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Legislative Update: Update on Sequestration; Republican Flexibility Plan

March 2nd, 2013

Update on Sequestration

With the passage of the March 1 deadline, sequestration has been triggered. In a report from the Office of Management and Budget, it is calculated that over the course of the fiscal year “ the sequestration requires a 7.8 percent reduction in non-exempt defense discretionary funding and a 5.0 percent reduction in non-exempt nondefense discretionary funding. The sequestration also requires reductions of 2.0 percent to Medicare, 5.1 percent to other non-exempt nondefense mandatory programs, and 7.9 percent to non-exempt defense mandatory programs.”

Education and workforce programs would fall into the non-exempt nondefense discretionary category and would be subject to the 5% cut. For the U.S. Department of Education this translates into a cut of $2.278 billion.

What does this mean for Perkins?   The entire Perkins allocation would be reduced by 5%, then the federal-to-state formula would be run to determine state allocations. Therefore, the impact of sequestration on your state Perkins allocation is yet to be determined.  While a 5% estimate is something you can work with as an estimate, the annual formula shifts due to population and poverty,  as well as the small state minimum, will impact the allocations among the states.  NASDCTEc  has been in touch with the Office of Vocational & Adult Education (OVAE) regarding when state estimates will be available.  As for Friday afternoon, they do not have a firm answer. The U.S. Department of Education has not yet determined if the reduction will apply to the July 1 allotment and the October 1 allocation or if the reduction will be taken out of one of the two allotments made to the states. NASDCTEc has encouraged OVAE to provide you with the state allocations as soon as possible.

The White House created fact sheets on the general effects of sequestration (http://www.whitehouse.gov/blog/2013/02/22/what-sequester#states).

While these are useful, they do not contain specific information in regard to Perkins funding.  As soon as more details are available, including a conclusive impact on Perkins and each state’s allocation, we will make it available.

If you have any questions, please feel free to contact David Beckett, NASDCTEc’s Advocacy Manager at 301-588-9630 or dbeckett@careertech.org.

Republican Flexibility Plan

In recent weeks, many lawmakers, especially on the Republican side have touted the idea of allowing the Federal Government flexibility when it comes to reducing the budget, as an alternative to sequestration. While sequestration sees uniform spending reductions across every non-discretionary program, flexibility would allow each Federal department the ability to cut some programs more than others.

The White House has made it clear they are against this proposal, because it would still see a vast reduction in spending levels in programs like CTE that invest in the future prosperity of the nation. Similarly, the Senate Democrats are opposed to the proposal but yesterday saw their move to replace the sequester with an increase in taxes for households earning over $5m a year fail when they couldn’t garner enough votes. The stalemate means the current Continuing Resolution (CR), which funds the government until March 27, remains in place for now. However, Speaker Boehner (R-OH) today said he would table a new CR in the House next week, which if passed would avert a government shutdown. While details on how this will affect CTE  remain unclear, updates will be posted on the blog as soon as they are available.

David Beckett, Advocacy Manager

State of the State Addresses: Governors Address Skills Gap through CTE

March 1st, 2013

As many governors struggle to minimize the impact of the skills gap in their states, Career Technical Education (CTE) has repeatedly been touted as part of the solution to this disconnect. Governors in each state have recently delivered state of the state addresses to outline their priorities for 2013, and CTE often appears as a strategy within these plans.

Texas – Governor Rick Perry

“Texas employers need additional, qualified workers. Of course, not all of these jobs require a college degree. Many require a technical certification, and those jobs are among those most in demand in our state.”

Governor Rick Perry is focused on bridging the gap between education and industry. He recommends giving high school students more flexibility in their course selection without sacrificing rigor. He also promotes an existing model that brings together industry and technical/community colleges to help students earn technical certifications at an affordable cost. This would allow individuals to earn certification in high-demand industries using competency-based learning, allowing students to earn credits for skills they have already mastered.

Watch Governor Perry’s full address.

New York – Governor Andrew Cuomo

“A generic job training program just doesn’t cut it anymore. We need a job linkage program.”

Governor Cuomo recognizes the need to better align education and training to in-demand jobs in New York. “We must change and reimagine the way [the State University of New York] and [the City University of New York] community college systems work,” he said.

There are 210,000 unfilled jobs in New York, Governor Cuomo said, because companies cannot find workers with the right skills. CTE programs help fill the gaps between the skills that students are learning versus the demands of employers. Partnerships between secondary education, postsecondary education, and business and industry will be critical to making the changes that Governor Cuomo hopes to see.

Watch Governor Cuomo’s full address.

