To:           AASCU Presidents and Chancellors
From:      Ed Elmendorf, Sr. Vice President, Government Relations and Policy Analysis
                Robert Moran, Director, Federal Relations and Policy Analysis
Re:          Congressional Passage of the FY 2010 budget 
Date:      April 30, 2009

AASCU Information Advisory:  Yesterday, the House of Representatives passed a fiscal year 2010 budget resolution by a vote of 233-193.  The Senate followed with a vote of 53-43 in favor.  The resolution establishes a non-binding blueprint that includes the money that Congress is permitted to spend through the annual appropriations process - it also provides a mechanism for Congress to consider legislation to overhaul federal financial aid and healthcare.

The budget resolution, S. Con. Res. 13, provides a little more than $1.06 trillion to be divided among the twelve appropriations bills.  The Congress will begin the appropriations process shortly, with an expectation that it will be finalized in the fall.  The President has yet to submit his budget priorities for this process, but it is expected in the first week of May.

In addition, the final budget resolution includes reconciliation instructions.  Including reconciliation in the budget resolution is supported by AASCU (as noted by this letter of support sent to the House and Senate).  It is a key tool to be used later in deciding the outcome of the education debate on Pell grants and the proposed changes in the student loan programs. Reconciliation is simply a process that requires certain committees to report legislation that will provide budget savings over a stated period of time.  This process allows for a 50-plus one vote in the Senate on legislation brought to the floor for debate, compared with the normal requirement of 60 votes in order to end debate and thwart a filibuster.  In this case, the language in the resolution simply provides a mechanism for legislation affecting changes in healthcare and education to be debated later this year.

With regard to education, the budget calls for the education committees to reduce spending in programs under their jurisdiction by $1 billion over the next five years.  However, the resolution also contains reserve funds that would allow the committees to spend for a specific purpose.  The resolution allows for a higher education reserve fund to accommodate legislation that would impact access to higher education.  Most notably, this could allow for a measure that increases funding for the Pell Grant program, including the maximum award, and shifts all higher education loans to be made through the Direct Loan Program as suggested by the President.

While the specific and various funding levels are not binding, in the function that includes education programs, the resolution provides enough funds to support President Obama’s initial request.  It will be up to the Appropriations Committees to determine the final funding levels for education and each specific program. 

For more on the budget resolution click here.  AASCU will be working to keep you informed about the progress made in the funding for low-income students.  Should you have any further questions, please do not hesitate to contact either Bob Moran via phone (202-478-4653) or e-mail (moranr@aascu.org) or Ed Elmendorf via phone (202-478-4651) or e-mail (elmendorfe@aascu.org).