MEMORANDUM. Republicans Democrats Democrats Republicans Independent. *12 House Races Undecided *2 Senate Races Undecided

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1 777 6th Street NW, Suite 500 Washingtn DC Tel: (202) Fax: (202) MEMORANDUM FROM: Penn Hill Grup DATE: Nvember 5, 2014 SUBJECT: 2014 Midterm Electin and Federal Educatin Plicy The midterm electins were n Tuesday, Nvember 4 with all 435 Huse seats and 36 Senate seats in play. This mem includes a brad lk at the electin results, an analysis f hw the results will affect plitics and plicy in the lame-duck sessin and the 114 th Cngress, a summary f changes in Administratin leadership, Huse and Senate Leadership, and cmmittee rsters and leadership, and an verview f the FY 2015 apprpriatins prcess and the current status f majr educatin and jb training pending reauthrizatins. These dynamics will shift as the lame-duck sessin plays ut, the FY 2015 budget is reslved and leadership psitins are decided, and as such, we will prvide an updated versin f this mem at the start f the new Cngress in January. ELECTION RESULTS Huse Senate Republicans Demcrats Demcrats Republicans Independent *12 Huse Races Undecided *2 Senate Races Undecided In the Huse, Republicans have expanded their majrity with at least 243 Members (Republicans cntrlled the Huse with 3 vacancies ging int the electin). Currently, Demcrats have maintained 180 seats with the utcme f 12 races still t clse t call. In the Senate, Republicans tk the majrity with at least 52 Senatrs, while Demcrats maintained 44 seats, plus tw Independents wh are expected t caucus with Demcrats. Demcrats cntrlled the Senate ging int the electin. The Alaska race is still t clse t call and there will be a runff in Luisiana in December. ELECTION ANALYSIS While the midterm electins were clearly a big win fr Republicans, and a big lss fr Senate Majrity Leader Harry Reid (D-NV) and Senate Demcrats generally, it will take sme time fr Members t return t Washingtn and wrk their way thrugh the final impact f this mst recent wave electin. Having experienced changes in party cntrl f Cngress several times in the past as staff members f bth parties, we knw nly t expect the unexpected in the cming days. There will be lts f rumrs, lts f rhetric, and lts f fits and starts as a larger, embldened Huse Majrity, a new and larger-than-expected Senate Majrity, and a White

2 Huse set back n its heels by the electin results decide hw t wrk with ne anther. It wn t be easy, and it wn t be pretty. That said, here is where ur attentin will be fcused as we head int the lame-duck sessin and the 114 th Cngress: HOW LAME IS THE LAME-DUCK? Cngress cmes back after Veteran s Day, and the first rder f business will be t handle the administrative chres f rganizing fr the next Cngress: electing leaders, chsing cmmittees, selecting ffices, etc. These actins will cnsume the Hill fr the next few weeks. There are tw majr legislative items facing this Cngress, which still has Demcratic cntrl f the Senate: finalizing FY 2015 apprpriatins and dealing with a significant backlg f Presidential nminees. In additin, fr thse fcused n educatin plicy, there are tw pending reauthrizatins the Child Care and Develpment Blck Grant Act (CCDBG), which is scheduled fr a vte the first week Cngress is back, and the Educatin Sciences Refrm Act (ESRA), which culd als be cnsidered in the lame-duck sessin. Budget. On the budget, there are a variety f ptins that range frm simply passing a lng-term cntinuing reslutin (CR) that keeps the budget n aut-pilt fr the cming year and hlds funding at current levels, t a shrt-term CR that puts this issue t the next (GOP-cntrlled) Cngress, t passing an mnibus apprpriatins bill that makes specific chices n prgram funding levels that carry frward int the next year, t sme cmbinatin f an apprpriatins bill with specific funding levels fr certain agencies and prgrams and a CR fr thers. The Penn Hill Grup Take. Cngress rarely passes a straight CR with n changes and this year is nt likely t be the exceptin. Additinal military spending will cme up either in an mnibus r CR apprach (r a supplemental bill early in the new year), due t varius freign crises. We think the leaders f bth parties wuld like t settle funding fr all f FY 2015 and will at least make an attempt t pass an mnibus bill that hews clsely t current agreed upn spending caps. The ne exceptin t this may be additinal defense spending depending if it is classified as emergency spending that is nt subject t caps. Ultimately, the questin is whether r nt Senate Republicans like Sen. Ted Cruz (R-TX) and embldened Huse cnservatives will allw anything f substance t g frward while the Demcrats still cntrl Cngress. Ultimately, we believe there are t many prcedural and plitical hurdles t passing an mnibus bill and we think it is mre likely that Cngress will leave twn passing a shrt-term CR that punts this issue t next spring. Nminees. President Obama has a number f nminees pending befre the Senate including a number f key educatin nminees. If they are nt cnfirmed this Cngress, it will likely be well int next year befre they have any chance t be cnsidered, further hampering the Administratin s ability t gvern n a variety f issues, large and small. The Penn Hill Grup Take. Majrity Leader Reid significantly altered the nminatins prcess when he changed the rules last year t theretically make it easier t cnfirm the Administratin s nminees. This change was a majr factr in the increase in partisan debate between the parties. In fact, while it may have made it easier t deal with high-prfile psitins, it has slwed dwn the prcess fr everyne else as Republicans dig in their heels and insist n regular rder. 2