Vermont – Governor Peter Shumlin

“Our current funding system does not encourage [CTE] centers to match the needs of regional employers. These [CTE] Innovation Zones will focus on areas of education and professional opportunity that fit the needs of their region.”

Governor Peter Shumlin’s address strongly supports tenets of CTE – from opportunities for dual enrollment to early college initiatives to personal learning plans for every student. Of particular note is Governor Shumlin’s proposal to increase the use of Vermont’s 17 CTE centers. Shumlin suggests using these CTE centers as the foundation for “Vermont Innovation Zones” that would better connect CTE with labor market needs across the state.

Read Governor Peter Shumlin’s full address.

Kara Herbertson, Research and Policy Manager

Legislative Update: State of the Union; Plan For A Strong Middle Class & Strong America

February 18th, 2013
State of the Union

Last week, President Obama delivered his State of the Union speech which included many promising aspects for the Career Technical Education (CTE) community and can be viewed here. The President spoke of the importance of ensuring that a high school diploma puts America’s young people on a path to a good job and spoke glowingly of the Pathways in Technology Early College High School (P-TECH) in New York which does just that. P-TECH works in partnership with New York Public Schools, the City University of New York and IBM to ensure their students graduate with both a high school diploma and an associates degree in computing or engineering. The President also spoke of equipping high school graduates for the demands of a high-tech economy by rewarding schools that develop new partnerships with colleges and employers and create classes that focus on the skills employers are looking for to fill jobs now and in the future.

And in a night which saw bipartisan support for the benefits of CTE, Senator Marco Rubio (R-FL) also focused on issues important to NASDCTEc. In his role speaking for the Republicans to respond to President Obama, Senator Rubio spoke of incentivizing school districts to offer more vocational and career training and building an education system that gives people the skills today’s jobs entail and the knowledge that tomorrow’s world will require.

With each party focusing on the importance of CTE and the role it will play in our future, there are positive signs that this renewed focus will result in a welcome prioritization for CTE issues, which can only be a good thing with reauthorization of the Carl D. Perkins Career Technical Education Act not far away.  We are hopeful that the priorities laid out in the State of the Union will be reflected in the President’s budget proposal, due out next month, as well as Congressional support for Perkins reauthorization. NASDCTEc will be carefully monitoring the flurry of Congressional and Administration proposals likely to come from tonight’s speeches.

Plan For A Strong Middle Class & Strong America

Following on from his State of the Union address, President Obama released his blueprint to drive America’s economic growth. Key to the proposals is the acknowledgement that education and job training strengthen the middle class and prepare young people to compete in the global economy. This was reflected in the proposal to modernize America’s high schools for real-world learning. A new competition was launched which aims to reward schools that develop new partnerships with colleges and employers and provide learning in skills that today’s employers are demanding to fill jobs.

Also of note is the President’s proposal to strengthen and reform federal investment in CTE to better align programs with the needs of employers and with the demands of higher education. Again, more details are required in order to determine how this will affect funding and policy in CTE, but this will become clearer when the President’s budget is released next month. The report is available online and can be found here.

 

David Beckett, Advocacy Manager

State of the State Addresses: CTE a Priority for Governors in IN, RI, WY

February 15th, 2013

“The time has come to make career, technical and vocational education a priority in every high school in Indiana.” – Indiana Governor Mike Pence

Since the start of the new year, governors in each state have delivered state of the state addresses to provide an update on state priorities for the upcoming year. Unsurprisingly, many governors plan to prioritize education issues. But many governors, such as Indiana Governor Mike Pence, have also specifically identified Career Technical Education (CTE) as a critical area of focus for their states.

Indiana – Governor Mike Pence

“Career and technical education can provide our students with a pathway to success. It can launch entrepreneurs, give kids a reason to finish high school, and create a well-qualified workforce that will encourage business to build here and grow here. We have to give our kids, our future, every opportunity for success. That means quality schools, choices about their education and multiple pathways to success.”

Governor Pence wants to expand CTE in Indiana, and encourages greater collaboration between agencies to do so. In his state of the state address, Pence proposes creation of Regional Works Councils to help bridge the barriers between education and businesses. The Councils would assist with the creation of “regional, demand-driven curricula to bring high-paying career options to more Hoosiers in high school.”

Watch Governor Pence’s full address.

Rhode Island – Governor Lincoln Chafee

“Rhode Islanders looking for work need to be ready not only for today’s economy, but for the economy of tomorrow. And Rhode Island employers looking to hire or expand need to have confidence that there will be qualified candidates to fill available positions.”

