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TG's Legislative Report

March 14, 2005

Congressional Update

The House and Senate Budget Committees have adopted their FY 2006 Budget Resolutions. The Resolutions will be combined into a single document which will be the "blueprint" that the House and Senate Appropriations Committees will use in setting specific spending levels for federal programs within the 13 individual appropriations bills.

The House Resolution calls for total FY 2006 spending of $2.5 trillion, $843 billion in discretionary spending ($419.5 billion for Defense and $423.5 for non-Defense), and $106 billion in selected tax reductions through 2010. The Senate Resolution calls for spending of $2.6 trillion, $843 billion in discretionary spending ($439 for Defense and $404.5 for non-Defense), and $70.2 billion in selected tax cuts through 2010.

Both Resolutions include $50 billion for FY 2006 spending on the "war on terror".

This year the House and Senate Budget Resolutions include Reconciliation Instructions. (See below for an explanation of the reconciliation process.)

Reconciliation involves the two Budget Committees setting a gross targeted savings to be apportioned among the various authorizing committees to be gained by the authorizing committees developing legislation to amend the laws under their jurisdiction in ways that will achieve each committee's assigned savings goal. This year, the Reconciliation Instructions in the House Budget Committee's Resolution sets a total savings target of $68.6 billion over five years. The Education and Workforce's portion of this savings target is $21.4 billion over five years and $2.1 billion for FY 2006.

The Senate Budget Committee's Reconciliation Instructions include a savings of $32 billion over a five year period. The Health, Education, Labor, and Pensions (HELP) Committee portion of this target is $8.6 billion over a five year period, and $2.2 billion.

The Senate resolution proposes to increase Pell Grants enough to retire the accumulated $4.3 billion shortfall and to increase the maximum annual grant to $4,150 in FY 2006, includes a set aide for anticipated increased costs associated with the reauthorization of the Higher Education Act, including a new loan forgiveness provision $4,000 per year) for Pell recipients who graduate from college in four years.

To achieve its targeted savings, the House Education and Workforce Committee and the Senate HELP Committee have ample room to maneuver when considering estimated savings already put forward by the Office of Management and Budget and the Congressional Budget Office.

For example:

The Administration, while proposing the Pell Grant program be sufficiently funded over the next five years to achieve a $100 annual increase in the annual maximum grant in order to have a maximum grant of $4,550 by 2010 and to retire the $4.3 billion shortfall in the program, is proposing estimated savings of $19 billion over a ten year period from reforms in the Federal Family Education Loan Program (FFELP).

The Administration's budget submission proposes to abolish the Perkins Loan, GEAR UP and TRIO Upward Bound and Talent Search programs to achieve an additional savings, and to hold the other Title IV student aid programs to a maximum 2 percent increase over current year appropriations.

The Administration's FY 2006 appropriations submission can be accessed at www.omb.gov.

The Congressional Budget Office's annual Budget Options report to the Congress released this month identifies $31.5 billion in potential savings over ten years from the student loan programs to be gained from changes targeted at borrowers and FFELP lenders ($2.billion from repealing the 9.5 percent guaranteed yield on FFELP loans, $7.7 billion from excluding access to subsidized loans for graduate students, $2.9 billion from raising the borrower interest rate, and $18.9 billion from repealing the guaranteed interest rate floor for FFELP lenders.

CBO Budget Options can be accessed at www.cbo.gov.

The education options begin on page 12.

The House and Senate Budget Resolutions and support documents are available at www.house.gov/budget/ and www.senate.gov/~budget/republican/.

Higher education related legislation of interest filed during the First Session of the 109th Congress. Congressional legislation can be accessed at thomas.loc.gov.

HR 507 — College Access and Opportunity Act of 2005 (Replaced by HR 609)
This bill is the initial House Republicans' Higher Education Reauthorization bill to be introduced during the 109th Congress. It is, essentially, a refilled HR 4283 from the 108th Congress, which had the same title (with the exception of the year).

Among the bill's provisions, HR 507 proposes to:

  • revise the definition of higher education institution that brings proprietary schools under the definition;
  • repeal provisions that apply to proprietary schools;
  • move all student loans to a variable interest rate;
  • reduce student loan origination fees, increase student loan annual limits;
  • reauthorize and amend the loan guaranty VFA provision by repealing inducement waiver provision;
  • revise the campus-based allocation formula;
  • reinstate student loan provisions for low default schools to allow quicker disbursement of loan funds to students;
  • increase Pell Grant funding;
  • strengthen funding for Title III and Title V institutions;
  • increase accountability, transparency, and access to cost and consumer information; and
  • expand teacher loan forgiveness programs.

