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 AACC President Testfies on Fiscal Year (FY) 2006 Funding Priorities 

4/13/2005

Testimony of Dr. George R. Boggs
President and Chief Executive Officer
American Association of Community Colleges


Mr. Chairman and Members of the Subcommittee, on behalf of the American Association of Community Colleges (AACC) and the more than 1,100 public and private degree-granting, regionally accredited two-year institutions of higher education it represents, thank you for the opportunity to share our Fiscal Year (FY) 2006 funding priorities for programs under the jurisdiction of the Labor, Health and Human Services, and Education Subcommittee.

As you are well aware, community colleges represent the nation’s largest and fastest growing segment of American higher education.  Last fall, two-year colleges enrolled more than 6.5 million credit students – approximately 45 percent of all college students in the United States.  Community colleges also enroll disproportionate numbers of minority students -- one-third of community college students enrolled in fall 2002 were minority.  For first generation Americans, community colleges serve as the doors to higher education and to opportunity.

Community college students are heavily dependent on federal financial assistance.  While our institutions remain committed to keeping tuitions as low as possible in order to preserve the “open door” to higher education, a disproportionate share of community college students come from such impoverished backgrounds that, without student financial aid, they could never attend college.  Despite relatively low tuition, the average total cost of full-time attendance at a two-year public institution, including all living and transportation expenses, was $10,362 for the 2003-04 academic year.  After financial aid, the average “net price” of attendance was $7,600 for a full-time, full-year community college student.  The average community college tuition for 2003-04 was $1,954 – a bargain, but nonetheless, a significant sum for many students.

For low-income students, the prospect of incurring significant debt to finance their community college education is discouraging.  Loans are not equal to grants, particularly for those first-generation college students coming from disadvantaged backgrounds.  For this and other reasons, a vital Pell Grant program is essential to maintaining access to postsecondary education in general and to community colleges in particular.  A strong Pell Grant program not only contributes to access to higher education; it helps with retention and completion.

Each year, Pell Grants enable approximately two million community college students to attend college by helping pay for tuition, books and equipment, and living expenses. Unfortunately, the maximum grant has remained unchanged since FY 2003 at $4,050.  In the meantime, the maximum grant has not kept pace with inflation or with rising tuitions and living expenses.  State budget cuts have contributed to higher tuitions and an increasing number of students from low-income families need Pell Grants to realize their higher education goals.

We appreciate the significant efforts this subcommittee has made to keep the Pell Grant program viable as the number of eligible recipients has grown, leading to ever greater program costs.  We believe that the investment the federal government makes in this program reaps significant benefits.  A college education contributes not only to the individual’s success but to the nation’s needs for a highly skilled workforce, robust economy, national security, and a well-educated citizenry.  Individuals with college degrees earn more than high school graduates and are better prepared to adapt to the changing needs of America’s knowledge-based economy. 

Equally important, the growth of the Pell Grant program demonstrates that it is achieving the goal of providing access to postsecondary education for our nation’s financially disadvantaged students. The Pell Grant program has come to symbolize equity and opportunity in American higher education.  In 2002-03, nearly five million students with median family incomes of $15,200 attended postsecondary institutions with Pell Grant assistance.

AACC strongly endorses the Student Aid Alliance call for raising the Pell Grant maximum by $450, to $4,500 in FY 2006.  AACC also supports fully funding the current $4.3 billion Pell Grant program shortfall, as proposed by President Bush.

In addition to the Pell Grant program, AACC recognizes the importance of other federal programs to help students achieve their education, training, and employment goals.  In particular, the GEAR UP program, as well as the TRIO Upward Bound and Talent Search programs, all targeted for elimination this year, encourage young people from low-income families to prepare for college.  The TRIO programs also provide important support services that enable economically disadvantaged students to succeed in college.  A significant number of these first-generation college students attend community colleges.  In fact, 43% (481) institutions have TRIO programs, including 298 institutions with Upward Bound and/or Talent Search programs. TRIO programs serve 278,045 students at a cost of nearly $253 million, with 138,414 students and $128 million at risk for complete elimination of programming.  AACC recommends that GEAR UP be increased by $44 million, to $350 million, and the TRIO programs be increased by $50 million, to $886 million in FY 2006.