3 That said, when it cmes t nminatins the key is judges. If the Administratin can cut a deal with Senate Republicans n judges, that may pen up the lg jam n ther nminees. There may be Republicans wh are willing t make a deal, but the questin is if the Cruz-wing will allw it. Our best guess is n. We believe the dds are nt very high that many nminatins will make it thrugh during the lame-duck sessin. As a result, we believe the Administratin will find ther ways t appint peple t key psitins, such as bringing nminees n as cnsultants befre they are cnfirmed. Other issues: Can ESRA and CCDBG make it thrugh? Fr thse interested in educatin research and child care, there is still sme unfinished business as bth ESRA and CCDBG reauthrizatins are pending in the Senate fr final cnsideratin. The ESRA bill has been agreed t by bth the leaders f the Huse and Senate, as well as by the Administratin, and must pass prcedural hurdles in the Senate and then be sent t the Huse fr cnsideratin befre ging t the President fr signature. The CCDBG bill has already passed the Huse and needs nly t clear the Senate befre btaining the President s signature. In thery, bth bills have been tied tgether by Senate educatin cmmittee Chairman Tm Harkin (D-IA) in attempt t bring them bth t the Senate flr, but he is facing pressure frm Sen. Pat Tmey (R-PA) wh is pushing t add strnger backgrund check legislatin t the CCDBG bill. Sen. Harkin als may als cme up against Republicans wh are interested in adding strnger privacy prtectins t the bill, as well as ppsitin by sme Republicans wh dn t think anything shuld be passed while the Demcrats cntrl the Senate. The Penn Hill Grup Take: Final passage f bth f these bills cmes dwn t hw much fcus Sen. Harkin puts n ding the leg wrk t pass them befre heading ff int retirement; and, whether Sen. Lamar Alexander (R-TN) is willing t help clear the decks f pssible GOP amendments and ppsitin and agree n a prcess t quickly get this dne in the Senate. Fr Sen. Alexander, he must weigh whether it s wrth using any chits n bills that are nt his tp pririty versus his desire t eliminate these relatively nn-cntrversial issues frm his agenda next year. While it culd g either way, we wuld put a thumb n the side f the scale that favrs the Senate passing ne r bth f these bills befre adjurning. WILL THIS BE THE MCCONNELL, CRUZ, r KIRK SENATE? With this win, Republicans culd nt be mre thrilled with their plitical place in the cuntry right nw. That said, hw will they gvern? Senate (and Huse) Leaders are cunseling mderatin: nt ver-prmising, setting achievable gals and wrking with the Demcrats when pssible. Will that be enugh fr Sen. Ted Cruz (R-TX) and his Tea Party allies in the Huse and Senate? Will there ever be a way t accmmdate them? Furthermre, d nt frget that the next electin, including a Presidential electin, is nly tw years away. This time, hwever, the tables will be turned and it will the Republican Party with far mre expsure in terms f the number f Senate seats they will be defending. Senatrs like Mark Kirk frm Illinis, a state verwhelmingly carried by President Obama, will be facing reelectin in prminently Demcratic states and certainly will nt want t vte n every item n the agenda favred by Sen. Cruz. They will prtest t their party leadership, whse very psitins nw depend n maintaining a majrity and keeping Republican seats in blue states. The Penn Hill Grup Take. It will be messy, but it cmes dwn t likely incming Majrity Leader Mitch McCnnell (R-KY). McCnnell has a histry f wrking t mve legislatin thrugh the prcess and with his electin behind him, is likely t return t this fcus. Expect him t allw mre vtes fr bth sides. During a press cnference tday, McCnnell stated that he plans t 3