HR 508 — The FED UP Higher Education Technical Amendments Act.
This bill was filed as HR 12 during the 108th Congress and HR 4866 during the 107th Congress. Among the bill's provisions, it proposes to extend the provisions concerning exemptions from the 30 day delayed disbursements of student loan funds to first time borrowers and multiple disbursements of loan funds for low default schools; clarifies return of Title IV fund regulations; allow student loan forbearances to be requested in writing.

HR 509 — International Studies in Higher Education Act.
This bill is HR 3077 filed during the 108th Congress. It proposes to reauthorize Title VI of the HEA and establishes a program to support and promote international studies for students who pursue careers in international relations. HR 3077 was passed by the House last year.

HR 510 — Graduate Opportunities in Higher Education Act.
This bill was filed during the 108th Congress as HR 3076 and was passed by the House. The bill proposes to reauthorize Title VII of the HEA and adds a new provision that promotes graduate teacher education programs in K-12 shortage areas.

HR 511 — Pell Grant Plus Act.
This bill was introduced last year as HR 3894. The bill proposes to award an additional Pell Grant of $1,000 for two years to Pell recipients who graduate from high school with a postsecondary education preparatory diploma.

HR 555 — School As Lender Reform Act.
This bill proposes to amend and clarify the school as lender program authorized under Section 435(d)(2) of the HEA, to require revenues generated to a participating institution are to be used to supplement need based grants already in existence; that contracts between schools and lenders by awarded through competitive bidding; and that participating schools offer lower amounts loan aid to their student aid recipients.

HR 609 — College Access and Opportunity Act of 2005.
Substitute for HR 507. HR 609 differs from HR 507 with respect to the Pell Grant provision.

HR 625
This bill proposes to amend the IRS Code to prohibit the use of Pell Grant and SEOG as offsets to the Hope Scholarship Tax credit.

HR 670 — Teacher Recruitment and Retention Act of 2005.
This bill proposes to make the student loan forgiveness increase $17,500 included in the last two appropriations bills permanent.

HR 1009
This bill proposes to allow student loan borrowers who have consolidated their loans to reconsolidate with their choice of lender or consolidator.

HR 1030
This bill requires institutions to enter into agreements with for profit organizations for participation in the federal Work-Study program.

HR 1032
This bill proposes to extend the single disbursement for student loans for low default rate schools.

HR 1033
This bill proposes to eliminate the limitation of the deduction of student loan interest on income tax returns.

S. 9 — Lifetime of Education Opportunities Act of 2005.
This is a "sense of the senate" Republican omnibus education bill that includes HEA reauthorization provisions. It is, for the most part, legislation that expresses "the sense of the Senate" concerning a host of K-16 education issues. Included among these are that during the reauthorization process, the Senate should:

  • address "the rising costs of higher education";
  • "promote student academic preparation";
  • "encourage efforts to increase the availability of financial aid information";
  • "simplify the student aid application process";
  • "improve the level of accountability in the federal student aid programs";
  • "address the pell Grant shortfall";
  • "reduce the time to graduation";
  • "support stronger partnerships between businesses and higher education".

The bill includes "sense of the Senate" clauses concerning minority serving institutions.

S. 15 — Quality Education for All Act.
This is the Senate Democrat "sense of the senate" education bill that includes HEA reauthorization provisions. Among its higher education-related provisions, this bill proposes to:

  • reauthorize and increase the authorized appropriations for the TRIO and GEAR UP programs;
  • old certain Pell grant recipients harmless when the annual tax table updates are made;
  • a "sense of the Senate " provision that states the maximum annual Pell Grant for 2006-2007 should be $5,100;
  • to exempt payment of tuition and fees and increase student loan forgiveness (to be paid for through diversion of FFELP special allowance payments authorized under Sec. 438(b ) for students planning to teach mathematics, science, and special education;
  • expand the income tax deduction for higher education expenses.

