Federal Government Update

Mar. 2012

Advocacy

(1) Federal Funding for Advanced Placement® (AP®)

In late December, Congress passed the FY2012 Appropriations bill, which includes $26.95 million for the AP® Program. Given this reduction from last year's allocation of $43 million, Congress has recommended that the U.S. Department of Education focus the funding primarily on subsidies for low-income students’ AP Exam fees. To help fill the funding gap created by this year’s cut, the College Board’s contribution to low-income students’ fees will increase from $22 to $26 per exam in 2012.

Of the $26.95 million, approximately $20 million will cover AP Exam fees for low-income students, and the remaining $7 million will be directed to the AP Incentive Program, a competitive grant program that increases access to AP courses in high-need schools.

The Department of Education recently issued the FY2012 AP Test Fee Program application ( www.gpo.gov/fdsys/pkg/FR-2012-02-15/pdf/2012-3560.pdf), which includes details on funding for low-income students taking AP Exams. If you have specific questions about how your state is handling allocations this year, please contact your state department of education.

(2) ESEA Reauthorization and State Waivers

The House Education and the Workforce Committee held a hearing in late February to mark up the final two bills of their effort to reauthorize the Elementary and Secondary Education Act (ESEA). The vote for the bills, which would eliminate adequate yearly progress and increase flexibility for states in determining funding and accountability models, was 23–16, with all Republicans on the committee voting in favor of the bills, and all Democrats opposed. When discussing the two bills at the hearing, lawmakers debated the preferred role of the federal government in education. Republicans argued that states should have the flexibility to fund local districts and schools as they choose, and Democrats countered that the federal government should ensure that states are held accountable for maintaining high academic standards and providing assistance for students with need.

Since the path to finalizing ESEA Reauthorization remains lengthy, many states are taking advantage of the opportunity to apply to the U.S. Department of Education for waivers from key provisions of No Child Left Behind (the current ESEA). Of the 11 states that originally applied for waivers, 10 were successful because “they have developed and agreed to implement bold education reforms in exchange for relief from federal mandates.” In the recent second round of waiver applications, 26 states and the District of Columbia formally submitted requests. The latest states have all proposed plans to raise standards, improve accountability and support reforms to improve principal and teacher effectiveness.

For more information about state ESEA waivers, visit: http://www.ed.gov/news/press-releases/26-more-states-and-dc-seek-flexibility-nclb-drive-education-reforms-second-round.

(3) College Affordability

From Congress to the president, Washington is focused on college affordability and how to reduce costs for students and families. In his State of the Union Address and FY2013 Budget Proposal, President Barack Obama provided details about his new college affordability agenda. Many of these proposals require action by Congress and/or the appropriation of funds to be enacted. Below are the five main components of the president’s proposal:

• Reforming student aid to promote affordability and value
• The president will propose reforms to federal campus-based aid programs to shift away from colleges that fail to keep net tuition down and toward those colleges that work to keep tuition affordable, provide good value and serve needy students well.

• Creating a Race to the Top for college affordability and completion
• The president would invest $1 billion to spur systemic, state-level reforms (for example, revamping the structure of financing for higher education) that simultaneously lead to increased affordability, quality and productivity.

• Creating a First in the World competition to model innovation and quality on campuses
• The president would invest $55 million to support colleges and nonprofit organizations that are working to establish or scale up new programs (for example, redesigning courses to make better use of technology) that boost higher education attainment and outcomes.

• Providing better data for students to choose the right colleges
• The president has called for a “College Scorecard” for all degree-granting institutions, designed to supply essential information about graduation rates, college costs and potential earnings, in an easy-to-read format to help students and families select colleges that are suited to their needs, priced affordably and consistent with their career and education goals.

• Providing federal support to tackle college costs
• The president has called for Congress to keep interest rates low for 7.4 million student loan borrowers (if Congress does not act, the interest rates for subsidized Stafford student loans will increase from 3.4 percent to 6.8 percent on July 1), double the number of work-study jobs over the next five years, and make the American Opportunity Tax Credit permanent.