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Congress Returns to Unfinished Business

Congress returns this week from its one-week Memorial Day recess with the Senate ready to take up the House-passed “extenders” bill, while the House determines their next move on the FY10 supplemental bill.

Tax Extenders:  The tax extenders measure (HR 4213) under consideration in the Senate includes a number of important program authorities that expired over the recess period, including authority for long-term unemployment benefits and provisions preventing a scheduled 21 percent cut in Medicare reimbursement rates to doctors.  The House narrowly passed the measure on May 28 just hours before leaving for its Memorial Day break.

The most important provision to the State of Washington is the “emergency” provision that would have extended for another six months increased federal aid for joint federal-state Medicaid programs (FMAP).  Because states lag behind national recovery, they expect 2011 to be as bad as 2010, and states will not begin the path to recovery until 2012.  The Senate is under pressure to include this provision in their version of the bill.

Supplemental Budget:  House action on the FY10 supplemental appears unlikely this week, as Democratic leaders have not yet agreed on a strategy to move the bill forward.  The supplemental provides funds for ongoing efforts in Iraq and Afghanistan, as well as funds to assist with the oil spill response in the Gulf.  The House bill would also include $23 billion to prevent layoffs of teachers when special aid from the stimulus runs out, as well as $5.6 billion to fill the Pell Grant shortfall. 

The Senate took action on this measure before the Memorial Day recess, but their version of the bill does not include the $23 billion education jobs package or $5.6 billion to cover the projected shortfall in the Pell Grant program.  The measure being developed by House Appropriations Committee Chairman David Obey (D-WI) is expected to include both provisions, but public higher education would not be included in the education jobs bill, nor would the state maintenance of effort (MOE) provision apply to higher education.  As pointed out in a May 27 higher education association letter to Mr. Obey, the latter provision could leave public institutions vulnerable to cuts as states strive to meet the K-12 MOE requirement. 

Budget and Appropriations:  Democrats this week will continue their efforts to pass a FY11 budget or deeming resolution in order to begin drafting and passing the annual appropriations bills.  Senate Budget Committee Chairman has indicated plans to push for passage of a five-year budget resolution in the Senate by the Independence Day recess.

Environment and Energy:  The BP Gulf of Mexico oil spill continues to dominate the congressional calendar, with at least three hearings scheduled for this week.  The Senate is likely to vote Thursday on a long-awaited resolution introduced by Senator Lisa Murkowski (R-AK) that would strip the EPA of its regulatory power over carbon emissions.  The resolution has 41 co-sponsors, including three Democrats. The measure needs 51 votes for passage.

The climate and energy bill sponsored by Senators John Kerry (D-MA) and Joe Lieberman (D-CT) will also be on the Senate’s agenda during the month of July.  Senate Majority Leader Harry Reid (D-NV) wrote in a letter to committee leaders last week that he wants them to offer legislative language related to the oil spill before the Independence Day recess for inclusion in a comprehensive energy bill that will be debated on the floor in June.  

Ocean Acidification Resolution:  On Tuesday, the House will consider a resolution introduced by Congressman Jay Inslee (D-WA) that calls for the United States to adopt national policies and pursue international agreements to prevent ocean acidification, to study the impacts of ocean acidification, and to address the effects of ocean acidification on marine ecosystems and coastal economies.  House Resolution 989 was first introduced by Inslee in December 2009 and currently has 53 co-sponsors, including Congressmen Brian Baird (D-WA), Norm Dicks (D-WA), and Adam Smith (D-WA). 

Science and Engineering Festival:  The USA Science & Engineering, the country’s first national science festival, will be held on the National Mall October 3-24, 2010. The National Academy of Sciences, the National Academy of Engineering, Institute of Medicine, and the National Research Council are official festival partners. The expo will give more than 500 US science and engineering organizations the opportunity to present a hands-on science activity to inspire the next generation of scientists and engineers.  Learn more about the Festival.

Health Insurance/Student Aid Reconciliation Package Released

Shortly after receipt of a Cognressional Budget Office (CBO) score that found that the health insurance and student aid overhauls would reduce the deficit by roughly $138 billion over the next years ($1.2 trillion over the next 10 years), the Democratic leadership in Congress posted the details of the bill on-line -as they had promised to do 72 hours prior to a vote. The move sets-up a potential vote this Sunday. Efforts have now intensified to find the 216 votes in the House and 50 votes needed in the Senate to finish work on the package. Analysis of the reconciliation package will be posted shortly on this website. In the interim, the full bill can be accessed here.

Health Insurance and Student Aid Overhauls Likely Headed for Reconciliation

Yesterday, during a speech at the White House, President Obama called on Congress to give health care reform an up or down vote before the Easter congressional recess -beginning March 29th. The message seemed to make clear that the President, along with Speaker Pelosi and Majority Leader Reid, intend to pursue passage of health insurance reform through the budget reconciliation process. The process forward would have the House pass the Senate’s version of health reform without changes, sending the legislation to the President for signature. Changes to the Senate’s bill would be done through a separate piece of legislation advanced through the budget reconciliation process, avoiding a filibuster, as only a simple majority vote is required.