Governor Chafee recognizes the need to connect secondary education with postsecondary education and the workforce. As part of his commitment to preparing students to the fullest extent, he has allocated in this year’s budget over $14 million to support repairs at Rhode Island’s CTE facilities.

Chafee also proposed no tuition increases for students at the Community College of Rhode Island, Rhode Island College, and the University of Rhode Island, as well as a $6 million increase for higher education. He also proposes $3 million in new state support for workforce development initiatives.

Watch Governor Chafee’s full address.

Wyoming – Governor Matthew Mead

“We recognize in Wyoming the importance of higher education whether it is a four-year or two-year degree. And we also recognize the value of career and technical education.”

Governor Mead lists CTE as one of his priorities for education in Wyoming, along with issues such as high school graduation rates, charter schools, and minimizing the potential for school violence.

“I would like to recognize those with technical training who roll up their sleeves every day to do the hard work. We too often take their contribution for granted. Our plumbers, welders, technicians, custodians, carpenters, heavy equipment operators – these are the people who do not always get the credit they deserve in building our state.”

Read Governor Mead’s full address.

Governors Pence, Chafee, and Mead are just three of the many governors who plan to prioritize CTE-related issues over the next year. Next week, NASDCTEc will highlight governors’ addresses that focus on partnerships, Science, Technology, Engineering and Mathematics, and other CTE-related issues.

Kara Herbertson, Research and Policy Manager
David Beckett, Advocacy Manager 

Legislative Update: FY 2014 Budget and State of the Union Address Delayed; Labor Secretary Solis Resigns

January 11th, 2013

Delays in FY 2014 Budget Release, State of the Union Address

President Barack Obama’s fiscal year 2014 budget, tentatively scheduled for release on February 4th, will most likely be delayed for several weeks. The President’ s State of the Union address, typically delivered in late January or early February, is also expected to be delayed.

UPDATE: The White House has announced that the State of the Union address will take place on Tuesday, February 12th.

Sequestration Update:

As reported earlier this month, Congress and the Administration approved a fiscal cliff deal, the American Taxpayer Relief Act of 2012, which included delaying sequestration cuts for federal programs until March 1st.

This week, congressional Republicans grappled with how to address defense sequestration. House Speaker John Boehner (R-OH) indicated that the sequester is a strong leverage point for Republicans, and that there will be Republican support for allowing sequestration cuts to occur on March 1st if President Obama does not offer other reductions. However, other Republican members have openly disagreed with Speaker Boehner.

Congressional Democrats and the Administration maintain that they oppose the sequester, but they also will not agree to replace it without new revenues or offsetting cuts that would not disproportionately burden the middle class.

Labor Department Secretary Hilda Solis Resigns

U.S. Department of Labor Secretary Hilda Solis announced this week that she will be resigning from her post, opening another position for Obama to fill for his second term.

Kara Herbertson, Research and Policy Manager

Legislative Update: Congress Reaches Fiscal Cliff Deal But Threats Loom

January 2nd, 2013

After weeks of negotiations between the White House and congressional Republicans, the U.S. House of Representatives approved a Senate-passed bill that averts major tax hikes for the middle class and temporarily avoids across-the-board spending cuts. The American Taxpayer Relief Act of 2012 (H.R.8) passed in the House last night by a vote of 257 to 167. The bill will prevent income tax hikes for 99 percent of Americans and will delay sequestration cuts for federal programs until March 1st. The legislation will now go to President Barack Obama to be signed.

Despite the imminent passage of the bill, the 113th Congress will immediately face many divisive issues when they convene for the first time on Thursday.  In February, the nation is once again expected to hit its debt ceiling, which coincides with expiration of FY 2013 funding. Also, the two-month delay of sequestration approved in this bill means that Congress will need to take action by the March 1st deadline to avoid deep cuts to federal agencies and programs.

The American Taxpayer Relief Act:

  • Tax cuts are maintained for individuals earning less than $400,000 per year and couples earning less than $450,000. Income tax rates will rise from the current 35 percent to 39.6 percent for those making more.
  • Unemployment insurance will be extended for a year for 2 million long-term unemployed Americans.
  • Bill extends for five years the American Opportunity Credit to help families pay for college expenses.
  • The bill delays sequestration for two months (see below for more information), and reduces the amount of overall cuts by $24 billion over nine years.
    • The bill reduces the total amount of the sequester over 9 years by $24 billion, bringing down the total from $1.2 trillion to $1.176 trillion. If the sequester takes place in fiscal year 2013, the total cuts would be $85.33 billion rather than the original $109 billion.

What does this mean for Career Technical Education (CTE)?