S. 371 — The College Quality, Affordability, and Diversity Improvement Act of 2005.
This is the refilled S. 1793, the Senate Democrat's HEA reauthorization bill from the last Congress. Among the bill's provisions, the bill proposes to:

  • raise the annual authorized levels for the Pell Grant, TRIO, GEAR UP, LEAP, Title III and Title V programs;
  • increase the student loan forgiveness amounts for certain teachers;
  • increase the amount of earnings exempted from the need analysis process;
  • eliminates the student loan origination fee;
  • indexes each state's share of Pell Grant funding to the state's effort in providing student aid;
  • allows reconsolidation of student loans into the FDLP;
  • establishes a comprehensive program to increase recruitment, retention, and graduation of low income students; and
  • a competitive grant program to fund initiatives to reduce college costs.

S. 371 includes provisions from a bipartisan House companion bill — the Student Aid Reward (STAR) Act — originally introduced during the last congress as the Direct Loan Reward Act (HR 4370) that proposes to provide financial incentives to institutions if they switch participation from the FFELP to the FDLP. Any savings to the federal government resulting from the switch would be split 50/50 between the school and the federal government for use in other student financial aid. The Congressional Budget Office has estimated the bill could generate a federal savings of up to $12 billion over 10 years. The intent of the bill is that this savings would be used to double the appropriation for the Pell Grant program by almost 100 percent over this period.

S.Res. 8 — Expressing the sense of the Senate regarding the maximum Federal Pell Grant
This senate resolution states the sense of the senate is that the maximum Pell Grant for 2005-2006 should be $4,500 and for 2010-2011, $9,000.

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Legislative Update

TEXAS Grant Program FY 2006-2007 Appropriations
The initial FY 2006-2007 appropriations bill draft developed by the Legislative Budget Board includes a provision that proposes to decrease appropriations for the TEXAS Grant program from the current biennium's $326 million to $194.5 ($121 million in 2006 and $73.5 million for 2007). Proposed appropriations for the B-On Time Programs are $29 million in 2006 and $129.6 in 2007. This is an increase for this program because the $55 million for the current biennium is generated through refinancing of Coordinating Board student loan bonds. In speaking with legislative staff, the general opinion is that this proposed reduction and shifting of appropriations is the initial step toward a proposed phasing out the TEXAS Grant program by 2011.

Proposed appropriations for the TEG program total $127.8 million, down from $141.4 million for the current biennium.

Proposed appropriations for the College Work-Study program total $9.4 million, up from $8.8 million for the current biennium.

Proposed appropriations for the TEXAS Grant II program total $8.8 million, down from $9.8 million for the current biennium.

Proposed appropriations for the Teach for Texas program total $9 million, down from $10 million for the current biennium.

Proposed appropriations for the Early High School Graduation program total $8.6 million, up from $4.6 million for the current biennium.

Proposed total appropriations for student financial aid for the 2006-2007 biennium equals $509.5 million, down from $512 million for the current biennium.

The higher education part of the appropriations bill can be accessed at www.lbb.state.tx.us/Bill_79/1_Recommend/79-1_Art03-b_0105.pdf.

Student financial aid appropriations begin on page III-45.

The following higher education/student financial aid related bills have been prefiled for consideration during the Session.

Full background and details of each bill can be accessed at Texas Legislature Online (www.capitol.state.tx.us).

HB 19 — Relating to tuition and fee rebates for timely completion of degree programs offered by general academic teaching institutions.

HB 20 — Relating to a pilot program to provide reduced undergraduate tuition during a summer term or session at Texas A&M University.

HB 37 — Relating to automatic admission of undergraduate students to a general academic teaching institution that is a component institution of a university system. This bill proposes to allow students admitted under the state's "Top 10 percent" law to an institution that is a part of the University of Texas System, Texas A&M University System, Texas State University System, Texas Tech University System, University of Houston System, and University of North Texas System to be enrolled by the system at any component institution within that system.

HB 40 — Relating to tuition assistance granted to certain members of state military forces attending public or private institutions of higher education. This bill proposes to amend section 431.090 of the state government code to require that priority be given to members called to active duty during a national emergency.

HB 64 — Relating to the automatic admission to public institutions of higher education of certain undergraduate transfer students. This bill proposes to require public general academic institutions to automatically admit graduates of the state's public community colleges who receive a degree with a 3.0 GPA.

HB 133 — Relating to the award of academic credit to a student at an institution of higher education for the completion of certain military training. This bill proposes to allow certain public institutions of higher education to award credit toward completion of a degree program for certain military training that satisfies the institution's requirements for a course.