House and Senate Democratic leaders are working to finalize a reconciliation bill as early as this week. The reconciliation bill would then need to be scored by the Congressional Budget Office (CBO). As the reconciliation bill is scored by CBO, Democratic leaders will be working with members of their own caucus to gain consensus on a variety of health care issues and working with the Senate Parliamentarian to figure out which provisions can be included in the reconciliation bill since Senate rules prohibit “extraneous matters” from consideration. The reconciliation bill is seen as key to coaxing some House Democrats to vote in favor of the Senate’s bill, which is opposed by some liberal and conservative Democrats.

Since the Congress can only do one reconciliation bill for fiscal year 2010, the Student Aid and Fiscal Responsibility Act (SAFRA) would have to advance along with healthcare, be passed through the normal legislative process, or be deferred until a future date. At present, the votes do not exist in the Senate to advance SAFRA through the normal legislative process. As a result, if it is to happen this year, the reconciliation process is the only possible vehicle. The Senate has yet to reveal its own version of SAFRA. However, the legislation is likely to emerge in the next few weeks, and move rapidly in order to meet the Easter deadline set by the President.

Pell grant recipients interested in providing a testimonial to the Senate on the program’s impact are invited to contact Jonathan Nurse (jnurse@uw.edu).

President Obama’s Health Insurance Reform Plan (Updated 2/22)

FY11 Budget Overview

Despite an overall spending freeze proposal from the Obama administration, the student aid and research priorities of the higher education community faired relatively well in the President’s Budget Request for FY11. Within the Department of Education, the PBR seeks to increase the maximum Pell grant to $5,710 in FY11 from the current $5,550 level. More importantly, the proposal would make the Pell grant an entitlement, which would guarantee future increases. However, several of the agency’s student services programs (e.g. TRIO, GEAR UP, Graduate Assistance in Areas of National Need) were level funded in the proposal.

On the research side, the National Institutes of Health were provided an increase of $1 billion (3.2%) over FY10 in the FY11 PBR -representing the largest NIH dollar increase in 8 years (outside of the Recovery Act). Additionally, the National Science Foundation (NSF) is provided an 8% increase to $7.4 billion. Within NSF, the Ocean Observatories Initiative — a UW joint project — was provided $90.7 million for FY11 -as expected. The Department of Energy, Office of Science, is provided a 4.4% increase in the PBR. Within DoE, the Advanced Research Projects Agency -Energy (ARPA-E) is slated for its first significant regular annual appropriation -at a level of $300 million. Additionally, workforce investments for scientists and teachers is identified as a priority area for the agency.

The PBR includes an extension of an additional six months, through June 2011, the temporary Federal Medical Assistance Percentage (FMAP) increase provided by the Recovery Act. The extension will result in an additional $25.5 billion to States for maintaining support for children and families helped by Medicaid. Details on agency and program line items are provided in previous posts, and additional analysis will be provided by the Office of Federal Relations.

The UW FY11 Federal Agenda will express support for many of the increases in student aid and research contained in the PBR. Additionally, UW specific requests will be made in the following areas: tidal energy research and development; promoting health professions through dental, nursing, and physicians assistant programs; environmental sustainability; increasing student services for our returning veterans; emerging research on the treatment of battlefield injuries to eyes and bone; small business development in the Tacoma area; and increasing K-12 learning outcomes through the use of advanced technology in classrooms.

The FY11 appropriations process will play out in the halls of Congress over much of this calendar year, with the goal of having a final budget in place by October 1, 2010. However, as was the case last year, Congress often requires extra time to push spending bills across the finish line.

House Passes Jobs Bill with Higher Ed. Provisions

Yesterday, the House of Representatives passed a jobs package (H.R. 2847 -Jobs for Mainstreet Act of 2010) that provides $75 billion of unspent funds from the Troubled Asset Relief Program (TARP) for assistance to states and local governments in avoiding government layoffs and supporting infrastructure repair and modernization. 

Of note to the higher education community in the bill is an additional $300 million for the College Work-Study program, as well as the following aid for public colleges and universities:

Education Jobs Fund: $23 billion for an Education Jobs Fund to help States support an estimated 250,000 education jobs over the next two years.  95% of the funds will be allocated by States to school districts and public institutions of higher education to retain or create jobs to provide educational services and to modernize, renovate, and repair public education facilities. The remaining 5% of funds is reserved for State education-related jobs and administration of the Education Jobs Fund.”

The Senate will not act on a companion bill until January at the earliest.

Appropriations Committee Summary of H.R. 2847