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Federal Policy Making…..

Make Some Noise!

Tami Sato, Southern CA College of OptometryVicki Shipley,

National Council of Higher Education Loan Programs (NCHELP)

WASFAA Conference April 2009

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Agenda

Process Overview and Key Players− House

− Senate

− Administration

Role of the Department of EducationYour Role and ResponsibilitiesMake Some Noise!

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Why Should You Care?

The majority of student aid is the product of and exists within some sort of political environment

− National politics− State politics− Institutional politics

Understanding the basic concepts and structures can help you anticipate change and possibly influence the process

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Legislation vs. Regulation

Legislation− Congress adopts with Presidential

signature or after overriding a veto

− Amends the U.S. Code -- the “statute” (e.g., Higher Education Act)

Public Laws (111-XX)

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Legislation vs. Regulation

Regulation− Promulgated by appropriate federal

agencyU.S. Department of Education for higher

education programsReviewed by Office of Management and

Budget (OMB)

− Interprets and adds detail to statute

Amends Code of Federal Regulations (C.F.R.)

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LEGISLATIVE PROCESS(In a nutshell….so to speak!)

Authorization Legislation: Introduced by a Representative or Senator to Amend or Create a Federal Statute− Legislation assigned to “Committee(s) of

Jurisdiction”− Chairman assigns to Subcommittee − Hearings held on major legislation− Higher Education Act to be “Reauthorized”

every six years Appropriations Legislation: Sets Annual

Funding Levels for Federal Programs (aka discretionary spending) via Budget Bills

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LEGISLATIVE PROCESS(It Takes Two To Tango!)

Other Chamber (House or Senate) Must Act -- Two Options:− Considers similar legislation at its own pace

Passes a bill that can be matched up with one passed by the other chamber

Differences must be reconciled before enactment is possible

− Receives legislation after other chamber actsMay approve identical bill or make amendments

“Back & forth” process, until identical bill is approved

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What Happens in the Conference Committee?

Differences between the House and Senate versions are reconciled

Must be re-voted on again in each chamber

Sent to the President for signaturePro: Differences are ironed out and

compromises are reachedCon: Not a public process, seen by

some as “undemocratic”

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LEGISLATIVE PROCESS(Final Action)

− Conference CommitteeAttempts to resolve differences between

House and Senate-passed billsResult is a “Conference Report” -- includes

explanatory language and recommendationsIdentical Conference Report must be

approved by House and Senate before it can be sent to the President

President signs or vetoes

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New Congress - 111th

Senate− Was 51 Democrats – 49 Republicans

− Now 56 Democrats - 41 RepublicansPlus 1 Independent and 1 Independent DemocratMinnesota race will be determined by courts

House− Was 236 Democrats -198 Republicans

One vacancy

− Now 254 Democrats – 178 RepublicansThree vacancies

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Education & Labor Committee

Higher Education, Lifelong Learning & Competitiveness Subcommittee

George Miller (D-CA)Chairman

Howard P. “Buck” McKeon (R-CA)Ranking Member

Rubén Hinojosa (D-TX)Chairman

Brett Guthrie (R-KY)Ranking Member

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Health, Education, Labor & Pensions Committee

Children & Families Subcommittee

Edward Kennedy (D-MA)Chairman

Michael Enzi (R-WY)Ranking Member

Chris Dodd (D-CT)Chairman

Lamar Alexander (R-TN)Ranking Member

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Budget “Basics”

Congress controls the purse! Budget committees formulate a budget

resolution Reconciliation instructions are optional Reconciliation protects budget measures

from parliamentary hurdles such as filibusters to ensure timely completion

Reconciliation instructions lead to the development of legislative changes to programs under the jurisdiction of the authorizing committees

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President’s 2010 Budget Proposal

Loan Proposals− Due to “turmoil” in the financial markets,

the President’s budget requests that Congress end the entitlements for financial institutions that lend to students by eliminating the FFEL Program by 7/1/10

− Makes campus-based aid more widely available through a modernization of the Perkins Loan Program

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Budget Proposals--Higher Education

Pell Grants− Pell Grant = $5,550 maximum in 2010-2011 − Indexes Pell Grants to the Consumer Price Index

plus 1%− Makes the Pell Grant program mandatory

College Completion & Access− Permanent $2500 American Opportunity Tax Credit− Create a new five-year, $2.5 billion Access and

Incentive Fund to support low-income students graduate from college

− Includes evaluation component to ensure best practices

− Triples number of graduate fellowships in science

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Obama Vows Budget Fight For His Priorities

“With the magnitude of the challenges we face right now, what we need in Washington are not more political tactics – we need more good ideas. We don’t need more point-scoring – we need more problem-solving.”

