discretionary programs in theU.S. Departments of Education, Labor and Health and Human Services by $308 million, to $158 billion. The House has not yet introduced its appropriations bills.
Congress is not likely to approve the FY12 appropriations bills by the new fiscal year, which begins Oct. 1. To keep the government running, it is developing a “continuing resolution” (CR) that would temporarily set spending at current levels until Congress approves its spending bills. The first attempt to pass a CR failed in the House because of a dispute over federal disaster aid.
A $2B target
Community college advocates are keeping a close eye on the $2 billion setaside for the Trade Adjustment Assistance Community College and Career Training (TAACCCT) program, a federal Trade Adjustment Assistance (TAA) program to help train displaced workers. The funding was approved as part of the 2010 Health Care and Education Reconciliation Act.
About $500 million of the $2 billion will be dispersed the first year, with $500 million going out each subsequent year. Funding for the initial year appears safe—the U.S. Department of Labor may announce grant recipients as early as Monday—but community college supporters are concerned Congress may target funding for the coming years.
“It’s a very tempting target for budget-cutters,” said David Baime, senior vice president for government relations and research at AACC. “We know that we will have to defend the program.”
TAA is up for reauthorization, and some lawmakers have previously tried to nix the program, which would affect TAACCCT. However, a current Senate bill—which is part of a broader congressional debate regarding trade—would preserve TAA and continue authorization of TAACCCT.
Modernizing colleges
Congress is also preparing legislation to help create more jobs and to kick start the economy. Earlier this month, President Barack Obama unveiled his American Jobs Act, which would provide $5 billion to modernize community college facilities, as well as funding for job training. This week, the plan was introduced in the House as H.R. 2948, the Fix America’s Schools Today (FAST) Act.
Under the proposal, each state would receive at least $2.5 million to help renovate or repair two-year colleges. The funding would be distributed by the U.S. Department of Education to states based on relative community college enrollments.
States would have broad discretion on distributing the funds to colleges, according to Jim Hermes, director of government relations at AACC. States would have to factor in how “green” projects are, but it would not be restrictive, he said.
“It’s just something they need to take into account,” Hermes said.
The funds could not be used for new construction, though they could go toward current construction projects. Four-year institutions could also receive funding, however, those facilities would specifically have to serve students in associate-degree programs.