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News and updates

House and Senate Likely to Bypass Formal Budget Resolution

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Leaders in the House and Senate have apparently decided to forgo the development and passage of a typical 5-year budget resolution and will instead set a one-year spending plan. The plan will provide caps for discretionary spending in the 12 appropriations bills that fund federal government operations. According to House Majority Leader Steny Hoyer (D-MD), the proposed spending caps will require reductions below the budget figures recommended by President Obama in February.  Further, the House plan calls for the 12 appropriations sub-committees to find efficiencies through the elimination of unnecessary programs within their jurisdiction.

In the House, it is expected that the spending caps will move alongside an FY10 supplemental spending bill prior to the July 4th congressional recess. The Senate timeline for approving the spending caps is less clear at this time, though budget chairman Kent Conrad (D-ND) has expressed tentative support for the concept.

The long expected decision will likely clear the way for consideration of the individual FY11 spending bills, as it gives the various sub-committees top-line allocations to work with. Although some appropriations bills may advance in July, it remains highly likely that most will be rolled into an omnibus appropriations package after the November election.

Dept. of Ed. Announces Availability of Competitive FIPSE Funds

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The U.S. Department of Education’s Fund for the Improvement of Postsecondary Education Comprehensive Program (FIPSE) will accept competitive FY10 proposals. FIPSE supports innovative reforms and improvements in postsecondary education that respond to problems of national significance. Approximately $27 million will be available for 37 awards of up to $750,000 per year; projects can last up to three years.

Over the past several years, FIPSE funds have been largely distributed through congressionally directed appropriations. While the majority of new FIPSE funds will continue to be distributed in this manner, the competitive program represents a signficant opportunity for colleges and universities. The following priority areas are identified in the full solicitation:

Invitational Priority 1
Under this priority, we are particularly interested in centers of
excellence for teacher preparation as described in section 242 of the
Higher Education Act of 1965, as amended (HEA).
Invitational Priority 2
Under this priority, we are particularly interested in university
sustainability initiatives as described in section 881 of HEA.
Invitational Priority 3
Under this priority, we are particularly interested in rural
development initiatives for rural-serving colleges and universities as
described in section 861 of HEA.
Invitational Priority 4
Under this priority, we are particularly interested in initiatives
to assist highly qualified minorities and women to acquire doctoral
degrees in fields where they are underrepresented as described in
section 807 of HEA.
Invitational Priority 5
Under this priority, we are particularly interested in modeling and
simulation programs as described in section 891 of HEA.
Invitational Priority 6
Under this priority, we are particularly interested in higher
education consortia to design and offer interdisciplinary programs that
focus on poverty and human capability as described in section
741(a)(11) of HEA.
Invitational Priority 7
Under this priority, we are particularly interested in innovative
postsecondary models to improve college matriculation and graduation
rates, including activities to facilitate transfer of credits between
institutions of higher education (IHEs), alignment of curricula on a
State or multi-State level between high schools and colleges and
between two-year and four-year postsecondary programs, dual enrollment,
articulation agreements, partnerships between high schools and
community colleges, and partnerships between K-12 organizations and
colleges for college access and retention programs.
Invitational Priority 8
Under this priority, we are particularly interested in activities
to develop or enhance educational partnerships and cross-cultural
cooperation between postsecondary educational institutions in the
United States and similar institutions in Haiti.

Little Signs of Life in FY11 Appropriations Process

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The consideration of FY11 spending bills has been delayed for weeks, largely due to the inability of the House and Senate to produce a budget resolution. Each year, one of the first steps Congress takes in the appropriations process is the development of a budget resolution. A budget resolution sets the spending limits for the 12 appropriations bills that Congress considers. The resolution is not a mandatory part of the process, but is one that many deem fiscally responsible. Moving forward in the appropriations process without a budget resolution is akin to a family spending money without ever setting a budget for itself.

Despite dozens of hearings on President Obama’s FY11 budget request and some committee staff action in developing the bills, the appropriations process has largely been placed on hold. The stalemate over a budget resolution combined with the necessary consideration of a FY10 supplemental spending bill and a package of tax break extensions has resulted in little recent action on the FY11 appropriations bills.

