Senate Passes Head Start Reauthorization

On Tuesday, June 19, the Senate passed an amended version of H.R. 1429, the Head Start for School Readiness Act. The amended measure resembles S. 556, the Head Start bill that passed the Senate Health, Education, Labor and Pensions (HELP) Committee earlier this year by unanimous consent. The bill now heads to conference with the House to reconcile differences. Head Start was last authorized in 1998 and has been in the reauthorization pipeline since 2003. Unable to complete the reauthorization, Congress has continually extended the law since 2003.

On Tuesday, June 19, the Senate passed an amended version of H.R. 1429, the Head Start for School Readiness Act. The amended measure resembles S. 556, the Head Start bill that passed the Senate Health, Education, Labor and Pensions (HELP) Committee earlier this year by unanimous consent. The bill now heads to conference with the House to reconcile differences. Head Start was last authorized in 1998 and has been in the reauthorization pipeline since 2003. Unable to complete the reauthorization, Congress has continually extended the law since 2003.

The Senate bill increases funding to expand the Head Start program, authorizing $7.3 billion in fiscal year 2008 (FY08), $400 million more than was provided this year. The bill increases funding to $7.5 billion in FY09 and $7.9 billion in FY2010. Unlike the House bill, the Senate measure would provide $100 million for a new state incentive grant program, a priority of HELP committee chairman Sen. Edward Kennedy (D-MA), which will implement state early care and education plans. The Senate bill also would more broadly expand Head Start eligibility by increasing the minimum income level required for participation to 130% above the Federal Poverty Line.

The Senate bill also:
• Doubles the Early Head Start set-aside (currently 10%; would phase up to 20% over 5 years);
• Ensures funds for Indian Head Start (4% minimum set-aside) and Migrant and Seasonal Head Start (5% minimum set-aside);
• Supports Head Start programs in aligning standards and services with state early learning standards;
• Suspends and terminates the flawed Head Start National Reporting System;
• Supports the National Academy of Sciences review of child outcomes and assessments, based on gold-standard research;
• Dedicates 1% of total Head Start funds to Head Start grantees, for local training and technical assistance efforts;
• Establishes new goals (no requirements or penalties) for the Head Start teaching workforce:
o All Head Start teachers nationwide must have an Associate’s degree in 5 years;
o Half of all teachers in each state must have a Bachelor’s degree in 6 years;
o All Head Start curriculum specialists must have at least a Bachelor’s degree in 5 years; and
o All Head Start assistant teachers must have at least a child development associate credential in 5 years.
• Creates a new State Advisory Council on Early Care and Education in every state; and
• Recognizes and awards bonuses to “Centers of Excellence” that provide exemplary services to Head Start children and families. (New authorization of $90 million).
No date is set for the beginning of the conference, but the Senate has designated all 21 HELP Committee members as conferees. No House conferees have been designated yet.
Resources:
Kathleen Hunter, “Senate Passes Head Start Reauthorization; Moves to Go to Conference With House,” CQ Today, June 19, 2007.
Senator Kennedy Press Release: http://help.senate.gov/Maj_press/2007_06_20_d.pdf
Author: SAS

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HELP Committee Passes HEA and Reconciliation Bills

On Wednesday, June 20, the Senate Health, Education, Labor and Pensions (HELP) Committee unanimously passed S. 1642, reauthorizing the Higher Education Act (HEA). As expected, following the various reports on scandals in the student lending industry, the HEA reauthorization focuses on student lending and college affordability by setting stricter regulations on relationships between schools and lenders, as well as increasing the maximum Pell grant awards and expanding grant assistance opportunities. The HELP Committee also passed a reconciliation bill, as directed by the joint budget resolution for fiscal year 2008 (FY08), by a vote of 17-3.

