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Obama FY14 Budget Proposal: Impact on CTE

April 10th, 2013

Today, President Obama released his proposed budget for FY14, which includes a number of proposals that would affect Career Technical Education (CTE). Traditionally, the President’s budget is released in February. The delayed release, due in large part to sequestration debates, may limit its impact given that the House and Senate have already passed their versions of the budget.

The FY14 budget proposal calls a $71.2 billion investment in the Department of Education, a 4.5 percent or $3.1 billion increase over the FY13 pre-sequester level. Comprehensive details on the Department of Education’s proposal can be found here:

Below are key elements of the budget proposal that would impact CTE:

$1.1 Billion for Perkins: The budget calls for adoption of the administration’s Investing in America’s Future: A Blueprint for Transforming Career and Technical Education that was introduced in April 2013 and to return Carl D. Perkins Career Technical Education Act (Perkins) state grant funding to FY13 pre-sequester levels or $1.123 billion.  National Programs are recommended for a $10 million increase to $17.8 million.

$300 Million for New High School Redesign: Highlighted in the 2013 State of the Union speech, the President’s budget proposal calls for competitive college and career readiness grant program to districts that partner with employers (including business, industry, non-profits and community-based organizations) and post secondary institutions. Grants could be used to redesign high schools so that students are better prepared for college and career success. Funds could be used to support:

  1. college credit earned through dual enrollment, Advanced Placement courses and other post secondary learning opportunities
  2. career-related experiences or competencies obtained through organized internships and mentorships, structured work-based learning or other related experiences.

 

$42 Million for Dual Enrollment: This funding would be for demonstration and evaluation of dual enrollment programs by making grants to establish or expand dual enrollment programs aligned to career pathways and local workforce needs.  The program would support opportunities for both high school and adult students to earn college credits while enrolled in high school or a GED program.

$4 Billion for Community Colleges: Beginning in FY15, the budget calls for $ 4 billion in mandatory spending for a Community College to Career Fund that would support training programs and activities that prepare individuals for jobs in high-growth and high-demand sectors. An additional $4 billion would be authorized under the Department of Labor and the program would be jointly administered by both Federal agencies.

In addition, the budget proposal calls for:

  •  $1 billion for a Race to the Top competitive fund for higher education focusing on affordability and completion;
  • $3 billion for competitive grants focused on increasing the effectiveness of teachers and principals;
  • $1.3 billion for 21st Century Community Learning Centers;
  • $215 million for the i3 (Investing in Innovation);
  • $85 million for state longitudinal data systems; and
  • $265 million for STEM programs.

Tomorrow, we’ll provide you with a summary of relevant details from the Department of Labor FY14 budget proposal.

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Legislative Update: New Sequester Cut to FY13; President’s Budget for FY14; Senate Passes FY14 Budget Proposal

March 29th, 2013

New Sequester Cut to FY13

We reported last week that the Senate and House approved a Continuing Resolution (CR) to provide funding for federal programs through the remainder of FY 13. Earlier this week, President Obama signed the CR into law. Since our last report, both the Congressional Budget Office (CBO) and the Office of Management and Budget (OMB) have analyzed the CR to determine whether or not the enacted legislation has exceeded the budget caps. While the CBO predicts the budget caps will not be exceeded in FY13 under the CR, the OMB predicts that the budget caps will be exceeded. As the OMB has sole authority on this matter, they are requiring an additional 0.2 percent cut to non defense discretionary (NDD) spending to ensure the budget caps are not exceeded. The expected 5 percent sequestration cuts will then be made.

Since the Carl D. Perkins Career and Technical Education Act (Perkins) falls under the NDD category, Perkins funding will be reduced for FY 13. This means that the previous tables provided by the Office of Vocational and Adult Education (OVAE) are no longer accurate. Due to the unforeseen additional 0.2 percent cut, OVAE will have to run their formulas again to determine state allocations for July 1, 2013. We will pass along any additional information to members as it is provided to us.

President’s Budget for FY14

After several delays in its release date, the White House has announced that President Obama’s budget will be made public on Wednesday, April 10, 2013. We will review the President’s budget closely to see what is proposed for Career Technical Education (CTE), as CTE was featured so prominently in his State of the Union address.

Senate Passes FY14 Budget Proposal

The Senate has now passed S.Con.Res.8, their proposal for the FY 14 budget. The budget passed the Senate by 50 votes to 49, with four Democrats voting against the proposal. As reported in a previous blog post, S.Con.Res.8 would replace the sequester cuts from FY14 with a balanced deficit reduction package. This would mean that NDD spending in FY14, which includes Perkins funding, would be at much higher levels than what is proposed in the House Budget, H.Con.Res.25. Budget proposals generally do not provide recommendations for program level increases or decreases but instead provide a broad framework, an overall cap on spending, and guidelines for where investments should be made. Therefore, the exact impact of either proposal on Perkins funding is unclear at this time.

Now that both the House and the Senate budgets have passed, a Conference Committee will be held to discuss differences between the House and Senate proposals and for compromise to be reached. After that, the appropriations process will begin, which will provide more details on how each party would fund NDD spending. As soon as more details are available, they will be shared with members.

