Washington Update: Federal Legislation, PostElection Landscape

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Washington Update Federal
Legislation, Post-Election Landscape Economic
Outlook
MHEC Annual Commission Meeting Minneapolis
November 19, 2008
Daniel Hurley, Director of State Relations
Policy Analysis American Association
of State Colleges Universities
Washington, D.C.
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Agenda

• Review of Federal Legislation
• Elections Outcomes Implications for Higher
  Education
• Economic Outlook

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Federal Legislation

• Productive 110th session of
  Congress
• New G.I. Bill
• Higher Ed Act reauthorization
• Themes student access, transparency,
  accountability

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Higher Education Opportunity Act of 2008

• Access
• Year-around Pell Grants
• Support for minority serving rural institutions
• Accountability
• Institutional Watch Lists
• State Maintenance of Effort Provision
• Private Sector Improved student loan counseling
  student loan sunshine provisions

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Post-911 Veterans Educational Assistance Act (New
GI Bill)

• Provides Tuition and Fee reimbursement to level
  of most expensive public university in the state
• Additional stipends covered for housing, books
• Concern about VAs ability
  to process the benefits by
  next August 1.

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2008 Elections Federal
 
 
 

• Larger Congressional majorities
• Senate 16 seat Democrat majority
• House 81 seat Democrat majority
• May facilitate passage of president-elects
  policy priorities
• College access stated priority of incoming
  administration
• Job 1 for Administration and Congress
  Facilitating Economic Recovery

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2008 Elections States

• Strong Democrat gains/Republicans garner some key
  victories
• Some coattail effect
• Impact on redistricting in 2011
• Policy focus on higher ed likely to be diminished
  due to economic priorities

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Data illustrations courtesy of
National Conference of State
Legislatures
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2008 Elections States Ballot
Measures

• Near record number of measures (153)
• 59 citizen-initiated 42 pass rate
• 84 legislative-referenda 73 pass rate
• No common themes addressed social issues,
  education, health care, tax
  policy, gambling

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2008 Elections States Ballot
Measures

• Affirmative Action NE (P) CO (F)
• Tax Increases
• CO (F) FL (F)
  ME (F) MN (P)
• Tax Cuts
• MA (F) MT (F) ND (F) OR (F)

PPassed FFailed
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2008 Elections States Ballot
Measures

• Gambling Expansion
• New Casinos OH (F) ME (F)
• New Lottery AR (P)
• Miscellaneous CO (P) MD (P) MO (P)

PPassed FFailed
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2008 Elections States Ballot
Measures

• Stem Cell Research MI (P)
• Construction Bonds NM (P)
• Governance LA (P)

PPassed FFailed
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Economic Outlook

• Most states facing weak revenue performance,
  growing budget gaps
• Shortfalls 60B FY09 80B FY10
• All solutions to be considered to address
  circumstances
• - Significant cuts - Revenue enhancements
• State support of higher education will clearly be
  an issue

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State Fiscal Outlook
Prior FY 2009 Budget Gap and Emerging Ones
Source NCSL survey, October 2008
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American Association of State Colleges and
Universities
Resources AASCU Government Relations and Policy
Analysis www.aascu.org Daniel Hurley, Director
of State Relations
hurleyd_at_aascu.org 202-478-4658