Another funding priority for community colleges is the Strengthening Institutions Program, Title III-A of the Higher Education Act. This program provides critical funds to institutions that have relatively limited resources and serve high proportions of low-income and historically underrepresented populations.  Title III-A grants enable the colleges to improve their educational programs and related services.  These awards are subject to an intense competition process. Despite the importance of this program, it has been one of the most under-funded programs in the Department of Education.  By definition, all institutions that are eligible to receive these grants sorely need the funding, but because of the limited dollars, only a small percent ultimately receive awards.  AACC requests an increase of $21 million, to $101 million, for FY 2006.

Community colleges also have a great interest in the Carl D. Perkins Vocational and Technical Education Act.  The Basic State Grant of the Perkins Act is a key source of workforce development funding.  Despite Administration assertions to the contrary, the Perkins Act has been highly effective at the postsecondary level.  Community colleges use these grants for a variety of purposes, including innovative occupational education curricula; helping students meet challenging academic, vocational, and technical standards; training first responders and public safety officers; purchasing equipment; supporting professional development; and strengthening important links between the institutions and businesses.

Like Title III-A, these funds are of enormous benefit to our colleges because they can be used in a variety of ways.  Perkins equipment funds also have tremendous state and private leveraging power.  It is rare to find large and sophisticated equipment in a community college that has just one funding source, and Perkins is a key component of the leveraging equation.

For the third straight year, the Administration has proposed cutting funding for vocational education programs – this year proposing to eliminate them altogether.  At a time when our colleges are counting on an increased investment to help meet the demands of the workforce, cuts would seriously erode their capacity.  We urge Congress to appropriate $1.4 billion for the Perkins Basic State Grant Program for FY 2006.

AACC supports continued funding for the Tech Prep program authorized under the Perkins Act.  Tech Prep represents the cutting edge in educational reform.  It helps create partnerships between high schools and postsecondary institutions, links academic and vocational education, and emphasizes the teaching practices found in high-performance businesses.  Students learn skills needed to succeed in careers that are currently in demand.

The Child Care Access Means Parents in School (CCAMPS) program supports the participation of low-income parents in postsecondary education by providing campus-based child care services.  Current demand for affordable and convenient quality childcare exceeds the supply.  Expanding access to on-campus childcare will help increase access to postsecondary education for many low-income students.

The Administration’s request to fund the Child Care Access Means Parents in School program at $16 million in FY 2006 is disappointing.  Student persistence may be adversely affected without affordable child care. Therefore, we encourage the subcommittee to restore CCAMPS funding to its FY 2001 level of $25 million.

The Workforce Investment Act (WIA) is the primary vehicle through which the federal government, working with states and with local entities, provides job training and other employment-related services. The system shows enormous promise through its integration of a variety of job-related activities, and many community colleges have capitalized on this system.  However, the success of this law depends on greater investment by the federal government.  AACC urges the subcommittee to provide funding levels equivalent to the FY 2002 levels enacted for the major programs funded through this Act, including $1.55 billion for dislocated workers and $950 million for adult workers.

Finally, community colleges welcome the Administration’s proposal for a $250 million Community-Based Job Training Grants program.  The program will fund partnerships of community colleges, business, and workforce investment boards seeking to train workers for occupations in high demand.  Community colleges greatly need this infusion of resources to meet current demand.  AACC urges the subcommittee to fund this important new program.

In summary, AACC requests for FY 2006:

  • Raise the Pell Grant maximum by $450 and retire the shortfall;
  • Increase support for GEAR UP and TRIO programs;
  • Fund the Strengthening Institutions Program at $101 million;
  • Increase Support for the Carl D. Perkins Vocational and Technical Education Act Programs;
  • Provide $25 million for CCAMPS;
  • Provide FY 2002 levels for WIA; and
  • Fully fund the President’s Community-Based Job Training Grants.

AACC appreciates this opportunity to share our funding priorities for FY 2006.  My staff and I would be pleased to work with you as the FY 2006 appropriations process unfolds.  Please feel free to contact David Baime, Vice President of Government Relations, extension 224 or dbaime@aacc.nche.edu; Jim Hermes, Senior Legislative Associate, extension 216 or jhermes@aacc.nche.edu; or Laurie Quarles, Legislative Associate, extension 249 or lquarles@aacc.nche.edu.  

                                      

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