4 get the Senate back t nrmal, and that we re ging t pass legislatin, sme f which [Obama] may nt like, but we re ging t functin. ARE THINGS REALLY GOING TO CHANGE? The press and punditry is full f talk abut repudiatin f the President and cngressinal Demcrats. But with the President still in ffice and able t vet whatever he desn t like frm Cngress, is anything really ging t get dne? The Penn Hill Grup Take. Change in partisan cntrl happens mre and mre frequently nwadays in Cngress, and the fact is, big changes in hw the actual chambers functin, regardless f party cntrl, rarely happen. We expect the same here. The single biggest change in the Senate will be the fact that hearings and versight activities will n lnger be cntrlled by Senate Demcrats. Fr example, fr educatin-related hearings this means n mre back-tback hearings n the fr-prfit and student lan industries, and mre versight f the U.S. Department f Educatin. In terms f passing legislatin such as reauthrizatins f the Higher Educatin Act (HEA) and the Elementary and Secndary Educatin Act (ESEA), the fact remains that while Republicans will have mre f a chance t press their pririties, they will still need the supprt f the Administratin and cngressinal Demcrats (especially in the Senate) t get anything signed int law. SHOW ME THE MONEY With Republicans in cntrl, des that mean less spending? The Penn Hill Grup Take. While the budget caps fr dmestic prgrams are nt likely t be increased by much, if any, by Cngress, expect the GOP t press fr mre spending n defense. This will likely pen the dr fr negtiatins with the Administratin and cngressinal Demcrats fr a bit f an increase in dmestic spending. We wuldn t be surprised if this happens fr future years. In additin, the President is nt likely t be ttally shut ut f the apprpriatins prcess in terms f getting at least sme f his educatin pririties funded. Presidents f bth parties have a lng histry f getting mney fr at least a few f their tp prgrams, and we expect the same will be true fr President Obama. PROCESS, PROCESS, PROCESS Prcess in Washingtn nwadays is plicy. A mre pen prcess in the Senate culd lead t mre bills passing, and mre issues being debated. A mre active apprpriatins prcess culd lead t mre legislative riders n a variety f key issues being addressed during budget debates. Finally, the President has lts f prcedural avenues t make plicy prgress when he is stymied by Cngress: executive rders, regulatins, guidance and varius ther means. This President has expressed a willingness t take these actins and is likely t cntinue t d s. The Penn Hill Grup Take. Expect a mre pen Senate that will debate mre issues, which means mre chances fr bth sides t press their pririties. The same hurdles n the Senate flr will cntinue t exist, hwever, s cperatin between the parties will be required t accmplish anything. Als expect the GOP t press t get things dne in the apprpriatins prcess and t use the budget as leverage t accmplish sme f their plicy pririties; they wn t win n everything, but they will n sme key issues. Finally, expect the Administratin t cntinue t charge ahead and take executive actin n a whle hst f issues, but dn t be 4

5 surprised if they scale back the scpe and breadth f sme f their prpsals due t the strng beating they tk at the plls. CAN OBAMA TAKE A PAGE FROM THE CLINTON PLAYBOOK? President Clintn als tk a big lss at the plls during midterm electins, but after taking sme time t recver, he prved t be a master at dealing with a Cngress held by the ppsing party. Can President Obama? The Penn Hill Grup Take. At this pint, it is uncertain. T date, his advisrs have nt sught t wrk with Cngress, and he is likely t face difficulties with bth Republicans and Demcrats wh are unhappy with his Cngressinal utreach effrts as he heads int his last tw years in ffice. PRIORITIES, PRIORITIES, PRIORITIES During the last electin cycle, the fcus f bth sides in cntested electins was n hw different each candidate was frm the President t varying degrees, rather than a fcus n a plicy agenda ging frward. In the cming mnths, the newly-empwered GOP leadership will have t make sme tugh decisins n which issues t make pririties. Fr the educatin cmmunity, the questin is: where d we fit in? The Penn Hill Grup Take. We dubt that educatin issues will be n the tp f the new Cngressinal agenda, but they culd find their way nt a secnd tier f issues. In terms f reauthrizatin bills, it bils dwn t Senate actin. The Huse is pised t mve n an ESEA reauthrizatin that mre r less starts frm where they left ff after passing a bill last year. They culd als mve an HEA reauthrizatin befre the year is dne. But can the Senate? It seems that the nly way either reauthrizatin is passed beynd the cmmittee stage if they remain the secnd tier issues we think they are t the leadership is if they are part f a cmprehensive, bipartisan agreement that the Administratin and key utside grups are at least smewhat party t. That being the case, we believe educatin issues will certainly cme up as part f ther bills, especially apprpriatins (r in the still smewhat unlikely event f a recnciliatin bill). Educating funding, and riders dealing with issues ranging frm the gainful emplyment regulatin t the cllege ratings system t Cmmn Cre State Standards and t privacy in K- 12 may well first be addressed in that cntext befre any reauthrizatin bill makes it t the finish line. LEADERSHIP IN THE ADMINISTRATION, CONGRESS, AND HOUSE AND SENATE COMMITTEES The President and the Administratin In an Administratin mre willing t push the limits f executive authrity in educatin plicy than any in histry, the questins f wh fills key plicy slts at the White Huse and the Educatin Department, will have a critical impact n educatin plicy thrughut the natin. Current Secretary Arne Duncan is likely t remain as Secretary f Educatin thrughut the final tw years f the Obama Administratin, and it is als likely that Labr Secretary Thmas Perez will remain in place if he is nt tapped t be the next U.S. Attrney General. Hwever, many f the key psitins immediately belw the Secretary and ther 5