HB 328 — Relating to promoting the importance of higher education in public schools. This bill proposes to require each school district and charter school to designate one week during the year "Education. Go Get It Week, during which each student would receive information concerning higher education opportunities and benefits, student financial aid, academic requirements, automatic admission criteria, etc. Also, each venue would be required to have at least one speaker speak on the importance of obtaining a postsecondary education.

HB 397 — Relating to providing for a student who qualifies for automatic admission to an institution of higher education to maintain that status for transferring between institutions in certain circumstances. This bill proposes to allow a student who was granted automatic admission to an institution under the state's "top 10 percent law" to maintain that status if he/she transfers to another institution and has maintained at least a 3.25 GPA while satisfactorily progressing through a "core curriculum".

HB 503 — Relating to tuition and fee exemptions for certain military personnel and children of those personnel. This bill proposes to grant tuition and fee exemptions to all Texas residents who are honorably discharged veterans extending from the Spanish Civil war to any future "national emergency".

HB 609 — Relating to tuition rebate incentives for persons who complete certain degree and certificate programs without excessive credit hours. This bill proposes to allow tuition rebates to graduates of public community colleges who graduate with no more than three semester hours in excess of the sixty hours need for a degree.

HB 656 — Relating to the eligibility of a high school graduate for automatic admission to an institution of higher education. This bill proposes to replace the current "top 10 percent automatic admission law" with a requirement that beginning in 2008, automatic admission to a university will be contingent on a student completing the recommended or distinguished curriculum and have graduated in the top 10 percent of his/her high school class if graduating before 2009, and in the top 5 percent of his/her class and graduating in 2009 and beyond. The bill allows for exemptions for students who graduate from high schools that do not offer all of the recommended curriculum courses.

HB 1010 — Relating to the eligibility of children of certain military personnel to receive Texas B-On-Time loans. This bill proposes to make children of members of the armed forces who graduated from a high school operated by the defense department eligible for B On Time loans.

HB 1019/HB 2687/SB 1389/SB 1400/SB 1475/SB 1554 — Relating to the rates of tuition charged to students of institutions of higher education. These bills propose to limit the maximum rate of designated tuition charged under section 54.513 to that charged under section 54.011 of the state education code.

HB 1046 — Relating to the automatic admission on undergraduate students to general academic teaching institutions. This bill proposes to limit automatic admissions to public universities under the state's "top 10 percent" law to 50 percent of each entering freshman class.

HB 1060 — Relating to exempting certain persons in transitional living programs from payment of tuition and fees at public institutions of higher education. This bill proposes to grant tuition exemptions to persons living in transitional living youth projects operating under the Runaway and Homeless Youth Act.

HB 1170 — Relating to readmission to a public institution of higher education of students who withdraw to perform active military service. This bill proposes to allow eligible persons under section 51.9242 of the education code to be readmitted, within one year after release from the military, to a public higher education institution without reapplication.

HB 1172 — Relating to the tuition charged to resident undergraduate students of institutions of higher education for excess credit hours and to related formula funding. This bill proposes to amend section 54.068(a) and (c) of the state education code to allow a higher tuition to be charged to a student who exceeds the number of credit hours needed for a degree by 115 percent (rather than the current 45 hours).

HB 1214/SB 532 — Relating to tuition for a student registered in a public junior college. This bill proposes to allow public community colleges to set differential tuition rates by course.

HB 1407 — Relating to an exemption from tuition and fees at public institutions of higher education for children of certain employees of the Texas Forest Service with fire-fighting, rescue, or other special duties who are killed or disabled in the line of duty. This bill proposes to exempt from payment of tuition and fees children of disabled or deceased Forest Service firefighters killed in the line of duty.

HB 1450/HB 1521/ SB722 — Relating to the creation of the TexasNextStep grant program to pay tuition and required fees and textbook costs of certain students enrolled in two-year public institutions of higher education in this state. This bill proposes to offer to pay the tuition, required fees, and textbook costs for Texas residents attending a public community college and making satisfactory progress toward an associate degree.

HB 1482 — Relating to reports regarding the use of race, color, ethnicity, or national origin by public institutions of higher education in admissions. This bill proposes to require institutions that use any of the listed criteria in selecting applicants for enrollment, the institutions must submit an annual report detailing the process and use of the criteria to the legislature and Coordinating Board and make the report available to the general public.

HB 1527 — Relating to a breach of the security of a data system that includes another person's identifying information. This bills proposes to adding a chapter to the state's business and commerce code to require notification to a person whose identifying information has been accessed through a breach of a data system maintained by a person who owns or licenses data.

