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Posts Tagged ‘Gainful Employment’

Midterm Elections Place Republicans in Control of Congress, Gainful Employment Regulations Finalized

Thursday, November 6th, 2014

CapitolThe long anticipated 2014 midterm elections took place on Tuesday, ushering in a wave of new Republicans into both chambers of Congress. The central question ahead of these elections rested on the balance of power in the Senate and with it full Republican control of the entire Congress. Late Tuesday night, that question was finally put to rest. As of this post, the GOP has picked up seven new seats in the Senate, with three races still in contention. In the House the results were much the same, with the Republicans swelling their majority in that Chamber to at least 243 and possibly 250— a high water mark for the Republican Party not seen since 1928.

Although a few races are still in contention, the Republican Party looks poised to add additional seats in both Chambers over the next several weeks, as the elections results continue to trickle in. Democrats who have served in both the House and the Senate on the Chambers’ respective education and appropriations committees have lost their seats which, along with the influx of new Republican lawmakers to the Capitol, will significantly change the composition of the Committees that oversee and ultimately fund the Carl D. Perkins Career and Technical Education Act (Perkins) along with other key education and workforce programs.

Senators Kay Hagan (D-NC) and Mark Pryor (D-AR) along with Representative Tim Bishop (D-NY), who have served on education and appropriations committees in both Chambers have all lost reelection. Two others including Senators Beigich (D-AK) and Landrieu (D-LA), are in races whose final outcome have yet to be determined.

So what does this all mean for the Career Technical Education community? First and foremost, the key Committees in both Chambers which will oversee the reauthorization of the Perkins Act— the Senate’s Health, Education, Labor, and Pensions (HELP) Committee and the House’s Education and the Workforce (HEW) Committee— will look dramatically different in the 114th Congress which is set to convene formally on January 3rd, 2015.

Current Ranking Member of the Senate’s HELP Committee, Lamar Alexander (R-TN), will likely become Chairman of this influential committee, where he is expected to prioritize the reauthorization of the Elementary and Secondary Education Act (ESEA) and the Higher Education Act (HEA) in the committee’s legislative queue. Additionally, the retirement of Chairman Tom Harkin (D-IA) has positioned Senator Patty Murray (D-WA) to likely take the Ranking Member position on the HELP Committee next January. Both Senators Alexander and Murray were among the main architects behind recent reauthorization of the Workforce Innovation and Opportunity Act— evidence that the two could also work in bipartisan fashion on other education and workforce issues.

In the House current HEW Chairman, John Kline (R-MN), is expected to retain his position pending Republican leadership approval of a request for a term-limit  extension to stay on as Chair (current House rules cap panel leadership at three terms). For the Democrats, Representative Bobby Scott (D-VA) is anticipated to fill the vacancy left by the retirement of current HEW Ranking Member George Miller (D-CA).

With the Republican Party set to take the reins of Congressional power early next year, the question now shifts to what education and workforce legislation— possibly including the Perkins Act— will be prioritized in a new Congress. Nevertheless, the current “lame duck” Congress still has much to accomplish beginning next week when both Chambers are set to reconvene.

As we have previously shared, Congress passed a Continuing Appropriations Resolution (CR) which extended Fiscal Year (FY) 2014 spending levels into the current FY 2015. This stopgap funding measure is set to expire on December 11th of this year and Congress must act to fund the federal government past that date. NASDCTEc and the Association for Career and Technical Education (ACTE) have called on Congress to pass a comprehensive omnibus spending bill to replace the current CR and restore funding to the Perkins basic state grant program. Senate Democrats recently circulated a similar request last month.

As all of this and more unfolds over the coming weeks and months, check back here for more information and updates.

Gainful Employment Regulations Finalized and Released

Last Friday, the Obama Administration’s Department of Education (ED) released the final version of its widely anticipated “gainful employment” regulations which impact postsecondary institutions offering career education programs. These newly finalized rules, set to go into effect July 1st, 2015, regulate institutional eligibility to access Title IV federal student aid under the Higher Education Act (HEA). Current law requires that most for-profit programs and certificate programs at non-profit and public institutions prepare students for “gainful employment in a recognized occupation” to access Title IV student aid money. However, current statute does not fully define the term “gainful employment” and these regulations have sought to do just that.

As we have previously shared, these regulations are the result of nearly five years of off-and-on negotiated rulemaking sessions between a broad swath of the higher education community and ED. A previous attempt by the Department to implement new gainful employment regulations was struck down by a federal district court in 2012 which ruled that the rules were arbitrarily constructed and applied, but upheld ED’s authority to make a new, more fully justified set in the future. Last Friday, after months of negotiated rulemaking sessions failed to reach consensus agreement, ED released the final version of these regulations for public consumption.

Under the proposed regulations gainful employment will be measured using three criteria which ED hopes will identify and weed out the lowest-performing programs among the institutions and programs these regulations apply to. Almost all programs at for-profit postsecondary institutions, as well as non-degree programs at public and private nonprofit institutions, including some community colleges and area career technical education centers, will be subject to these new regulations which include:

The Department’s factsheet which lays out these metrics in a bit more detail, can be found here.