6 psitins impacting educatin plicy have already begun t change hands. Ted Mitchell has taken ver in the tp higher educatin psitin as Under Secretary after Martha Kanter left at the beginning f Jim Sheltn, Deputy Secretary f Educatin, will step dwn frm his psitin at the end f Institute f Educatin Sciences Directr Jhn Eastn stepped dwn frm his psitin in the fall f this year. Rbert Grdn has been nminated by the Administratin t serve as Assistant Secretary fr Planning, Evaluatin and Plicy Develpment and Ericka Miller has been nminated as Assistant Secretary fr Pstsecndary Educatin, althugh neither has been cnfirmed by the Senate. Grdn has already started wrking at the Department in an advisry rle, and Miller is expected t fllw suit in the cming weeks. Cngress Leadership Speaker f the Huse Jhn Behner (R-OH) is expected t retain his psitin after winning his re-electin race. Rep. Eric Cantr (R-VA), the Majrity Leader fr much f the 113 th Cngress, lst his primary race earlier this year and then retired. Rep. Kevin McCarthy (R-CA) was chsen as the new Majrity Leader and is als expected t retain his psitin. We expect the Huse Republican Cnference and Demcratic Caucus t chse their leadership teams smetime this mnth. Nancy Pelsi (D-CA) and Steny Hyer (D-MD) are likely t remain in their current psitins f Minrity Leader and Minrity Whip respectively. On the Senate side, Sen. Mitch McCnnell (R-KY) is expected t take ver as Majrity Leader, and leadership electins fr Republicans may happen as early as next week. Sen. Harry Reid (D-NV) is expected t be elected Minrity Leader at the start f the new Cngress. Cmmittees There will be a significant amunt f change n the Cmmittees that deal with educatin and wrkfrce issues, the full extent f which we will nt knw until early next year. We expect the Huse cmmittee leadership selectin prcess t begin this mnth. The Senate cmmittee psts will be selected later this year and/r early next year. Huse Educatin Cmmittee On the Huse Cmmittee n Educatin and the Wrkfrce, Rep. Jhn Kline (R-MN) will likely cntinue as Chairman, althugh he will need a waiver frm Huse Republican Cnference Rules as he is running up against his term limit fr leadership f that cmmittee. Current Senir Demcrat Gerge Miller (D-CA) is retiring at the end f the year and Rep. Bbby Sctt (D- VA) is expected t take ver as Ranking Member. If the make-up f the cmmittee remains the same, the cmmittee will likely need t fill tw Republican seats and five Demcratic seats in the new Cngress. Tw Republican Members f the cmmittee are retiring (Reps. Buck McKen (R-CA) and Thmas Petri (R-WI)), but the remainder f Republican Members were reelected. The cmmittee will lse five Demcrats: Senir Demcrat Gerge Miller (D-CA), Rep. Carlyn McCarthy (D-NY), and Rep. Rush Hlt (D-NJ) are retiring. Rep. Jhn Tierney (D-MA) lst his primary electin earlier this year, and Rep. Tim Bishp (D-NY) lst during the general electin. It is imprtant t nte that with the larger GOP majrity in the Huse in the 114 th Cngress, the cmmittee 6

7 ratis culd change with the number f Demcrats shrinking and the number f Republicans n the cmmittee increasing. While we d nt knw fr certain wh will serve as subcmmittee chairs, we expect Rep. Virginia Fxx (R-NC) t stay as chair f the Subcmmittee n Higher Educatin and Wrkfrce Training, The ther current chairs are Rep. Tdd Rkita (R-IN) as chair f the Subcmmittee n Early Childhd, Elementary, and Secndary Educatin; Rep. Tim Walberg (R-MI) as chair f the Subcmmittee n Wrkfrce Prtectins, and Rep. David Re (R-TN) as chair f the Subcmmittee n Health, Emplyment, Labr, and Pensins, but there is a pssibility f sme change in these three chair psitins. The lineup fr Ranking Members culd change: Rep. David Lebsack (D-IA) is current Ranking Member fr early childhd and Rep. Ruben Hinjsa (D-TX) is Ranking Member fr the higher educatin subcmmittee, but current Ranking Members Rep. Je Curtney (D-CT) (Wrkfrce Prtectins) and Rep. Jhn Tierney (D-MA) (Health, Emplyment, Labr, and Pensins) will bth n lnger serve n the Cmmittee. Belw are the electin utcmes f the current Members f the Huse Educatin and the Wrkfrce Cmmittee: Member Party State Status Kline, Jhn R MN Re-elected Petri, Thmas E. R WI Retiring McKen, Buck R CA Retiring Wilsn, Je R SC Re-elected Fxx, Virginia R NC Re-elected Price, Tm R GA Re-elected Marchant, Kenny R TX Re-elected Hunter, Duncan R CA Re-elected Re, David P. R TN Re-elected Thmpsn, Glenn R PA Re-elected Walberg, Tim R MI Re-elected Salmn, Matt R AZ Re-elected Guthrie, Brett R KY Re-elected DesJarlais, Sctt R TN Re-elected Rkita, Tdd R IN Re-elected Bucshn, Larry R IN Re-elected Barletta, Lu R PA Re-elected Heck, Jseph R NV Re-elected Kelly, Mike R PA Re-elected Brks, Susan R IN Re-elected Hudsn, Richard R NC Re-elected Messer, Luke R IN Re-elected Byrne, Bradley R AL Re-elected 7