HB 2034 — Relating to an exemption from or refund of tuition and fees for certain lower-division students enrolled in a general academic teaching institution. This bill proposes to allow a high performing student to receive a refund of tuition and fees and be exempt from payment of tuition and fees during the freshman and sophomore years.

HB 2330 — Relating to the automatic admission of undergraduate students to general academic teaching institutions. This bill proposes to limit the state's "top 10 percent" beginning in 2009.

HB 2688 — Relating to a limitation on increases in the total amount of tuition and compulsory fees charged by public institutions of higher education. This bill proposes to set an annual maximum increase of 3 percent on the amount an public university may increase its tuition and fees.

SB 30 — Relating to tuition and fee exemptions for students contracting to graduate in a timely manner from public institutions of higher education. This bill proposes to allow a student to enter into a contract with the institution to receive an exemption for payment of tuition and fees in return for the student graduating within the prescribed time for the degree and maintaining a 15 credit hour per semester course load.

SB 31 — Relating to requiring students receiving certain financial aid at institutions of higher education to meet timely graduation and academic progress requirements. This bills proposes to substitute "30 hours" for the" 75 percent completion" satisfactory academic progress requirement in the TEXAS Grant and Tuition Equalization Grant programs after the freshman year, and apply the same requirements as those for the Texas B-On Time loan program.

SB 32 — Relating to certain special tuition rates at institutions of higher education. This bill proposes to allow institutions to charge lower tuition rates for summer sessions.

SB 33 — Relating to graduate stipends awarded as part of the Texas B-On Time loan program. This bill proposes to allow graduate students who received B-On Time loans as undergraduates to qualify for $2,5000 graduate stipends.

SB 34/HB2332 — Relating to the tuition rebate program for certain undergraduates at certain public institutions of higher education. This bill proposes to allow a tuition rebate for undergraduates who graduate within the prescribed time for their degree as required for a Texas B-On Time loan.

SB 71 — Relating to the prohibition of certain disclosures of a consumer's financial information. This bill is the same as SB 76, except it does not include the consumer "opt-in" provisions.

SB 76 — Relating to a consumer's option to prevent the disclosure of the consumer's financial information by a financial institution and providing a civil penalty. This bill proposes to prohibit financial institutions from sharing consumers non public financial information for marketing purposes with another party unless the consumer is first provided a written privacy notice stating that the financial institution may not disclose the information unless the consumer opts-in (agrees). Under the bill, financial institutions may share the information with affiliates, but the affiliates may not, in turn, share the information without going through the "opt-in" process.

SB 79 — Relating to tuition exemptions granted by public institutions of higher education to children of certain classroom teachers. This bill proposes to provide tuition exemptions to children of school teachers who are certified by the National Board of Professional Teaching Standards and have taught in a critical teaching shortage field shortage area for 10 years.

SB 80 — Relating to the percentage of certain tuition set aside to fund financial assistance for resident undergraduate and graduate students at public institutions of higher education. This bill proposes to increase the percentage of the set aside from public university tuition charged above $46 per credit hour from 20 percent to 40 percent for resident undergraduate student aid, and from 15 percent to 20 percent for resident graduate student aid.

SB 122 — Relating to the prevention and punishment of identity theft and to assistance to certain victims of identity theft; providing penalties. This bill proposes to authorize the state attorney general to prosecute individuals accused of identity theft under section 32.51 of the state penal code and businesses that are shown to have mishandled consumers' personal information resulting in the information being used by those engaged in identity theft.

SB 302 — Relating to reports of strategies for increasing minority participation in higher education. This bill proposes to require each institution of higher education to report annually to the Coordinating Board its strategies for increasing the number of undergraduate and graduate students from racial and ethnic groups that are underrepresented in the institution's student body. The bill states that "underrepresented" is defined as members of a racial or ethnic group within a student body that is less than that of Texas' population.

SB 320/HB 750 — Relating to admission to certain public institutions of higher education. This bill proposes to amend the state's statutory policy of granting automatic admission to public universities to graduates in the top 10 percent of high school graduating classes by including the top 10 percent factor with the other 18 criteria to be considered for admission.

SB 333 — Relating to the eligibility of a high school graduate for automatic admission to an institution of higher education. This bill requires a student seeking admission to an institution under the state's "top 10 percent automatic admission law" to have graduated with the recommended high school curriculum. The bill allows exemption from this new requirement for graduates from high schools that do not offer all of the recommended courses as long as the graduate took all of those offered.