David Beckett, Advocacy Manager

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IN Governor Delivers on State of the State Promise, Passes Law that Expands CTE

March 27th, 2013

In his January state of the state address, Indiana Governor Mike Pence clearly prioritized expanding Career Technical Education (CTE) and aligning CTE programs with the needs of the workforce. Just two months later, a bill supporting this expansion has been passed unanimously in the Indiana General Assembly, and will soon be signed into law by Governor Pence.

The Indiana Works Councils bill will use state and local resources to create Indiana Works Councils (IWC) that help bridge the barriers between education and businesses. Each IWC will identify opportunities and demands for CTE and partnerships with business and industry in each region. Using this information, the IWC will develop more relevant CTE curriculum and identify work-based learning opportunities to increase the alignment of career pathways to in-demand jobs.

Governor Pence stated that, “The passage of this legislation with unanimous and bipartisan support demonstrates the commitment of the people of our state to make career and vocational education a priority in every high school in Indiana again. Today, the Indiana General Assembly took an important step toward making certain that our schools work for all our students, whether they’re college- or career-bound.”

Governors and other policy makers across the nation continue to express support for CTE. Laws such as the IWC legislation will help increase the quality and relevance of CTE programs, and improve opportunities for students to land well-paying, in-demand jobs.

Kara Herbertson, Research and Policy Manager

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Legislative Update: House Passes FY14 Budget Proposal; House Passes Continuing Resolution

March 22nd, 2013

House Passes FY14 Budget Proposal
The House yesterday moved to pass H.Con.Res.25 to establish the budget for the U.S. government for FY 14 and set forth appropriate budgetary levels for FY 15 through FY 23. Chairman Ryan’s budget proposal for FY14, with 221 votes cast in favor of the measure and 207 votes against it. Ten Republicans voted against passage. As reported in a previous blog post, H.Con.Res.25 proposes an 11.7 percent reduction in overall non defense discretionary (NDD) spending in FY14, which includes Carl D. Perkins Career and Technical Education Act (Perkins) funding. The Senate is currently debating amendments to their own budget proposal (S.Con.Res.8).Once the final version passes in the Senate, a Conference Committee will be held to discuss differences between the House and Senate proposals and for compromise to be reached.

Houses Passes Continuing Resolution
The House yesterday also passed the Senate-approved Continuing Resolution. This decision means the bill is passed to President Obama to sign. The bill, which will presumably be signed into law, would not require any additional cuts to Perkins other than the already agreed upon 5 percent cut from sequestration.

David Beckett, Advocacy Manager

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Legislative Update: Senate Passes Continuing Resolution; House Republican and Democrat FY14 Budget Proposals; Senate Democrat FY14 Budget Proposals; President’s FY14 Budget Proposal

March 21st, 2013
Senate Passes Continuing Resolution

On March 20, the Senate voted 73-26 to pass its version of the FY13 continuing resolution (CR). This CR would see all Department of Education programs funded at their FY13 levels and then cut 5% by the sequester. It is important to note that the Senate passed CR does not include the 0.098% across the board cut that was included in the House approved CR.

The House must now decide whether or not to accept the Senate version, which would mean dropping the 0.098% across the board cut,  and pass the bill to the President to sign or to try to work across the chambers to resolve the differences between the two proposals. NASDCTEc will continue to monitor this ever-changing and very active policy environment and provide you with more information on the emerging budget and sequestration decisions being made. Because the Perkins Act is forward funded, the decisions made with this CR would effect the funding that states get on July 1, 2013.

House Republican and Democrat FY14 Budget Proposals

House Budget Committee Chairman Paul Ryan (R-WI) recently announced his plan for the FY14 budget (H.Con.Res.25). The measure, which passed through the House Budget Committee last week on a party line vote of 22-17, is expected to be voted on later today and would see an 11.7% reduction in overall non defense discretionary (NDD) spending in FY14. NDD spending includes all education and workforce funding, including Perkins. Budget proposals generally do not provide recommendations for program level increases or decreases but instead provide a broad framework, an overall cap on spending, and guidelines for where investments should be made. The Ryan budget proposal does not provide details on which programs would be reduced to achieve the 11.7% reduction in NDD, so it is unclear of the implications of this proposal on Perkins funding. The Ryan proposal does recommend moving the Community College/TAA Grant program, which is administered by the Department of Labor, to the discretionary side of the budget; it is currently on the mandatory side of the budget.