8 Member Party State Status Miller, Gerge D CA Retiring Sctt, Rbert C. D VA Re-elected Hinjsa, Ruben D TX Re-elected McCarthy, Carlyn D NY Retiring Tierney, Jhn F. D MA Lst primary electin Hlt, Rush D. D NJ Retiring Davis, Susan A. D CA Re-elected Grijalva, Raul M. D AZ Re-elected Bishp, Timthy H. D NY Lst electin Lebsack, Dave D IA Re-elected Curtney, Je D CT Re-elected Plis, Jared D CO Re-elected Sablan, Gregri D Del. MP Re-elected Wilsn, Frederica D FL Re-elected Bnamici, Suzanne D OR Re-elected Pcan, Mark D WA Re-elected Takan, Mark D CA Re-elected Huse Apprpriatins The biggest change n the Huse Apprpriatins Labr, Health and Human Services, and Educatin Subcmmittee is that current Chairman Jack Kingstn (R-GA) is retiring after this year, having lst a bid t represent Gergia in the Senate. Belw are the electin utcmes f the current Members f the Huse Labr/HHS/Educatin Apprpriatins Subcmmittee: Member Party State Status Kingstn, Jack R GA Retiring Wmack, Steve R AR Re-elected Fleischmann, Chuck R TN Re-elected Jyce, David R OH Re-elected Harris, Andy R MD Re-elected Rby, Martha R AL Re-elected Stewart, Chris R UT Re-elected DeLaur, Rsa D CT Re-elected Lwey, Nita D NY Re-elected Rybal-Allard, Lucille D CA Re-elected Lee, Barbara D CA Re-elected Hnda, Mike D CA Race still undecided Senate HELP Cmmittee The Senate educatin cmmittee will underg changes in the new Cngress. Current Chairman Tm Harkin (D-IA) is retiring after this year, and Sen. Patty Murray (D-WA) is expected t take n the Ranking 8

9 Member rle as the cmmittee switches t Republican cntrl. The make-up f the cmmittee culd als switch, with Republicans having mre seats n the cmmittee, and Demcrats lsing sme seats due t the switch in Senate cntrl. While it is expected that current Ranking Member Lamar Alexander (R-TN) will take ver as chairman f the cmmittee, it s imprtant t nte that Sen. Michael Enzi (R-WY) is eligible t becme chairman, althugh he may pass and allw Sen. Alexander t assume leadership f the cmmittee. Belw are the electin utcmes f the current Members f the Senate Health, Educatin, Labr and Pensins (HELP) Cmmittee: Member Party State Status Harkin, Tm D IA Retiring Mikulski, Barbara D MD * Murray, Patty D WA * Sanders, Bernard I VT * Casey, Rbert D PA * Hagan, Kay D NC Lst electin Franken, Al D MN Re-elected Bennet, Michael D CO * Whitehuse, Sheldn D RI * Baldwin, Tammy D WI * Murphy, Christpher D CT * Warren, Elizabeth D MA * Alexander, Lamar R TN Re-elected Enzi, Michael R WY Re-elected Burr, Richard R NC * Isaksn, Jhnny R GA * Paul, Rand R KY * Hatch, Orrin G. R UT * Rberts, Pat R KS Re-elected Murkwski, Lisa R AK * Kirk, Mark R IL * Sctt, Tim R SC Re-elected * N electin this cycle Senate Apprpriatins On the Senate Apprpriatins Cmmittee, current Chairman f the Subcmmittee n Labr/HHS/Educatin Tm Harkin (D-IA) is retiring and Sen. Patty Murray (D-WA) may take ver as Ranking Member as the cmmittee switches t Republican cntrl. Sen. Jerry Mran (R-KS), current Ranking Member, culd be the next chairman f the subcmmittee. 9