SB 392 — Relating to the residency requirements for tuition and fee exemptions for certain military personnel and their dependents. This bill limits the exemptions authorized under section 54.203 of the education code to Texas residents.

SB 420/HB2274 — Relating to the continuation and functions of the Texas Guaranteed Student Loan Corporation (TG). This is TG's Sunset bill which proposes to "reauthorize" TG for 12 years to September 30, 2017.

SB 470 — Relating to the portion of designated tuition set aside to fund financial assistance for resident undergraduate and graduate students at public institutions of higher education. This bill proposes to require institutions that charge more than $46/SCR, but less than $66/SCR in tuition to set aside 20 percent for financial aid, more than $66/SCR, but less than $86/SCR, 30 percent, and more than $86/SCR, 40 percent.

SB 530 — Relating to a fixed tuition rate provided by general academic teaching institutions to certain students for satisfactory academic progress performance. This bill proposes to freeze the tuition rate for students who satisfy the state's definition of satisfactory academic progress to the rate charged to the student as a freshman.

SB 531 — Relating to tuition charges for certain courses repeated by students attending public junior colleges. This bill proposes to allow a community college to charge a student a higher tuition rate for a repeated course.

SB 582 — Relating to tuition exemption and fee exemptions for certain military personnel and their dependents. This bill proposes to exempt from payment of tuition and fees certain children and spouses of members and former members of the military who are Texas residents or disabled (and disabled for spouses), completed 20 years of military service, and was not an officer.

SB 775/HB 1837 — Relating to tuition assistance for members of state military forces. This bill proposes to increase from 12 hours to 15 hours the amount of tuition which may be exempt from payment for Texas residents in the state guard and repeals the cap on the annual number of awards.

SB 817 — Relating to financial transaction awareness plans to be adopted by public institutions of higher education. This bill proposes to require each higher education governing board to develop and implement campus financial transaction awareness plans to educate students on the use of credit cards to be funded from fees paid by credit card issuers. The bill also includes application procedures and requirements that credit card issuers must meet in order to solicit business on campus.

SB 1181 — Relating to exempting a peace officer from tuition and fees charged by a public institution of higher education. This bill proposes to allow colleges and universities to exempt from payment of tuition and fees Texas residents who are peace officers.

SB 1227 — Relating to payment of the costs of attending public and private postsecondary educational institutions and to financial aid and other measures to assist students to pay those costs. This bill proposes an array of amendments to the Education Code that were generated through recommendations made by the Texas financial Aid Steering Committee in its report, Preparing for an Emerging Texas. Section 18 of the bill mandates the CB, with the SFA offices, conduct a biennial study on higher education costs and the amounts of student aid awarded.

SB 1228 — Relating to a statewide assessment and accountability system for public institutions of higher education. This bill proposes to establish a statewide assessment and accountability system to measure the effectiveness of Texas' public colleges and universities in serving the needs of Texas students in specific areas.

SB 1289 — Relating to authorizing a state university to conduct a one-time lottery. This bill proposes to allow public universities to conduct a one time lottery to generate funds for the institution to use to support the school. The legislation expires on September 1, 2006.

SB 1398 — Relating to the eligibility of a student for tuition equalization grant. This bill proposes to add on students who meet the requirements for a Texas Grant to be eligible for a TEG.

SB 1399 — Relating to the portion of designated tuition required to be set aside to provide student financial assistance at institutions of higher education. This bill proposes to designate the set asides from tuition to "need-based" and aid to make the 15 percent set aside from the designated tuition "in addition to" the 20 percent set aside from tuition.

SB 1553 — Relating to the creation of a program for alternative funding of the Toward EXcellence, Access, and Success (Texas) Grants. This bill proposes to direct the THECB to develop a plan, with other state agencies, to fund the Texas Grant program through sources other than legislative appropriations.

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TG Sunset Advisory Commission Review Update

The final report by the Texas Sunset Advisory Commission was adopted by the Commission on December 16th and can be accessed at www.sunset.state.tx.us/79.htm under "Decisions".

TG is fully supportive of the findings and recommendations included in the report will be working with the Sunset staff and eventual Senate and House sponsors of the legislation to continue TG for 12 years.

We also greatly appreciate the support exhibited by our customers during this process.