Obama challenged his critics to offer “constructive, alternative solutions.”

Source: CQ Today 3/17/09

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Budget Process –The Role of Congress

Budget Bills− House Bill

Includes reconciliation instructions to Education and Labor Committee to reduce budget by $1 B

− Senate BillDoes not include similar reconciliation instructions Includes amendment by Senator Lamar Alexander

“to maximize higher education access and affordability by ensuring that institutions of higher education and their students are able to continue to participate in a competitive student loan program, in order to maintain a comprehensive choice of student loan products and services.”

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Budget Process –Citizen Impact on Congress

Senator Alexander’s Amendment was due to him hearing from constituents− Letters to the Senator from school groups− Expressions of concern to other members

of Congress over the past few weeks1,000 phone calls1,200 faxes4,000 e-mails

− Consumer Bankers Association electronic petition6,000+ signers

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New Department of Education

Arne Duncan -- Secretary of Education− Martha Kanter – Nominee for Under

Secretary

− Carmel Martin -- Assistant Secretary for Planning, Evaluation and Policy Development

− Marshall Smith – Special Assistant

− Robert Shireman – Special Assistant

− Dan Madzelan – Acting Assistant Secretary

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Negotiated Rulemaking (Neg Reg)

Secretary of Education’s Responsibility Advise Congress

− Propose Legislation

− Provide Technical Assistance

− Assist with Constituent Issues

Regulates Where Needed Enforces Laws and Regulations Communicates with Interested Parties and

the Public

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Negotiated Rulemaking (Neg Reg)

Required by the HEA (Section 492A)All parts of Title IV – All the timeGoal: To develop Notices of Proposed

Rulemaking (NPRM) that reflects a final consensus of the negotiating committee

Consensus: There must be no dissent by any member of the committee (includes ED) to have reached consensus

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Neg Reg

Your Role During Neg Reg− Know who represents your segment or interests− Follow the issues (IFAP, NASFAA)

Your Role After Neg Reg− Review NPRM in Federal Register − Respond within comment period

Send Comments toDepartment of Education (see Federal Register)

w/copy to:− Federal Relations Committees− NASFAA

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Keep Track of What’s Happening In DC

Read, read, read…..Conferences and workshopsNetworkingListservsWebinarsWeb sites

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Be Heard! Be Heard!

YOU ARE THE EXPERT! Stay in touch (Email, phone, in person) with your

Congressional/State legislative members. Get to know their staff

Be sure they know who you are, what you do and the students you serve – be a trusted resource

Invite members of Congress/state legislature and/or their staff to tour your facilities

Respond to NPRM’s Volunteer to be on state and WASFAA and

NASFAA committees

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Put a Face on It!

Personalize sample/template lettersState how proposal(s) would affect

your studentsProvide student success storiesDevelop a fact sheet for your collegeUse stats and numbers

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Ten Tips for a Good Letter

Personalize your letter− Tell a story

What’s the impact on: a student your school your office your state

Use facts – politicians like numbers! Use personal stationery (or send an email) Thank them for their vote or position Request a follow up letter

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Ten Tips for a Good Letter

Address it correctlyThe Honorable (name)United States (Senate or House of Representatives) Washington, DC 20510

Send it to the appropriate officeKeep your comments short and to the

point Include contact information Include an “ask”

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How do YOU get involved?

Know your stuff− Association advisories

− Lender and guarantor updates

− Other sources?

Make friends before you need them− Congressional staffers

− Members of Congress

Communicate, communicate, communicate− Write a letter, make a call, send an email, smoke

signals, tin cups with a string

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Thank You!

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QUESTIONS