On Wednesday, June 20, the Senate Health, Education, Labor and Pensions (HELP) Committee unanimously passed S. 1642, reauthorizing the Higher Education Act (HEA). As expected, following the various reports on scandals in the student lending industry, the HEA reauthorization focuses on student lending and college affordability by setting stricter regulations on relationships between schools and lenders, as well as increasing the maximum Pell grant awards and expanding grant assistance opportunities. The HELP Committee also passed a reconciliation bill, as directed by the joint budget resolution for fiscal year 2008 (FY08), by a vote of 17-3.
The new HEA increases the amount of information that schools and lenders must provide students about their loans. The bill will also ban lenders from providing school financial aid officials with perks such as student aid assistance in order to be on schools’ “preferred lender” lists. The measure would shorten the form that students must complete for financial aid and would direct the U.S. Department of Education (ED) to track tuition increases and assess the drivers behind increasing college costs, putting schools on notice that the government is concerned about rapid tuition increases.
The 67-page reconciliation bill cuts federal subsidies to lending companies by as much as $19 billion. The bill will channel most of those savings to student aid and ease repayment rules for borrowers. It also creates a new entitlement funding stream for Pell grants that would not be subject to the annual appropriations process. It is intended to boost the maximum Pell grant by more than $1,000, to $5,400 by 2011. The bill would establish new "Promise Grants" for the neediest Pell recipients, cap student loan repayments at 15% of discretionary income and offer loan forgiveness for some public-service employees.
The three Senators to vote against the measure, Judd Gregg (R-NH), Richard Burr (R-NC), and Wayne Allard (R-CO), criticized the committee for using the budget reconciliation process to pass provisions that should have been placed in the HEA reauthorization. Reconciliation bills are not subject to filibuster in the Senate, thereby acting as a better vehicle for passing controversial pieces of legislation that are not likely to get minority support. However, the three dissenters on the committee seemed more opposed to the process through which the bill is being considered, and less concerned with the provisions within the bill itself, though they claim the bill will cost more in Pell increases then it will save in subsidy cuts.
The subsidy cuts largely track those proposed by President Bush in his 2008 budget and included in a House bill, H.R. 2669, approved by the Education and Labor Committee on June 13. The House bill, however, also includes provisions that would halve the interest rate on subsidized student loans over five years and boost the maximum Pell grant by $500. Once the two bills pass through their respective chambers, Congressional leaders expect a quick conference. As of this point, the House Education and Labor Committee has not scheduled its own HEA markup.
Resources:
Alex Wayne, “Committee Approves Pair of Bills Designed to Overhaul Financial Aid System,” CQ Today, June 20, 2007.
Stephen Langel, “Higher Education Act, Controversial Reconciliation Provision Head to Senate Floor,” Congress Now, June 20, 2007.
Doug Lederman, “Students’ Gain, Lender’s’ Pain,” Inside Higher Ed, June 21, 2007.
Amit R. Paley, “Student Loan Overhaul Advances,” Washington Post, June 21,2007.
Author: SAS

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Senate Committee Passes FY08 Appropriations Bill

Last Thursday, the Senate Appropriations Committee approved the fiscal year 2008 (FY08) Labor-HHS-Education Appropriations bill. The Senate bill allocates more than $152 billion for the Departments of Labor, Health and Human Services, and Education, $9 billion more than the President requested, and about $1 billion less than the House Subcommittee allocated two weeks ago (including advanced appropriations). This increase makes up a large chunk of the $20 billion difference between the spending caps set in the joint budget resolution, and the President’s total request for FY08. The U.S. Department of Education (ED) received over $60 billion, about $1 billion less than the House bill.

Last Thursday, the Senate Appropriations Committee approved the fiscal year 2008 (FY08) Labor-HHS-Education Appropriations bill. The Senate bill allocates more than $152 billion for the Departments of Labor, Health and Human Services, and Education, $9 billion more than the President requested, and about $1 billion less than the House Subcommittee allocated two weeks ago (including advanced appropriations). This increase makes up a large chunk of the $20 billion difference between the spending caps set in the joint budget resolution, and the President’s total request for FY08. The U.S. Department of Education (ED) received over $60 billion, about $1 billion less than the House bill.
Although most programs, such as Title I State Grants and IDEA Part B State Grants, received increases over the FY07 levels, programs such as Career and Technical Education State Grants, Teacher Quality State Grants, and Education Technology State Grants received level funding. The only two programs to receive funding cuts are Reading First ($229 million less than FY07) and Safe and Drug Free Schools State Grants ($46.5 million less than FY07). Although both chambers are proposing these cuts, the House bill cuts Reading First by $629 million. Both chambers are reacting to the accusations of mismanagement of the Reading First program that has plagued ED this year.
The House Labor-HHS-Education Appropriations Subcommittee marked up its bill two weeks ago, but disagreements over earmarks forced House appropriators to move their timetable back, pushing the bill back until after the July 4th Recess. House Majority Leader Steny Hoyer (D-MD) reluctantly backed off from his promise to have all 12 FY08 spending bills passed before the recess, in light of the earmark challenges. All spending bills in the House will have the special spending projects adopted into the bill before they hit the House floor, forcing the Appropriations Committee to extend the deadlines for each bill.
There is currently no finalized schedule for when the Senate will bring its spending bills to the floor, but the delays in the House will likely push the final votes on conference reports back until after the month-long August recess. That will leave Congress only one month to complete all spending bills before October 1, the beginning of FY08, as many members promised during the 2006 midterm elections. An additional challenge is the White House’s threat to veto all appropriations bills that far exceed the President’s request. The total spending cap set in the joint budget resolution is about $20 billion more than the President requested.
The White House has signaled that the President will allow for some increases, but that his tolerance is limited. The consensus on Capitol Hill is that the President may sign off on only $7 billion or $8 billion total over his entire request. If that level is reached before the Labor-HHS-Education bill makes it to the President’s desk, its chances of success are unlikely. House Republicans recently released a letter showing they have 147 Congressmen signed on to sustain any Presidential veto (only 145 votes are required). Appropriators likely have until September to reach a compromise on the spending levels, or convince a sufficient number of those 147 Republicans to back off of their stated opposition. Otherwise, the only other option will be to pass an omnibus package, likely after the October 1 deadline passes, that funds too many important programs for the President to risk the political fallout of a veto.
A chart of the Senate funding levels is attached to this email.
Resources:
Appropriations Committee Press Release: http://appropriations.senate.gov/
Author: SAS

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