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fre: DC College Access
Earlier this week, we thought that H.R. 974 -- District of Columbia College Access Act could come
up in the Senate with attempts to bring it up on unanimous consent. The latest intelligence from
the Hill is that, in the wake of the DC appropriations veto, there is a moratorium on DC legislation
in the Senate. So, at this point, we no longer think the bill will be taken up in the Senate this week.
But, nothing certain.
In any event, we would like to have this SAP cleared in case the bill is put back on the fast track
and need to send the SAP to the Hill quickly. Appreciate your sign-off/comments by COB.
Brod: If you have any updates on timing it would be much appreciated. Thank you!
DRAFT -- NOT FOR DISTRIBUTION
September 30, 1999
(Senate)
H.R. 974 - District of Columbia College Access Act
(Rep. Davis (R) VA and 13 cosponsors)
The Administration supports Senate passage of H.R. 974, as reported by the Senate Committee
on Governmental Affairs. H.R. 974 would increase access to postsecondary education for
residents of the District of Columbia (D.C.). While the Administration is extremely pleased with
the strong bipartisan spirit in which H.R. 974 has been developed, the Administration continues
to be concerned about the phase-in of student eligibility, and urges the Senate to amend H.R. 974
to address this concern. The Administration understands that the bill may be amended to
alleviate this and other concerns.
The President's FY 2000 Budget includes $17 million to improve access to postsecondary
education for D.C. residents. Currently, residents of all 50 states are served by multiple public
colleges or universities, while D.C. residents are not. This unduly restricts their postsecondary
opportunities. The Administration is pleased that H.R. 974 would: (1) allow the Federal
Government to pay the difference between in-State and out-of-State tuition at public colleges and
universities in Maryland and Virginia (and in other States under certain circumstances) on behalf
of qualified D.C. residents; (2) provide grants to D.C. residents who choose to attend private
colleges and universities in the Washington, D.C. area; and (3) authorize financial support to the
University of the District of Columbia (UDC).
The Administration is concerned about the provision of the bill as reported that would restrict its
benefits to only those students who graduated from secondary school or received the equivalent
of a secondary school diploma on or after January 1, 1999. The Administration understands that
the bill may be amended to provide benefits to students who graduated on or after January 1,
1998. The Administration urges adoption of this amendment. Limiting benefits to graduates
after January 1, 1999, would be problematic for two reasons:
abIt would unnecessarily limit eligibility. The Administration anticipates that resources
will be available to fully fund the benefits to students who graduated before January 1, 1999, and
could help many D.C. residents currently in college obtain their degrees. A lack of financial
resources is a leading reason why many students who enroll in college do not complete their
degree programs.
abIt could distort the program and make it prohibitively expensive in the future. Because
so few students would be initially eligible under the bill, the low initial program costs could
result in pressure to prematurely expand the program to include grants for students to attend
institutions in States other than Maryland and Virginia. Many more students would be eligible to
receive these grants if the geographic scope of the program were expanded, and serious funding
constraints and reduced benefits would be likely if the program were expanded before student
eligibility is fully phased in. It is very important that students who begin attending
postsecondary institutions outside of D.C. be assured of continuing, unreduced benefits.
The Administration is pleased that the reported version of H.R. 974 includes the authority for the
Mayor of the District of Columbia to, in the event of insufficient appropriations, adjust the
amount of tuition payments based on the financial need of eligible students. The Administration
would prefer that H.R. 974 ensure that Federal resources are provided to those students with the
greatest need for financial assistance by including some form of priority funding mechanism.
The Administration notes, however, that the provision in the reported version of H.R. 974 is a
step in the right direction. The Administration understands that the bill may be amended to
authorize the Mayor, when administering the program, to give priority to students with the
greatest financial need. The Administration urges adoption of this amendment.
(Do Not Distribute Outside Executive Office of the President)
This Statement of Administration Policy was developed by the Legislative Reference Division
(Connie Bowers) in consultation with EIML (Upshaw/Kron) and the Department of Education
(Templeman). The Departments of Justice (Taylor), Interior (Cardinalli), and Treasury
(Dorsey), OPD (Rotherham/Little), DO (Jeffers), TCJS (Rosenbaum), and CEA (Lumsdaine)
either concur in or have no objection to the proposed position.
