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Washington Partner Perspectives For March 20, 2007

Today’s questions are answered by John Dean and Harrison Wadsworth, Principals at the firm.

John and Harrison specialize in representing clients with interests involving the Federal higher education programs. Prior to joining a predecessor firm to Washington Partners, John served as assistant counsel to the Committee on Education and Labor of the U.S. House of Representatives. He is an attorney admitted to practice law in the District of Columbia and Virginia.

Harrison came to Washington Partners after several years with the Education Finance Council, an association of non-profit student loan providers. He is also former legislative director for Congressman Bart Gordon (D-TN).

Today’s questions focus on the FY 2008 Budget Resolution.

How did the higher education community react to the FY 2008 Budget Resolution passed by the Senate this week?

Dean:
They were very pleased to see funding for education $6 billion above the Bush Budget. They were disappointed that the resolution was subject to sharp partisan debate and a split vote of 12-11. That doesn’t bode well.

The Senate Resolution originally included an unusual “Social Security First” provision that creates a new point of order allowing any Senator to object to new spending, even if the overall package is budget neutral, if new revenues or savings are not directed towards resolving the budget shortfalls in Social Security. Do you expect this provision to survive?

Wadsworth:
We were surprised to see it in the resolution because we think it could be raised more often than perhaps Chairman Conrad assumes. Any senator that did not like a spending proposal could threaten to raise the point of order to secure changes. This has now been changed by an amendment by Senator Jim Bunning, a Kentucky Republican, that prevents future budget resolutions from being adopted if they call for increasing the Social Security shortfall.

The House is expected to approve a budget resolution similar to the Senate next week. Are we going to see an approved budget resolution before the end of April?

Dean:
I think so.

Wadsworth:
I agree, but it won’t be easy. Democrats are very motivated to produce one, however, to try and show that they can govern.

The House resolution has a “reconciliation instruction” telling the Education and Labor Committee to pass legislation that would save the government $75 million over the next five years. What is the purpose of that?

Dean:
That relatively small amount of money won’t do much to reduce the federal budget deficit, so it seems to have another purpose. Budget Committee Chairman Spratt said that it is designed to pave the way for student loan reforms. Apparently it would be used to try and pass controversial changes to the student loan programs as part of a reauthorization of the Higher Education Act.

Wadsworth:
The so-called reconciliation process was designed to allow passage of legislation reducing the federal deficit. A reconciliation bill has special rules to ease its passage, notably that debate in the Senate is automatically ended after 50 hours, preventing a filibuster. In other words, normal legislation needs three-fifths to end debate in the Senate and have a final vote, while a reconciliation bill can pass with a simple majority.

Will the budget resolution undermine the announced intention of both Chairman George Miller and Chairman Edward Kennedy to mark-up a Higher Education Reauthorization bill this year?

Dean:
No, it won’t, but it if it is approved it means the bill will be more modest in terms of changes to the loan programs.

Wadsworth:
I think it may because if the Democrats pursue some of their more expensive proposals, they will have no choice but to pursue more radical changes to the student loan programs. That means bipartisan support could become harder to come by. That could undermine prospects for a bill this year.


Washington Partners, LLC is a full service government affairs and public relations consulting firm that has built a reputation for producing results. The partners - long-term insiders in education policy - came together in 2002 to form Washington Partners, LLC. The firm boasts a staff of strategic and innovative thinkers providing a wide array of services that are customized to meet clients' needs. By consistently exceeding client goals and expectations, the firm's client list continues to grow. The firm's website may be found at: www.wpllc.net.

"Partner Perspectives" is produced weekly by Higher Education Washington, Inc. and is available on both the Washington Partners, LLC website and under "Opinions and Interviews" in the HEWI Quad located at www.hewiquad.net. Opinions expressed in "Partner Perspectives" are those of the person interviewed and not those of Washington Partners, LLC, its clients, or of Higher Education Washington or the HEWI Quad.

"Partner Perspectives" may be reprinted upon request made to Higher Education Washington, Inc. or Washington Partners, LLC.