Representative Chris Van Hollen (D-MD), Ranking Democrat on the House Budget Committee, had offered up an alternative budget proposal on behalf of House Democrats that would rescind the sequestration cuts. The proposal recommended maintaining the current investment in education programs and also lacks the detail necessary to know what impact would be had on Perkins funding, however the House yesterday rejected the Van Hollen budget along with all other budget substitutes.
Senate Democrat FY14 Budget Proposals

Senate Budget Committee Chairwoman Patty Murray (D-WA) also announced her plan for the FY14 budget (S.Con.Res.8). The proposal would see the sequester eliminated, resulting in more Perkins funding in future years than currently expected. It would also see $4 trillion in savings reached over ten years, as had been recommended by the Simpson-Bowles Commission. Debate on the measure had been held up until the Senate had passed a bill on the FY13 continuing resolution. Under the Congressional Budget and Impoundment Control Act of 1974, 50 hours of debate are allowed on the budget, meaning deliberations could go on until Saturday evening. The divide between the political parties is clear when comparing the budget proposals, with fierce debates expected as the measures move forward. Once both the House and the Senate pass their respective proposals, a Conference Committee will be held, allowing differences between the proposals to be discussed and for compromise to be reached.


President’s FY14 Budget Proposal
The President’s FY14 budget proposal has yet to be released. Typically, this proposal is released in early February and kicks off the budget debates. However, the President’s proposal, expected in early to mid-April, will be coming along when the Congressional debates may well be complete.
David Beckett, Advocacy Manager

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March CTE Monthly: Interest in STEM Careers Rising; Exemplary CTE in NY, TX and OH

March 19th, 2013

CTE Monthly, a collaborative publication from the Association for Career and Technical Education and the National Association of State Directors of Career Technical Education Consortium, features the latest news on Career Technical Education (CTE) from across the nation for CTE stakeholders and Members of Congress.

In the March edition, read more about:

  • Rep. Glenn Thompson (R-PA) and Rep. Jim Langevin (D-RI) Recognized as CTE Policymakers of the Year
  • Interest in STEM Careers Rising
  • Human Services Career Cluster® 
  • Exemplary CTE Programs and Students in New York, Texas, and Ohio

View archived CTE Monthly newsletters and other advocacy resources on our Advocacy Tools Web page.

Kara Herbertson, Research and Policy Manager

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Revised Legislative Update: CR, Meeting with Senate HELP Committee, Houses Passes WIA Reauthorization

March 17th, 2013

FY13 Continuing Resolution – Proposed 0.098% Across the Board Cut



The Senate is considering a continuing resolution (CR) that proposes an across the board cut of 0.098%. Because the CR is for FY13, this across the board cut would get applied to funding before and in addition to the planned 5% across the board sequestration cut.

What does the CR mean for Perkins? It seems likely that the proposed across the board cut of 0.098% will be approved and if so, it would apply to Carl D. Perkins Career and Technical Education Act (Perkins) FY13 funding as well as all other federal education and workforce programs. For Perkins, FY13 is the funding states get beginning July 1, 2013. Therefore, if this CR is passed, it would mean that OVAE would have to revise and re-issue the funding tables states received on March 8, 2013.

Next Steps on the CR: The Senate will continue to debate the CR on Monday, March 18 at 2 p.m. E.T. When the CR is passed and signed by the President, which is expected to happen, NASDCTEc will provide a further update detailing out the specific impact on Perkins funding.

Meeting with Senate Health, Education, Labor and Pension Committee Republicans on Perkins

NASDCTEc made outreach to Democrat and Republican staff from the House and Senate Committees charged with taking up the reauthorization of Perkins. This week, NASDCTEc met with a representative of Senator Alexander (R-TN), Ranking Member on the Health, Education, Labor and Pensions Committee, who indicated the Senator’s strong interest that Perkins be reauthorized as soon as is practicable so CTE can contribute most effectively to the economic recovery and the education of the nation. However, this staff member also noted the reality that the reauthorizations of the Elementary and Secondary Education Act (ESEA) and the Workforce Investment Act (WIA) technically are in the queue and should be completed first as WIA was due for reauthorization in 2003 and ESEA was due for reauthorization in 2007, whereas Perkins was due for reauthorization in 2012. NASDCTEc will continue to meet with Committee staff and share any movement in the interest or scheduling of reauthorization. In addition, these staff have been invited to be part of a panel at the NASDCTEc Spring Meeting.

House Approves Measure to Reauthorize Workforce Investment Act


On Friday, March 15, 2013, the House approved its measure to reauthorize the Workforce Investment Act (WIA), H.R.803, also known as the Supporting Knowledge and Investing in Lifelong Skills Act (SKILLS), by a vote of 215 to 202. An amendment by Representative Tierney (D-MA-6) which would have strengthened the role of community colleges in workforce investment boards was defeated 227 to 192.  A comprehensive summary of H.R. 803, detailing the impact on CTE, will be made available to NASDCTEc members next week. The passage of this bill is the first step in reauthorization; the Senate still needs to consider its reauthorization proposal for the WIA.

 

 


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Texas Bills Would Create a Fast Start Program for Students

March 8th, 2013

The Texas Fast Start Program, an initiative designed to train workers faster and in the skills local industries need most, is being proposed via a pair of companion bills recently introduced into the Texas House and Senate, according to Dan Zehr of the American-Statesman.

In the news release, Zehr stated “The program would bring community colleges and public institutions together with employers to identify and craft training programs for needed skills. But it would also allow students to advance through classes as they master various skills, rather than requiring a arbitrary number of hours in classrooms or labs.”

Ramona Schescke, Member Services Manager

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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 [email protected].

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

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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

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