Here is CEF’s Wednesday update. Not surprisingly, mostly budget stuff. But in addition, some of you may be interested in the higher education meetings noted in item 3. Jeff Begin forwarded message: > From: Joel Packer <jpacker@cef.org> > Subject: Wednesday Update > Date: March 18, 2015 at 6:17:15 PM EDT > To: Joel Packer <jpacker@cef.org> > > > > 1. Budget March Madness: > a. House: The House Budget Committee started its markup on the FY 16 Budget resolution today, but has only dealt with the first five Democratic amendments (all rejected). There is expected to also be a Republican amendment to further increase defense funding in the Overseas Contingency Operations (OCO) fund above the $38 billion increase already included. The Committee intends to complete its markup tonight. > > Attached is the list of Democratic amendments and the text of the three education ones: > · Lower Student Debt by Refinancing Student Loans and Protecting Pell Grants and Student Loan Benefits > · Promote Early Childhood Development > · Preparing Students for 21st Century Jobs (career and technical education) > > See: Chairman Price Opening Statement: FY 2016 Budget Mark Up and Van Hollen Opening Statement: Mark Up of the Concurrent Resolution on the Budget for FY 2016 > > Rep. Mark Pocan (D-WI) asked the Republican staff a number of questions about the cuts in mandatory Function 500 spending, which total $161 billion over ten years versus CBO’s January baseline. The answers are that the Republican budget: > · Eliminates all mandatory Pell funding, assumes the maximum grant will be frozen at the current level and be fully funded on the discretionary side (note: but their budget slashes non-defense discretionary spending by $759 billion below the post-sequester cap level over ten years). Mandatory Pell funding is $78.6 billion over ten years, plus another $10.7 billion of mandatory spending already provided to support the discretionary grant. This totals $89.3 billion. > · Eliminates in-school subsidies for undergraduate Stafford loans. Savings of $34.8 billion, per CBO > · Eliminates public sector loan forgiveness (PSLF); they say this saves $10.5 billion. > · Eliminates expansion of IBR: they say this saves $16.3 billion > · Eliminates the Social Services Block Grant. Savings of $16.5 billion > > These cuts total $167 billion, so we’re not sure if they have a small increase in something (seems unlikely), have some different estimates than Democratic staff who provided this information (possible), or something else is going on. However, the student aid cuts add up to $150 billion! > > In terms of reconciliation, the House budget contains placeholder reconciliation instructions to committees, including Education and the Workforce, but the total cuts they are directed to come up with only total $4.7 billion – a far cry from the $4.2 trillion in mandatory cuts proposed in the budget. Chairman Price has said the reconciled levels are simply a floor and not a ceiling. The deadline for the committees to report legislation achieving their savings is by July 15. Reconciliation can only be triggered, however, once the Senate and House reach a joint conference agreement on their competing budgets. > > Based on this, we prepared this fact sheet on the Price budget. Also see this updated graph on the NDD cuts. Also, NDD United issued its press release on the House Republican Budget. It is available online here. > > The House is expected to take up the Budget on the floor on March 25 and 26. Only complete substitutes will be made in order. > > b. Senate: Chairman Enzi this afternoon released his budget plan: Enzi Introduces Balanced Budget That Supports Economic Growth and Expands Opportunity for Hardworking Families. For more details: CLICK HERE FOR THE BALANCED BUDGET RESOLUTION. > > The Enzi budget gets to balance in ten years compared to eight in the house. It would reduce the deficit by $4.4 trillion over 10 years, compared to $5.6 trillion in the House budget. It does not raise the OCO level for defense. It maintains the FY 16 sequester caps for both defense and NDD. As in the House, it cuts NDD every year starting in FY 17 but by a smaller amount than the House. Enzi cuts NDD by $237 billion, while the House does so by $759 billion. Enzi only has reconciliation instructions on the ACA, not for anything else. > > Enzi also contains a reserve fund, which Lindsey Graham (R-SC) and Kelly Ayotte (R-NH) had lobbied for, that would potentially allow for an increase in the spending caps on defense and nondefense discretionary spending. The fund could be used to prepare for a deal similar to the one reached in December 2013 between then-House Budget Committee Chairmen Paul Ryan (R-WI) and then-Senate Budget Committee Chairwoman Patty Murray (D-WA) that offered relief from the spending ceilings. Any such deal would have to be fully paid for (as was Ryan-Murray). > > See: Senate GOP budget cuts less than House, balances in decade and Mitch McConnell's Math Problem > > “The Senate GOP budget blueprint unveiled Wednesday presents the Majority Leader with a stiff vote-counting challenge. Just a day after the House released its budget plan, echoing Rep. Paul Ryan's long calls for entitlement reform and finding creative ways to fund the nation's defenses, the Senate took its turn and did neither. > > “The intraparty splits are deep enough that it's not clear whether House or Senate Republicans can pass budgets in their own chambers, much less agree on a single plan. But McConnell's puzzle is especially complicated, as he can only afford to lose three GOP votes and could face trouble from conservatives, defense hawks and senators up for reelection.” > > On student aid, Enzi also assumed elimination of all Pell mandatory and the in-school interest subsidy. It does not roll back IBR and PSLF as in the House, so its student aid cut is $124 billion. > > The Committee this afternoon held its walkthrough and will meet tomorrow on amendments. The Budget is expected on the Senate floor next week, likely on March 25-27. > > 2. IDEA Funding Sign-On Letter: Reps. Huffman (D-CA) and McKinley (R-WV) are circulating the attached "Dear Colleague" sign-on letter in support of increased IDEA funding. They are looking for help to get members to sign on by COB Monday, 3/23. > > 3. Higher Education Hearings: > a. Yesterday, the House Subcommittee on Higher Education and Workforce Training held this hearing: Strengthening America’s Higher Education System. From that link one can watch a webcast of the hearing and read the written statements of the witnesses. Also see: Opening Statements of Chairwoman Virginia Foxx (R-NC) and Rep. Alma S. Adams (D-NC) – she served as the ranking Dem for the hearing. > > b. This morning, the House Labor- HHS- Education Appropriations Subcommittee held an Oversight Hearing - Closing the Achievement Gap in Higher Education. From that link one can watch a webcast of the hearing and read the written statements of the witnesses. > > Also see: Opening Statement of Subcommittee Chairman Tom Cole > “There is a role for the Federal government to play in helping disadvantaged students to be successful in higher education. A more educated populace strengthens our workforce and our international competitiveness. Individuals who complete their course of study and obtain a degree are more likely to be employed and earn more than their counterparts who didn’t do so. The Department of Education’s loan and grant programs make higher education a possibility for millions of Americans. But programs such as TRIO and GEAR UP help students to make use of these financial resources. Through these programs, the federal government partners with states, school districts, institutions of higher education, nonprofits, and private industry to help disadvantaged students prepare for, enroll in, and complete a higher education. This preparation is essential to helping these students make use of financial aid.’ > > 4. The President and the Council of the Great City Schools: On Monday, the President met with several superintendents from the Council of the Great City Schools. See: Remarks by the President After Meeting with the Council of the Great City Schools. > > > Joel Packer > CEF Executive Director > JPacker@cef.org > 202-383-0083 > 202-255-0915 (cell) > www.cef.org > www.Twitter.com/edfunding > >