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Key Federal Issues for Independent College Presidents

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.

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Key Federal Issues for Independent College Presidents

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

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

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

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

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

  6. Budget Cutting

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

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

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

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

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

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

  13. 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

  14. 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) • State-based benchmarks, reform model • Building Blocks to 2020

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

  16. Key Federal Issues for Independent College Presidents

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