10 Belw are the electin utcmes f the current Members f the Senate Labr/HHS/Educatin Subcmmittee: Member Party State Status Harkin, Tm D IA Retiring Murray, Patty D WA * Landrieu, Mary D LA Race undecided: Dec. runff Durbin, Richard D IL Re-elected Reed, Jack D RI Re-elected Pryr, Mark D AR Lst electin Mikulski, Barbara D MD * Tester, Jn D MT * Shaheen, Jeanne D NH Re-elected Merkley, Jeff D OR Re-elected Mran, Jerry R KS * Shelby, Richard R AL * Alexander, Lamar R TN Re-elected Graham, Lindsay R SC Re-elected Kirk, Mark R IL * Jhanns, Mike R NE Retiring Bzman, Jhn R AR * * N electin this cycle STATUS OF APPROPRIATIONS AND EDUCATION LEGISLATION FY 2015 Apprpriatins Befre leaving fr the electins, Cngress passed, and President Obama signed int law, a cntinuing reslutin (CR) keeping the federal gvernment perating thrugh December 11 f this year. This was necessary as Cngress had nt passed any f the 12 annual apprpriatins bills. Cngress is still perating under the apprpriatins caps reached as part f the Murray/Ryan budget bill passed in January f this year. This bill set defense and nndefense discretinary spending caps fr FY 2014 and FY 2015, with the FY 2015 caps nly marginally higher than the FY 2014 limits. Unless Cngress seeks t change these caps, the verall level f spending fr these categries fr FY 2015 is set. Apprpriating spending abve these caps, unless designated as emergency spending r withut further changes t law, wuld trigger sequestratin by the Executive Branch. Cngress must determine hw and if 2015 apprpriatins will be finalized befre the end f the year. As briefly discussed at the beginning f this mem, ptins culd include: an mnibus apprpriatins bill that includes prgram by prgram funding levels fr all prgrams acrss all agencies f the gvernment; a CR extending the December 11 date f the existing reslutin fr a full year r shrter time perid; r 10

11 sme hybrid f these tw appraches, passing ne bill that prvides prgram by prgram apprpriatins levels fr sme agencies and funding ther agencies thrugh a CR fr ther agencies. One example f the hybrid apprach culd be t pass prgram by prgram apprpriatins levels fr Defense and Hmeland Security related functins while extending federal spending authrity thrugh a CR fr ther agencies. Based n the results f the electin, each f these scenaris are pssible. Current chairs f the Huse and Senate Apprpriatins Cmmittees (Rep. Rdgers (R-KY) and Sen. Mikulski (D- MD)) have bth stated publicly their gal is t pass an mnibus apprpriatins bill fr FY Hwever, as we stated at the beginning f this mem, the mst likely utcme is a shrt-term CR that puts ff a final FY 2015 determinatin f spending levels until smetime early next year. Legislatin Belw is a review f key educatin and jb training legislatin that may be cnsidered during the 114 th Cngress: Authrizatin Expiratin Legislatin Wrkfrce Investment Act (WIA) FY 2020 Adult Educatin and Family Literacy Act Rehabilitatin Act FY 2016 Museum and Library Services Act FY 2014 Higher Educatin Act FY 2013 America COMPETES Reauthrizatin Act f 2010 Carl D. Perkins Career and Technical Educatin Act FY 2012 Head Start Act Native American Prgrams Act Older Americans Act FY 2011 Title II f the Higher Educatin Act (nte: rest f HEA expires in FY 2014) Assistive Technlgy Act Child Nutritin Act, which includes the Richard B. Russell Natinal Schl Lunch Act FY 2010 Individuals with Disabilities Educatin Act (IDEA) (nte: Part B Grants t States is permanently authrized) Welfare Refrm, thrugh the Temprary Assistance fr Needy Families (TANF) FY 2009 Special Olympics Sprt and Empwerment Act Abandned Infants Assistance Act Child Abuse Preventin and Treatment Act (CAPTA) FY 2008 Educatin Sciences Refrm Act (Institute fr Educatin Sciences) Family Vilence Preventin and Services Act Natinal Assessment f Educatinal Prgress (NAEP) Authrizatin Act Develpmental Disabilities Assistance and Bill f Rights Act FY 2007 Elementary and Secndary Educatin Act (ESEA) NCLB Juvenile Justice and Delinquency Preventin Act 11