Significantly, ED did not include a program cohort default rate (pCDR) as a third accountability metric— a measure which was included in the Department’s initial proposal this past spring. Many community colleges and sub-associate degree institutions argued that a pCDR metric would unfairly penalize their programs whose students largely do not receive any federal student aid.

While these regulations are set to go into effect July 1st, 2015, a transition period for institutions to meet the more stringent debt-to-earnings metrics will be established over the next seven years to allow programs to make the necessary changes to meet these new requirements. A press release from ED, containing more information can be found here and the final regulations can be found here.

Steve Voytek, Government Relations Manager 

By Steve Voytek in News, Public Policy
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Legislative Update: ED Introduces New Gainful Employment Regulations, The FIRST Act Moves to Full Committee

Friday, March 14th, 2014

CapitolAs we have shared previously, last December the Department of Education (ED) concluded a three-part series of negotiated rulemaking sessions regarding the Department’s proposed regulations on “gainful employment.” These proposed rules aim to introduce stricter accountability requirements for vocational programs at for-profit institutions and community colleges across the country in an effort to ensure they are helping their student’s find gainful employment upon graduation. ED assembled a negotiated rulemaking committee, composed of representatives from for-profits institutions, community colleges, and other relevant stakeholders, to establish a consensus on these proposals.

Unfortunately, the committee failed to come to such a consensus on ED’s draft regulations during the last of the negotiated rulemaking sessions this past December. Per the Department’s policies, a lack of consensus among the rulemaking committee allows ED to introduce new regulations on its own. Today, ED released these new regulations and will soon open them up for public comment over the next two months.

The regulations—over eight hundred pages in length— introduce stricter standards for the amount of debt students can accrue while attending institutions offering career-training programs. There are three main criteria a program must pass in order to maintain eligibility to receive federal financial aid under Title IV of the Higher Education Act. The first two are related to loan payments. Programs which have student loan payments higher than 30 percent of discretionary income or 12 percent of total income would fail under the new rules if those ratios persisted for any two out of three consecutive years. The third criterion is tied to a program’s cohort default rate (pCDR) for both completers and non-completers. If a program’s pCDR exceeds 30 percent for three consecutive years, the program is deemed failing.

Another important feature of these new regulations affords programs the ability to appeal for those that have less than half of their completers take on debt. This is an important change from ED’s last draft proposal in December and will benefit programs at Community Colleges and elsewhere which typically offer two-year programs at a relatively lower cost to students.

Barring any major revisions between now and October 30th of this year, these regulations are set to go into full-effect in 2016. As with previous iterations of ED’s gainful employment regulations, these new rules will likely be challenged in court. As this process unfolds, please check our blog for updates on how these regulations will likely impact those in the Career Technical Education community.

ED’s full gainful employment regulations can be found here and additional information on the process can be found here.

House Subcommittee Passes the FIRST Act

Yesterday, the House Committee on Science, Space and Technology’s Subcommittee on Research and Technology passed the Frontiers in Innovation, Research, Science and Technology (FIRST) Act (H.R. 4186). The bill would reauthorize the America Competes Act of 2010 and has now moved on to the full committee for consideration.

While some Democrats on the Subcommittee voiced concerns over reduced levels of funding for the National Science Foundation (NSF) and the National Institute of Standards and Technology (NIST), Republicans highlighted the bill’s focus on better coordination of existing federal Science, Technology, Engineering and Mathematics (STEM) initiatives. Among other provisions, the FIRST Act would create a STEM Education Coordinating Office to better manage STEM education activities and programs at the federal level and would be overseen by NSF.

Notably, the legislation would broaden the definition of STEM to include not only the core components laid out in its acronym, but also “other academic subjects that build on these disciplines such as computer science and other academic subjects that a State identifies as important to the workforce of the State.”

NASDCTEc will continue to monitor this legislation as it moves to the full Committee. The full bill can be found here and a statement from the Committee Chairman Lamar Smith (R-TX) can be found here.

JOBS Tax Credit Act Introduced in the House

This past Tuesday, Representative Maffei introduced the Job and Opportunity Bonus (JOB) Tax Credit Act which seeks to address the nation’s persistent skills gap by creating a temporary tax credit for employers to help pay for the cost of training their employees.

According to the Congressman, “So many of our local businesses want to invest in training for current and new employees, but don’t have the resources to do it. My bill helps address this issue by providing a tax credit for worker training programs.”

Among the provisions contained in the bill, the JOBS Tax Credit Act would pay for 50 percent of the cost to train employees in an approved program which would include apprenticeship programs, training offered by vocation or technical schools or community colleges, and a variety of industry or labor union-sponsored training programs. The tax credit would only be able to be utilized by employers with 500 employees or less and would last between 2015 to 2017.

NASDCTEc applauds Rep. Maffei’s work to better address the nation’s skills gap and urges Congress to take up this important piece of legislation.  His office’s full press release on the JOB Tax Credit Act can be found here.

Steve Voytek, Government Relations Associate 

By Steve Voytek in Legislation, News, Public Policy
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