Heading into the 2009 legislative stretch run, only five of the twelve annual measures that fund federal programs have been signed into law.  Because the current fiscal year (FY 2010) began on October 1, much of the government has continued to operate under a “steady state” continuing resolution (CR) since then.  The current CR expires December 18, 2009.  While the House has passed all twelve appropriations bills, the Senate has labored mightily to complete eight, with one more on deck for next week.  Given the need to find common ground on the unfinished measures via the conference process, the Senate’s heavy docket (which includes health care), and the shrinking calendar, observers expect most if not all of the remaining funding measures to be rolled into an omnibus package before Congress goes home for the holidays in mid-December. 

One candidate for an omnibus is the Labor, HHS, Education measure, which funds many of the programs of greatest interest to the CSU.  The House version, HR 3293, is relatively generous in proposing increased funding for CSU priorities including Pell Grants; early intervention programs like GEAR UP and TRIO; initiatives that support Hispanic-serving institutions; and a new program championed by the CSU that would provide competitive grants to universities piloting innovative means of serving students who are veterans.  The Senate’s committee draft would generally flat fund these accounts, though it would provide greater resources than the House to national and community service programs.

One bill that has been finalized is HR 2997, which covers FY 10 agricultural appropriations.  HR 2997 included $693,000 for the CSU’s Agricultural Research Initiative (ARI), a top system priority.  This continued ARI funding will be leveraged by state and industry resources to deliver cutting-edge applied agricultural and environmental research and workforce development in areas such as food science and food safety, water use efficiency, protecting natural resources and the environment, developing and adapting new technologies, improving agricultural products, and agricultural industry sustainability.  HR 2997 did not provide funding for new programs authorized by last year’s Farm Bill that would support non-land grant colleges of agriculture and Hispanic-serving agricultural colleges and universities.  Funding for these new initiatives will remain CSU priorities in the year ahead.

Newly elected Democrat John Garamendi was sworn in as a member of the House of Representatives today.  The former Deputy Interior Secretary and longtime California politico now represents California’s 10th Congressional district, with district offices in Walnut Creek and Antioch.  On Tuesday Garamendi, who most recently served as the state’s Lieutenant Governor, won a special election to succeed Ellen Tauscher, now Under Secretary of State for Arms Control and International Security in the Obama administration.  Garamendi’s swearing in returns the California House delegation to its full complement of 53 members, with 34 Democrats and 19 Republicans.

On September 23^rd, the California State Society held its sixth annual “Back to College Night” in Washington, DC.  All twenty-three California State University (CSU) campuses had a presence at this fun, casual event on Capitol Hill that celebrates California’s colleges and universities.  Back to College Night was widely attended by CSU alumni in the DC area, including Rep. Ed Royce (CSU Fullerton ‘77) and Rep. Diane Watson (CSU Los Angeles ‘68).  The event gave DC-area alumni a chance to connect with their alma maters, network and show a little school spirit!

On August 17, by a near party line vote, the House of Representatives passed HR 3221, “the Student Aid and Fiscal Responsibility Act of 2009 (SAFRA),” providing President Obama with an initial victory on his education priorities.  Funded by savings generated from replacing the bank guaranteed student loan program with the Federal Direct Student Loan program, HR 3221 would:

• increase the maximum Pell Grant award to $5,500 for FY 2010, and incrementally increase the maximum award to a projected level of $6,900 by 2019;
• provide a variable interest rate of no more than 6.8 percent per year on most federal student loans beginning in 2012;
• expand and modify the Perkins Loan program to provide a more widely available alternative to private bank loans for students;
• extend mandatory funding through 2019 for programs that benefit minority-serving institutions such as Hispanic-Serving Institutions (HSIs) to help students attain degrees in Science, Technology, Engineering, and Mathematics (STEM) fields;
• create a new five-year, $600 million per year Access and Completion fund to increase the pursuit of and persistence in postsecondary education for underserved populations; and
• simplify the Free Application for Federal Student Assistance (FAFSA) by eliminating questions relating to assets. 

The bill would also fund modernization and repair of public school and community college facilities, early education reform, and a new community college initiative, while putting $10 billion aside for deficit reduction.

A number of minor amendments were approved on the House Floor.  Those of interest to the CSU include:

• Language offered by the Committee Chair George Miller (D-Martinez) to clarify that both part-time and full-time students are eligible to receive a second Pell Grant award in an academic year to pursue year-round studies, designed to correct a proposal by the Department of Education that would only benefit full-time students; and
• An amendment to provide grants to institutions of higher education to hire Veterans Resource Officers to link students with Department of Veterans Affairs mental health care providers under the new Model Programs for Centers of Excellence for Veteran Student Success program.

While the higher education community generally favors many of the provisions contained in HR 3221, concerns remain regarding the predominant role played by states in the proposed Access and Completion Fund and changes to the Perkins Loan program, including a general shift away from serving low-income students, a reduction in loan forgiveness provisions, and institutional cost-sharing provisions.

A Senate companion to SAFRA has yet to be introduced, though the Senate Health, Education, Labor and Pensions (HELP) Committee could release draft language as early as this week.

August recess is over.  This week the Congress returned to DC to begin its push toward eventual adjournment for the year – perhaps around Thanksgiving.  The new fiscal year (FY 2010) begins on October 1, so making progress toward completing the twelve annual appropriations bills that fund federal programs will occupy considerable attention in the weeks ahead, along with the health care debate.  Meanwhile, today Inside Higher Ed provided its perspective on how higher education issues – including the Obama administration’s plan to dramatically change the federal student loan program – will play out during the fall session.