12 FY 2003 Cmmunity Services Blck Grant (CSBG) Act FY 2002 Child Care and Develpment Blck Grant (CCDBG) Act FY 1996 Natinal Envirnmental Educatin Act (NEEA) FY 1993 Natinal Fundatin n the Arts and Humanities Act ELEMENTARY AND SECONDARY EDUCATION ACT (ESEA) ESEA, which was passed in 1965 as a part f the War n Pverty, was last authrized in 2001, when Cngress passed the N Child Left Behind Act (NCLB). The Huse passed H.R. 5, the Student Success Act (a cmprehensive reauthrizatin f ESEA) by a vte f n July 19, The Huse passed H.R. 10, the Success and Opprtunity thrugh Quality Charter Schls Act by a vte f n May 9, This bill essentially pulled the charter prvisins frm H.R. 5 in an attempt t at least mve frward n an aspect f that legislatin which has brad bi-partisan supprt. A similar stand-alne charter schls bill was intrduced in the Senate (S.2304, the Expanding Opprtunity thrugh Quality Charter Schls Act), but n actin has been taken t date by the Senate HELP Cmmittee. The Senate HELP Cmmittee reprted S. 1094, the Strengthening America s Schls Act (a cmprehensive reauthrizatin f ESEA) by a vte f n June 12, Outlk fr ESEA Despite the prgress f reauthrizatin early in this Cngress, there has been virtually n discussin f realistically mving legislatin during this past year. We expect Sen. Alexander, in his new rle as Chair f the Senate HELP Cmmittee t make a strng initial push t mve an ESEA reauthrizatin bill, largely mdeled ff f his ESEA legislatin ffered during Senate HELP cmmittee cnsideratin f S last year. We als expect a strng push in the Huse early in the next Cngress t at least revisit their bill. T the extent the Obama Administratin cntinues t sit back n reauthrizatin and instead fcus n ESEA flexibility waivers, the challenge will be all the mre difficult. HIGHER EDUCATION ACT (HEA) The authrizatin fr HEA technically expires this year (except fr the teacher preparatin prvisins under Title II which expired in FY 2011). Hwever, the lack f authrizatin des nt impact funding. Chairman Harkin (D-IA) f the Senate HELP Cmmittee and Chairman Kline (R-MN) f the Huse Educatin and the Wrkfrce Cmmittee cntinue t express strng interest in at least intrducing HEA reauthrizatin legislatin this Cngress. While t date neither the Huse nr Senate has intrduced a reauthrizatin prpsal, bth have begun t draft bills which in the case f Chairman Harkin, has included a detailed discussin draft released in August. The draft tuches n a range f issues including access, affrdability and accuntability, as well as a fcus n increasing the scrutiny f fr-prfit institutins f higher educatin. 12

13 This year, a bipartisan grup f Senatrs led by Sen. Alexander (R-TN), the Ranking Member f the HELP cmmittee, and Sen. Bennet (D-CO), established a taskfrce n higher educatin t lk at regulatry burdens and t prduce recmmendatins fr reauthrizatin. This effrt is being staffed thrugh the American Cuncil n Educatin (ACE) and includes a wide variety f higher educatin representatives. They are expected t release a reprt at the end f this year. Meanwhile, the U.S. Department f Educatin (ED) has cntinued t mve ahead t expand higher educatin regulatins. Gainful Emplyment On Octber 31, ED released its final gainful emplyment regulatins, impacting fr-prfit institutins as well as ther prgrams at nnprfit and public institutins. Prgram Integrity On May 20, 2014, ED cmpleted a series f negtiated rulemaking sessins n a wide range f issues, including cash management f Title IV funds (including the use f debit cards), state authrizatin fr distance educatin prgrams, the definitin f adverse credit under Parent PLUS lans, and clck-t-credit-hur cnversin. Cnsensus n these issues was nt reached, which means ED can mve frward separately and will likely issue NPRM s n a least ne f these issues later this year fr cmment. The Department did publish final regulatin n Parent PLUS lans in Octber with a tentative March 2015 implementatin date. Cllege Rating System Last year, President Obama released a series f prpsals related t higher educatin, including a prpsal t use utcmes measures t guide federal student aid awards and funding t clleges. This prpsal is predicated n the develpment f a new cllege screcard/rating system which was t be unveiled this spring. Hwever, ED annunced that initial details f the plan will nt be released until later this year. Many in Cngress have been skeptical f the prpsal, as have institutins cncerned with hw the ED wuld cnstruct a fair measure f utcmes t drive funding. First in the Wrld The President was successful in securing a new surce f funding at ED t prmte innvatin in higher educatin. The recently pened First in the Wrld Cmpetitin prvides $75 millin in grants fcused n cllege access and cmpletin. Outlk fr HEA While time has essentially run ut fr this Cngress t mve frward n a HEA reauthrizatin, the current effrts and wrk that will cntinue ver the next several mnths will likely result in actin early next year. Chairman Harkin s retirement will likely decrease the intensity f the debate n fr-prfit institutins. EARLY CHILDHOOD EDUCATION President Obama s FY 2015 budget request wuld prvide: Preschl fr All $1.3 billin in mandatry funding fr the Preschl fr All prgram t supprt grants t states fr the implementatin f high-quality preschl prgrams that 13

