Madam Chair, I rise to claim time in opposition though I do not oppose the amendment. Madam Chair, this amendment is important, I think, because I have some military experience and I have a lot friends with military experience, and as we…
Madam Chair, I rise to claim time in opposition though I do not oppose the amendment.
Madam Chair, this amendment is important, I think, because I have some military experience and I have a lot friends with military experience, and as we send our young men and women across the world to defend us, they do take advantage of college opportunities that so many people and so many institutions do offer our military. And when they come home, we should expect that their efforts should count towards their degrees.
I think this is a very good thing to do, and I appreciate the gentleman from Idaho for bringing this forward.
Madam Chair, I reserve the balance of my time.
Again I just want to say I agree. When our military men and women travel, they're temporary. When they travel, they're away from their homes and they move around quite often. And the military has done an outstanding job of encouraging people to advance their degrees, advance in the ranks; noncommissioned officers as well as commissioned officers now require education and degrees. And I think it's very important that we do this, as they may be in Afghanistan for a year and then back in Fort Campbell, Kentucky, for a year or two, and they're picking up different courses. Then when they get home and want to get on with their life and get back into the civilian sector, they ought to put all that together into a clear path towards a degree.
Again I appreciate the gentleman bringing this forward.
Madam Chair, I yield back the balance of my time.
Madam Chair, I rise to claim time in opposition though I'm not opposed to the amendment.
Madam Chair, as I understand it, the purpose of this amendment is to ensure States applying for this new pre-K funding understand any geographic disparity between early learning programs for low-income children and consider steps to reduce the disparity. This amendment's a positive step. It may even move us closer to ensuring more low-income children are served by this program, something that's really not clearly spelled out in the bill.
Madam Chair, I reserve the balance of my time.
Madam Chair, I yield back the balance of my time.
Madam Chairman, I rise to claim time in opposition, although I do not oppose the amendment.
The purpose of this amendment is to ensure dislocated workers are encouraged to compete through the grant process, and we think that's a worthwhile goal.
Also, since I have time, I want to complement what Chairman Miller just said on BRAC. I actually represent Fort Knox, which is a big winner in the BRAC. I know a lot of communities were distressed before, but Fort Knox is going to be expanding and putting a lot of strain on our local schools.
I look forward to seeing what comes out of conference and being an opportunity to be supportive of that. I really appreciate that very much.
I yield back the balance of my time.
Madam Chair, I rise to claim time in opposition, although I am not opposed to the amendment.
Madam Chairwoman, the purpose of this amendment is twofold: it gives priority for applicants for the Community College Grant Program serving students who are veterans, and it also will allow to expand in energy-related fields.
We do not oppose the amendment, and I yield back my time.
Madam Chairman, I rise to claim time in opposition, although I am not opposed to the amendment.
I yield myself as much time as I may consume.
When we're talking about the $10 billion savings to the deficit and using CBO numbers, the number that we like to talk about, if you look at the overall cost of the budget, CBO numbers in the discretionary side, what this bill would do to the discretionary side, they're transferring money out of the mandatory into the discretionary side for administration.
And, also, as we expand Pell Grants, with this bill we will expand Pell Grants, on the mandatory side, which this bill scores, it doesn't score what will happen in the discretionary side. Part of Pell Grants are discretionary, so if you expand Pell Grant applicants in the mandatory side, it is also going to require additional appropriations. And we believe that the admin in the discretionary side plus the expansion of Pell Grants from CBO numbers is $13.5 billion cost to the system, which is more than the $10 billion that we're putting in the deficit reduction now. So we will have to increase more than we're putting in the deficit reduction.
The other thing is, these numbers were scored by CBO in March, and the most up-to-date numbers of people participating in the Pell Grants as of August--now that we're here in September--the August numbers believe that it will be $11.4 billion in added Pell Grant costs when using the most up-to-date numbers. And so I think those are real numbers that we can talk about. We are already up to--I guess it's $25 billion of costs that this will have when we're talking about $10 billion in savings.
The one thing that wasn't taken into account either--and these are numbers that could come to pass or not, but those first two numbers I think are real. The other is the $33 billion that CBO says hasn't been identified that are market risk to the program. Now, that's market risk: so you could have them, you could not have them, I'll cede that. But I do believe that the discretionary side of Pell and the most up- to-date numbers of Pell do show that it's about a $25 billion cost of the bill.
Madam Chairwoman, I reserve the balance of my time.