OMB/LA Clearance:
The Administration did not take a position on H.R. 974 in the House. On June 24, 1999, the
Department of Education (ED) testified before the Senate Committee on Government Reform on
House-passed H.R. 974. The testimony stated that the Administration generally supports H.R.
974, but has concerns it would address in the Senate to: (1) limit tuition subsidies to D.C.
residents attending public institutions in Maryland and Virginia, rather than to any State; (2)
ensure resources are targeted to students with the greatest financial need, through a priority
funding mechanism; and (3) clarify accountability for Federal funds.
Summary of H.R. 974, as Passed the House
The House-passed version of H.R. 974 would authorize appropriations of such sums as may be
necessary for FY 2000 and each of the next five fiscal years to establish the "District of
Columbia College Access Fund" to fund scholarships for qualified D.C. residents to attend
public universities anywhere in the United States. The Fund would be administered by the
Mayor of D.C. in consultation with the Secretary of Education. Under H.R. 974, the D.C.
Government would use monies from the Fund to reimburse these institutions for the difference
between in-state and out-of-state tuition for D.C. residents who are admitted to and attend those
schools. H.R. 974 caps the amount of the scholarship to $10,000 per applicant per academic
year.
H.R. 974 would also: (1) allow the D.C. Government to provide qualified residents with a grant
of up to $3,000 per academic year to pay tuition costs at private colleges and universities located
within D.C., Maryland, and Virginia, and (2) authorize appropriations of such sums as may be
necessary for FY 2000 and the next five fiscal years to "enhance educational opportunities" at
UDC. In order to receive assistance, a student must: (1) have been a D.C. resident for the 12
consecutive months preceding the academic year for which the scholarship is sought; (2) begin
undergraduate studies within three years of high school graduation; and (3) be maintaining
satsifactory academic progress, in the case of students already enrolled in a higher education
institution.
Under H.R. 974, the Mayor of D.C. would be authorized to: (1) invest a portion of the monies
in the Fund; (2) use up to 10 percent of the Fund's balance per fiscal year to administer the Fund;
and (3) contract with a non-governmental agency to administer the scholarship/grant program
and the Fund.
Senate Committee Substitute
On September 9, 1999, the Senate Committee on Government Reform reported an amended
version of House-passed H.R. 974. The Committee adopted a substitute amendment offered by
Senator Voinovich, as modified by amendments offered by Senator Durbin. The Administration
supported these amendments. The most significant would:
abProvide the Mayor with alternatives to a universal ratable reduction in the event of a
funding shortfall. It would provide that if funds are insufficient to fully fund grants, the Mayor
shall first ratably reduce awards for students who have not previously received awards. Awards
would be ratably reduced for all students only if funds remain insufficient after the first step.
The Mayor would also have the option to adjust the amount of the reduction based on the
financial need of the eligible students.
abModify the provision of the House bill that would authorize benefits to D.C. residents
attending public universities anywhere in the United States, to limit application to: (1) public
institutions in Maryland and Virginia, or (2) public institutions in other States only if the Mayor
of D.C. takes certain actions. He must: (1) determine that eligible students are experiencing
difficulty in gaining admission to public institutions in Maryland and Virginia; (2) consult with
the House Committee on Government Reform and Senate Committee on Governmental Affairs
regarding expanding the program; and (3) take into consideration projected cost estimates of the
expansion provided by the Congressional Budget Office.
abLimit grants available to students attending D.C.-area private institutions to $2,500,
rather than $3,000.
abPlace a $12,500, rather than $10,000, cap on the scholarship amount available to each
applicant per academic year.
abAllow the Mayor to move funding between the public- and private- school components
of the program depending upon demand.
abReduce from ten percent to seven percent, the maximum portion of the Fund's balance
that the Mayor can use to administer the program.
Senate Floor Manager's Amendment
The Administration has been working with Senators to address its concerns. It is expected that
the bill may be amended to make two significant changes to the Committee-reported version that
would mitigate the Administration's concerns. These changes would: (1) move the eligibility
date back one year to students who graduated after January 1, 1998, rather than 1999; and (2)
authorize the Mayor to establish a means-test for the entire program.
Pay-As-You-Go Scoring
Per EMIL (Upshaw/Kron ), H.R. 974 does not affect direct spending or receipts; therefore, it is
not subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act of 1990.
LEGISLATIVE REFERENCE DIVISION DRAFT
September 29, 1999 - 4:30 p.m.
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