14 are aligned with kindergarten-thrugh-12th-grade elementary and secndary educatin systems. Funds wuld be used t imprve utcmes fr children thrugh enhancing the quality f existing preschl prgrams and expanding the number and availability f high-quality preschl prgrams. Preschl Develpment Grants $500 millin fr the Preschl Develpment Grants prgram t supprt grants t States t carry ut the activities needed t ensure that every State willing t cmmit t expanding preschl access has the high-quality prgrams required t successfully serve fur-year-ld children. Preschl Develpment Grants wuld address fundamental needs like facility creatin and wrkfrce develpment, as well as quality imprvement effrts and the scale-up f prven preschl mdels. The Cnslidated Apprpriatins Act f 2014 included a dwn payment n the President's visin t expand early childhd educatin by prviding $250 millin fr Preschl Develpment Grants. Cngressinal Actin Sen. Harkin (D-IA) and Rep. Miller (D-CA) have intrduced legislatin (the Strng Start fr America's Children Act) that is based n the President s budget request and that wuld prvide funding supprt t states fr children frm birth thrugh age fur, with an emphasis n three- and fur-year-lds. The Senate HELP Cmmittee reprted S. 1697, the Strng Start fr America's Children Act, n May 14, 2014 by a vte Outlk fr Early Childhd Educatin Prgramming While there is n chance that the Strng Start fr America s Children Act will be passed and signed int law this Cngress, there will likely be funding prvided t the Department f Educatin fr FY 2015 fr the Preschl Develpment Grants prgram. (Fr FY 2014, $250 millin was prvided fr the prgram thrugh apprpriatins with state applicatins due by Octber 14, 2014). EDUCATION SCIENCES REFORM ACT (ESRA) ESRA authrizes the principal educatin research, statistics, and evaluatin activities f the Department f Educatin thrugh the Institute f Educatin Sciences (IES). The Huse Cmmittee n Educatin and the Wrkfrce crafted a bipartisan bill (H.R. 4366, the Strengthening Educatin thrugh Research Act) earlier this year which successfully passed the Huse by vice vte n May 8, The Senate Cmmittee n Health, Educatin, Labr and Pensins passed their wn versin f H.R in September. Outlk fr ESRA ESRA reauthrizatin is ne f the tw educatin plicy bills that have a slid chance f being signed int law during the lame-duck sessin. 14

15 CARL D. PERKINS CAREER AND TECHNICAL EDUCATION ACT (CTE) CTE authrizes activities related t strengthening and imprving access t career and technical educatin prgrams administered by secndary schls, cmmunity clleges and ther institutins. The Administratin has released a blueprint fr a reauthrized CTE that wuld transfrm career and technical educatin and usher in a new era f rigrus, relevant, and resultsdriven CTE prgrams. Here are sme f the main principles f the blueprint: Cmpetitive grants The existing structure f frmula grants frm the Department f Educatin t states wuld be maintained, but the distributin f funds t the lcal level wuld shift frm frmula t cmpetitive grants. Jint Applicatins Secndary schl districts and cmmunity clleges wuld n lnger receive separate funds; instead, the cmpetitive grants wuld be made t jint lcal educatinal agency (LEA)-institutin f higher educatin (IHE) applicants fr prgrams that span secndary and pstsecndary educatin. Standardized Perfrmance Indicatrs Perfrmance data elements and definitins wuld be standardized t prvide greater state-by-state cmparisns. In-Demand Occupatins States and lcalities wuld be required t determine what in-demand ccupatins exist in their area and use CTE funds t fcus n these ccupatins. Innvatin Pt A prtin f CTE funding wuld be withheld at the natinal level t perate an initiative that wuld be similar t the Investing in Innvatin prgram. Secndary schl districts, cmmunity clleges and nnprfits wuld be eligible t cmpete fr funding. Outlk fr CTE This legislatin is generally less partisan than ther bills under the jurisdictin f the Huse and Senate educatin cmmittees. The current authrizatin fr CTE ended in The Huse and Senate Cmmittees have cntinued t express interest in crafting a reauthrizatin bill during this Cngress. N final actin n CTE is expected in the lame-duck sessin. COMPETES ACT The America Creating Opprtunities t Meaningfully Prmte Excellence in Technlgy, Educatin, and Science Act (COMPETES Act) cvers a wide range f activities under varius federal agencies and ffices that supprt prgrams and activities in physical sciences and engineering research and in science, technlgy, engineering, and mathematics (STEM) educatin, amng ther things. The Huse Science Cmmittee has crafted its versin f the COMPETES Act reauthrizatin, (renamed the Frntiers in Innvatin, Research, Science, and Technlgy (FIRST) Act f 2014). At the end f May, the Cmmittee marked up the legislatin alng party lines, with the hpe f mving it t the Huse Flr in the near future. The Senate Cmmittee n Cmmerce, Science and Transprtatin has held hearings t discuss issues surrunding reauthrizatin but n stand-alne reauthrizatin bill has been intrduced t date. 15