Mr. Chairman, if we disagree with the CBO numbers from the March score, instead of using the
most up-to-date ones, if you take $10 billion and save it from a mandatory program, I applaud that, and I applaud the amendment because we should save toward deficit reduction. Yet, if the bill allows you to take $10 billion and to save it for deficit reduction but on the discretionary side of the counter a tax dollar is a tax dollar and it requires you to spend $13.5 billion on transferring administrative costs from the program to discretionary, then the additional Pell Grants are going to have to be spent by the discretionary side through the appropriations process. So when you save $10 billion here but you spend $13.5 billion there, then you're raising the deficit $3.5 billion. I don't know any other way to look at it.
I reserve the balance of my time.
I yield back the balance of my time.
Mr. Chairman, I have an amendment at the desk.
Mr. Chairman, I yield myself as much time as I may consume.
I am pleased to join Ranking Member Kline in offering this amendment. Our amendment accomplishes key goals for student loan stabilization and reform without gutting a successful public-private partnership.
First, this amendment preserves the FFEL program--the Federal Family Education Loan Program. It ensures stability and continuity for both students and schools by extending the Ensuring Continued Access for Student Loans Act, or ECASLA, through 2014, which aligns it with the rest of the Higher Education Act, which Congress reauthorized last year.
As long as we're facing a global credit shortage, ECASLA provides a Federal backstop to ensure there is no interruption in funding for students and families. As the market recovers, ECASLA offers the flexibility for private capital to return. In fact, even in today's weakened economy, a substantial portion of loans originated in the FFEL program are made with private capital.
We know the ECASLA programs are working on campuses all around the country. We have heard from a group of financial aid administrators who have made it clear that ECASLA is working. You just don't have to talk to financial administrators. I would submit that 4,400 colleges and universities still participate in the FFEL program, and they voted with their feet. If they felt
that ECASLA had not been working, they would have joined the Direct Loan Program by now, but they haven't.
I've heard from colleges and universities across my district--from large public, State universities to small, independent, private colleges, and they've all shared with me how the FFEL program benefits their students by offering the services of flexibility and choice with additional services. Let's not forget about how this helps students.
Second, our amendment will drive down the deficit. ECASLA proves that you can save taxpayer money while preserving an effective program. In fact, we expect to generate $13 billion in savings over the next 5 years. Poll after poll shows that the American people are deeply concerned about the deficit. We should invest in future generations by putting the savings toward deficit reduction.
Third, we chart a path for the future by pursuing a comprehensive renewal of student lending. By extending ECASLA through 2014, consistent with other financial aid programs, we create a vital window of opportunity to pursue real student loan reform. Our amendment would create a commission to study the student lending system and would propose a new framework for stable, cost-effective financing.
We will remove politics from the discussion and focus on what matters: preserving choice and competition for borrowers; preventing waste, fraud and abuse; maintaining value-added benefits like financial literacy and counseling; ensuring stability even in a weak economy; and retaining private capital, avoiding a massive infliction of debt on future generations.
Finally, I would like to point out that our amendment does not create the same long-term entitlement expansions that have been called for in this bill. The issues addressed in the majority's bill are all important. Republicans care about the condition of our schools, about pre-K education, about community colleges, and about their role in developing our workforce, but this is the wrong place and the wrong way to address these challenges. We can invest in students without crippling them with runaway entitlement spending. This is a straightforward amendment based on extending a bipartisan solution. I urge my colleagues to support this amendment.
I reserve the balance of my time.
I yield 3 minutes to the gentleman from Minnesota (Mr. Kline).
Mr. Chairman, the 2014 numbers, when the Higher Education Act is reauthorized--and we feel it would be appropriate to do it--when we have ECASLA in place, when the markets are turning around, when the markets do turn around, the heavy lifting--we were at a unique time last year. I wasn't in the Congress last year when the bipartisan group came together to do ECASLA to preserve, and worked, both Republicans and Democrats together, and should be commended for that.
All we are asking is that we continue that until the higher education is authorized, during that time have the commission study and see exactly with what program we should go. We did talk a lot about deficit reduction because, quite frankly, I think that's the most important thing in the country.
If we look at CBO numbers, when you say $10 billion in a mandatory spending program, but spend $13.5 billion in a discretionary spending program using CBO numbers, then you are not putting $10 billion to the deficit if you are spending $13.5 billion in discretionary spending, because as the Pell Grants expand on the mandatory side of the aisle, they also expand on the discretionary side. So when a taxpayer sends their dollar to Washington D.C., they don't mark it for discretionary or mandatory, it comes here and it's spent.
So the underlying bill, using CBO numbers, I am not going to bring in the market risk, because we can argue that. Some people have asked for $33 billion, we could argue that. But just in real hard numbers, spending, transferring administration in the Pell Grant, discretionary side, says that the underlying bill is a $3.5 billion addition to the deficit.
I yield back the balance of my time.
Mr. Chairman, I demand a recorded vote.