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Category: Higher Education

Startup America Partnership

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As part of the Obama Administration’s innovation agenda, the White House today announced the launch of the Startup America Partnership, a “public/private effort to promote entrepreneurship with new initiatives to encourage private sector investment in job-creating startups and small firms.”  The effort “brings together an alliance of the country’s most innovative entrepreneurs, corporations, universities, foundations, and other leaders, working in concert with a wide range of federal agencies, to dramatically increase the prevalence and success of America’s entrepreneurs.” 

The goals of the initiative are expanded commercialization of the results of federally funded research, and a greater number of “high-impact entrepreneurship education programs” at high schools, community colleges, and universities.

White House Website for Startup America

Dept. of Ed. Set to Release 2011-12 Pell Schedule

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The U.S. Department of Education has determined that it can establish the Pell Grant maximum for the 2011-12 academic year at $5,550 based on the Dec. 22, 2010, Continuing Resolution (CR) that expires on March 4. The agency plans to issue the 2011-12 Pell Grant Payment and Disbursement Schedules using the $5,550 maximum Pell (same level as current year) by February 1. If Congress extends the current CR without altering spending levels, the maximum Pell award would be $5,550 and the Pell Schedules issued before Feb. 1 would stand. If Congress alters Pell spending after the current CR expires, the maximum Pell award could change and Pell Schedules could need to be revised.

Pell Grant Cuts on the Table Says Key Senator

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Senator Lamar Alexander (R-TN) (former Secretary of Education under President George H.W. Bush) is quoted in today’s Congressional Quarterly as stating that cuts to the Pell Grant program, along with the rest of the domestic discretionary budget, are on the table as Congress now attempts to reduce spending through the FY11 and FY12 appropriations processes.

In December 2010, the former Congress passed a temporary spending measure intended to keep the government running while lawmakers try to agree on a permanent budget for the current fiscal year. The spending measure included $5.7 billion to plug a deficit in the Pell program, created by expanded student eligibility. The funding seemingly stabilized Pell for the coming 2011-12 academic year. However, Congress can undo much of that as they finalize fiscal year 2011 appropriations. Support for Pell will be at the forefront of UW advocacy efforts in the coming weeks.

Congress Passes Post-9/11 Veterans Educational Assistance Improvements Act

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On Friday Congress passed an altered version of the existing Post 9/11 GI Bill, which is designed to address issues that arose with the previous legislation. The updated bill will:

 –  provide full tuition for those attending a public school in their home state and up to $17,500 in tuition payments for those attending private schools (this number will rise annually, based on the avg. cost of tuition).

– allow funds to be used for vocational schools, distance education programs, and on-the-job training

– cover 90,000 National Guardsmen and Reserves who were previously ineligible to apply for the benefit.

– Ensure that students who are taking classes online will be awarded a portion of the housing stipend, which can total more than $2000/month

–  Allow a 10 year restriction for taking advantage of the benefit may be waived for spouses and dependents if they had to delay attending college in order to take care of a wounded service member

These changes will take affect in August and the VA is working to get their payment process streamlined by then to avoid any delay of these tuition payments — a problem that arose with the passage of the original legislation.

Senate Moves Tax Package Forward (Updated 12/17)

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**2nd Update 12/17** The packaged has been fully approved by Congress and is heading to the President’s desk, where it will be signed this afternoon.

** Update ** Today, by a vote of 81-19, the Senate voted to pass the much discussed tax-extenders package. The bill now goes to the House for a vote. The $893 billion package would provide an extension of various Bush-era tax cuts that were set to expire at the end of December. The package includes several items of note to our community, including:

Tax incentives that would be extended for two years through 2012

  • Section 127 Employer-provided education benefits
  • Coverdell education savings accounts
  • Student loan interest deductions
  • American Opportunity Tax Credit (AOTC)

Tax incentives that would be extended for two years through 2011 (they expired in 2009)

  • Deductions for qualified educational expenses
  • Research and development credit
  • Ability to “roll over” assets in Individual Retirement Accounts (IRA) to charitable organizations, including institutions of higher education

Additional items of note for employees

  • Sales tax deduction in states with no income tax -retroactively for 2010 plus 2 additional years
  • Social security payroll tax reduction from 6.2% to 4.2% of income for one year

Although the tax package will leave the Senate with rare bipartisan support, it’s path in the House is less clear. House Democrats have promised to amend the legislation, primarily the estate tax portion, which could send it back to the Senate. Senate Republicans have already signaled that they are unlikely to support House modifications. Nonetheless, it is expected that some form of a final deal will be struck by the end of the week -so that tax rates do not increase at the beginning of the year.