Early this week, leaders on the Hill gave some indication that they might hold subcommittee markups on a few appropriations bills prior to the July 4th congressional recess. Nonetheless, it remains highly improbable that Congress will send appropriations bills to the President until after the November mid-term elections. On October 1st, Congress will likely need to pass a continuing resolution (CR) to keep the government operating until it can pass the FY11 spending bills. A CR would continue government functions at existing (FY10) levels. However, it should be noted that congressionally directed appropriations that are a part of the FY11 process will not be funded until new spending measures are signed into law.

Energy & Climate Action Remains Uncertain

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The Gulf oil spill continues to complicate negotiations on a legislative pathway for energy and climate legislation.  While many agree, including the President, that Congress must take action on an energy bill this year, several moderate senators remain unconvinced that a climate bill can garner the necessary votes in the Senate.  The Senate continues to discuss potential measure that would include provisions such as renewable energy incentives and standards, energy efficiency improvements, revisions to offshore oil and gas policies, and may also include climate change language that regulates greenhouse gas emissions.  

The House passed a combined energy and climate measure (HR 2454) last year.  But that bill and other proposals have stalled in the Senate.  President Obama cited the House measure in his televised speech from the Oval Office on Tuesday evening but he did not specifically mention action to combat greenhouse gas emissions.  Today, the Senate Democratic Caucus plans to discuss prospects for action this year on energy and climate bills.

Multiple proposals, or portions of those proposals, are on the table for discussion.  Senate Energy and Natural Resources Chairman Jeff Bingaman (D-NM) successfully moved an energy policy bill (S 1462) out of his committee last year that includes a renewable electricity generation standard, offshore oil production allowances, and other standard energy policy revisions.  Senators John Kerry (D-MA) and Joseph Lieberman (I-CT) are pushing for their climate change proposal, which has not yet been introduced.   The Kerry-Lieberman measure adds nuclear power and state offshore oil and gas revenue-sharing incentives in an attempt to garner Republican support.  Senators Maria Cantwell (D-WA) and Susan Collins (R-ME) introduced their version of a climate proposal (S 2877) last year, which proposes a “cap and dividend” solution as opposed to the more common “cap and trade” option.  Finally, Senator Richard Lugar (R-IN) recently introduced yet another energy and climate research bill (S 3464).  Except for the Lugar proposal, all the measures were crafted and unveiled prior to the Gulf of Mexico oil spill.

The Office of Federal Relations has reviewed all the current proposals and will monitor the process closely if the Senate does decide to move forward on energy and/or climate legislation this year.

Education Funding Proposal Still Alive

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The House of Representatives continues to explore options for providing funds to states to save education jobs and to close the shortfall in the Pell Grant program, as part of a fiscal year 2010 supplemental spending bill.

The $84 billion bill crafted by House Appropriations Chairman David Obey (D-WI) includes $23 billion to help states avoid laying off K-12 public school teachers and $5.6 billion to cover the projected shortfall in the Pell Grant program. Public higher education jobs are not provided for in Congressman Obey’s draft. Additionally, the proposal would establish a minimum level of funding for K-12 education without providing the same protection to public higher education. This provision could leave public colleges and universities vulnerable to cuts as states strive to meet the K-12 maintenance of effort (MOE) requirement. UW Federal Relations is working with the Washington delegation and the broader higher education community to seek modifications to the higher education exclusion and K-12 MOE recruitment.

Many fiscally conservative Members of Congress have expressed concern with providing funding for education jobs in a supplemental spending bill, as it would add to the deficit. In response, House Democrats are now discussing various options for offsetting the education provisions by eliminating a portion of unobligated Recovery Act funding.

The supplemental spending bill approved by the Senate at the end of May did not include the education jobs provision or funding to cover the Pell Grant shortfall.

Over the weekend, President Obama sent a letter to the Hill advocating for roughly $50 billion of spending on domestic programs — including the education provisions outlined above — in the supplemental appropriations bills. The supplemental spending bill is largely intended to fund military operations in Iraq and Afghanistan and emergency response activities (e.g. Gulf oil spill, flooding in the south).

The coming week should provide some indication on the prospects for education funding in the House supplemental bill. However, we may be several weeks off from a final outcome, as the House and Senate will still need to come to agreement on a final version of the legislation.

Letter from President Obama to Congressional Leadership