Since the passage of the American Taxpayer Relief Act will delay – not remove – the threat of sequestration, Perkins funding and other education funding are still threatened by considerable cuts. Sequestration cuts would be applied across-the-board and impact nearly every domestic program. The cuts will be less than the 8.2 percent originally projected by the White House’s Office of Management and Budget. However, the cuts would come with only seven months of spending left in the fiscal year rather than nine months; thus, the proportionate impact would still be considerable.

Since education programs are funded in advance and dollars have not yet been spent, the final percent for cuts would be taken from funding for the entire year rather than from a 7-month period as described above. CTE programs receive federal funding in July and October so, should sequestration occur, the impact on CTE programs would not be felt until the 2013-2014 school year.

Kara Herbertson, Research and Policy Manager

NASDCTEc Releases Recommendations for Perkins Reauthorization

December 21st, 2012

In 2013, the Carl D. Perkins Career and Technical Education Act (Perkins) will be eligible for reauthorization. Over the last two years, NASDCTEc has gathered input from our membership – through surveys, working groups, conference sessions, and calls – resulting in a broad set of recommendations for Perkins reauthorization. These recommendations are an introduction to the issues that matter to the CTE community, and members will have additional opportunities to engage in the development of a more detailed version of these recommendations in 2013.

Kara Herbertson, Research and Policy Manager

Legislative Update: No Deal on Fiscal Cliff Despite New Proposals from Obama, Boehner

December 19th, 2012

Despite proposals from both sides of the aisle, President Obama and Republicans in the U.S. House of Representatives, led by House Speaker John Boehner, have yet to reach an agreement on the fiscal cliff.

If no agreement is reached and the 8.2 percent across-the-board cuts, or sequestration, to federal programs occur in early January, Career Technical Education (CTE) would be one of many areas impacted. Sequestration would result in a $92 million reduction in Perkins funding for the next school year.

On Monday, President Obama made his third fiscal plan offer to House Republicans. The President’s offer would permanently repeal the sequester and backload $100 billion in nondefense discretionary cuts. Obama’s plan would include $1.2 trillion in new revenues from individual income taxes and include a permanent extension of Bush-era tax cuts for those making less than $400,000 per year. The plan also includes $1.22 trillion in spending reductions.

While White House staff hoped that House Republicans would work from Obama’s plan, Boehner announced Tuesday that he would pursue a Plan B bill that would raise income taxes for millionaires – extending the Bush-era tax rates for income less than $1 million – but would not address sequestration cuts, entitlement spending, and other expiring provisions. Boehner’s plan has already been stalled in the Senate and received a veto threat from the White House.

Since Monday, there have been no formal talks between the offices of Obama and Boehner. While House Republicans have rejected Obama’s offer, the President is encouraging them to “take the deal” in order to address the fiscal cliff crisis before the start of the new year. The end of the lameduck session, originally scheduled for December 14th, has been postponed until at least this Friday as Congress continues to work toward a deal.

Kara Herbertson, Research and Policy Manager

Legislative Update: House and Senate Announce Democratic Committee Assignments

December 14th, 2012

Democrats in both the U.S. House of Representatives and the U.S. Senate have announced their committee assignments for the 113th Congress, and some changes could impact Career Technical Education (CTE).

Senator Blumenthal (CT), a CTE supporter, and Senator Merkley (OR) will be leaving the Senate Health, Education, Labor and Pensions (HELP) Committee. Senators Christopher Murphy (CT), Elizabeth Warren (MA), and Tammy Baldwin (WI) will join HELP. On the Senate Appropriations Committee, which handles funding for federal programs, Senator Sherrod Brown (OH) will be leaving. View the full list of Democratic Senate Committee assignments here.

The House Education and the Workforce Committee will include several additional Democratic members including Representatives Jared Polis (CO), Gregorio Camacho Sablan (Northern Mariana Islands), and Joe Courtney (CT). The House Appropriations Committee will also add several Democrats including Representatives Tim Ryan (OH), Dutch Ruppersberger (MD), Debbie Wasserman-Schultz (FL), and Steve Israel (NY).

Review a current list of Congressional leadership for the 113th Congress on our Congressional Contacts webpage.

Kara Herbertson, Research and Policy Manager

House and Senate Release 2013 Calendars

December 5th, 2012

Both the U.S. House of Representatives and the U.S. Senate have released their calendars for next year. Compared to the last two years, the recess periods for the House and Senate are more in sync for 2013.

Congress will convene on Thursday, January 3rd. The House and Senate calendars are available online. We encourage CTE State Directors and district-level staff to reach out to their Members of Congress to plan school visits during these recess weeks.

Kara Herbertson, Research and Policy Manager 

 

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