TG's Sunset bill numbers are Senate Bill (SB) 420 carried by Senator John Carona, and House Bill (HB) 2274 carried by Representative Byron Cook. The SB has been referred to the Senate Governmental Organization Committee and the HB has been referred to the House Higher Education Committee. The next step in the process will be for public hearings to be held on the bills by the committees.

TG's Sunset legislation is one 29 Sunset bills, including those to reauthorize the Texas Education Agency, Lottery Commission, Cosmetology Commission, Board of Medical Examiners, Alcoholic Beverage Commission, Public Utility Commission, Public Utility Counsel, Workers' Compensation Fund, and TG which must be passed by the legislature by the end of the 140 day Regular Session.

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The Budget Reconciliation Process

Created in a budget resolution in 1974 as part of the congressional budget process, the reconciliation process is utilized when Congress issues directives to legislate policy changes in mandatory spending (entitlements) or revenue programs (tax laws) to achieve the goals in spending and revenue set out in the annual the budget resolution. Reconciliation is usually used at the end of a fiscal year to enact legislation to balance revenue and spending levels through legislation. The policy changes brought about by this part of the budget process serve as constraints on the levels of mandatory spending, increases or decreases in federal tax revenues, adjustments to the public debt ceiling, and a vehicle for deficit reduction.

The reconciliation process is an optional procedure and not a required action by Congress every fiscal year as is passage of the concurrent budget resolution. However, during the eighteen year period from 1980 to 1998 thirteen reconciliation measures have been enacted into law and numerous others have been considered by Congress.

Occasionally, reconciliation legislation has included extensions of the discretionary spending limits and Pay As You Go (PAYGO) requirements or even reforms to the budget process.

Reconciliation Instructions: The process begins with the inclusion of reconciliation instructions in the budget resolution. These instructions require the 30+ authorizing committees, (e.g., the House Education and Workforce and Senate Health, Education, Labor, and Pensions Committees for student loans), with jurisdiction over mandatory spending and revenue policies to make legislative changes in those programs to achieve a specified level of budgetary savings provisions.

The authorizing committees have complete discretion over the specific programs to be changed and the substance of those changes. An authorizing committee must only meet the specified spending and/or revenue directive given it. The budget resolution normally includes a timetable by which the authorizing committees must report legislation that meets these saving targets. These committees generally hold hearings and mark-up these legislative products which are sent to the Budget Committees.

Budget Committees' Role: Once the relevant authorizing committees have reported their legislation to the Budget Committees, it is the Budget Committees' responsibility to combine those bills into an omnibus bill as specified by the budget resolution. The legislative products of the authorizing committees are packaged together with report language and the Congressional Budget Office's and the Joint Committee on Taxation's cost estimates.

House and Senate Floor Consideration: The Budget Act specifies that Congressional Action on reconciliation legislation should be completed by June 15. It provides specific expedited procedures and restrictions for floor consideration of reconciliation measures, to ensure timely completion. In the House, reconciliation legislation is normally brought from the Budget Committee to the Rules Committee, which grants a special rule governing floor consideration of the measure. Under the Budget Act and traditionally under these special rules no amendment is in order that would increase spending or decrease revenue levels relative to the base bill without equivalent decreases in spending or increases in revenues. In other words, amendments must be deficit neutral.

In the Senate, total debate on a reconciliation bill is limited to 20 hours, although the actual time for consideration of the omnibus package often exceeds this time limit set in the Budget Act. Motions and amendments may be offered and considered without debate at the end of this time period. There are also restrictions on the content of a reconciliation package and on the amendments which may be offered to it. For example, any amendment to the bill that is not germane, would add extraneous material, would cause deficit levels to increase, or that contains recommendations with respect to the Social Security program, is not in order. The Budget Act also maintains that reconciliation provisions must be related to reconciling the budget.

Conference Process: Once a reconciliation bill is passed in the House and Senate, members of each body meet to work out their differences. A majority of the conferees on each panel must agree on a single version of the bill before it can be brought back to the full House and Senate for a vote on final passage. Approval of the conference agreement on the reconciliation legislation must be by a majority vote of both Houses. In the House, the conference report is usually given a special rule from the Rules Committee to govern floor consideration. In the Senate, the floor debate is governed by Senate rules and specific provisions of the Budget Act. In contrast to the concurrent budget resolution, a reconciliation bill is sent to the President for approval or disapproval.

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For more information, contact:

TG Congressional and Legislative Relations
(512) 219-4503
P.O. Box 83100
Round Rock, TX 78683-3100

 

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