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Legislative Issues in 2004

NACUBO Update SACUBO 2004 Annual Meeting James E. Morley, Jr., President & CEO National Association of College and University Business Officers. Legislative Issues in 2004. Legislative Issues in 2004. HEA Reauthorization College Costs FY05 Budget Medicare Modernization Act of 2003.

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Legislative Issues in 2004

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  1. NACUBO UpdateSACUBO 2004 Annual MeetingJames E. Morley, Jr., President & CEO National Association of College and University Business Officers

  2. Legislative Issuesin 2004

  3. Legislative Issues in 2004 • HEA Reauthorization • College Costs • FY05 Budget • Medicare Modernization Act of 2003

  4. Legislative Issues:HEA Reauthorization • Congress is reauthorizing the Higher Education Act of 1965, but no major action anticipated until after November elections • Current law runs out in September 2004 and can be extended • The HEA impacts institutions in numerous ways • Unfunded mandates • Federal student assistance, including grants, loans, and campus-based aid • Grants to institutions • Oversight of Department of Education

  5. Legislative Issues:HEA Reauthorization • Central themes of reauthorization include: • College cost and price • Access and choice for students • Administrative efficiency • Institutional accountability

  6. Legislative Issues:College Costs • First “shot across the bow” is bill by Rep. McKeon (R-CA), originally introduced in 2003 and amended significantly in early 2004 • Would create an “Affordability Index” with mandated institutional reports • Portion of bill possibly subjecting institutions to sanctions dropped • Bill also addresses transfer of credits between institutions and offers some regulatory relief

  7. Legislative Issues:College Costs • Senate Democrats introduced bill which would: • Penalize state governments reducing higher education funding by more than 10 percent in one year • Raise Pell Grant maximum to $4,500 from current $4,050 • Double size of Hope Scholarship tax credit • Offer incentives for institutions to participate in the Direct Loan program

  8. Legislative Issues:FY05 Budget • Pell Grant maximum is static for third year • New loan program proposals • Loan limits raised for fist time since 1986 • Expansion of Lifetime Learning Credit proposed • Treasury Department plans new enforcement efforts

  9. Legislative Issues:Medicare 2003 • Prescription drug benefit rules for employer-sponsored health care programs • Federal subsidy is 28% of covered prescription drug costs actually paid by participant between $250 - $5,000

  10. Legislative Issues:HEROES Act • HEROES Act extends existing law assisting military personnel with temporary deferments or delays in repayment of their federal student loans when they are called to active duty • Also provides guidelines for institutions on refunding of tuition and re-enrollment processing for affected students • Regulations issued on December 12, 2003

  11. Legislative Issues:CARE Act • CARE Act seeks to provide tax breaks encouraging donations to nonprofit organizations, including colleges and universities • Bill currently in political limbo in Senate and unlikely to move soon • If passed, bill could positively impact donations to institutions • Allows non-itemizing individual tax filers to take a deduction of between $250 and $500 in 2003 and 2004 tax years • Permits IRA rollovers to charities without tax penalty after 59.5 years of age

  12. Regulatory Issuesin 2004

  13. Regulatory Issues in 2004 • Department of Education • Environmental Protection Agency • Internal Revenue Service

  14. Regulatory Issues:Department of Education (ED) • eZ-Audit requires institutions to provide data elements from their financial statements over the Web along with a PDF of their audit • Still must submit audit under OMB Circular A-133 • NACUBO lobbied against the program, and continues to have serious concerns • Revised eZ-Audit templates available 3/15/04 • Work with financial services at your institution • NACUBO and other associations commenting as of 4/22/04

  15. Regulatory Issues:Environmental Protection Agency (EPA) • EPA enforcement continues to target colleges and universities • EPA Sector Initiative – six associations working with EPA HQ and regions • Environmental Management Systems (EMS) • Performance Measurement • Regulatory Change

  16. Regulatory Issues:Internal Revenue Service • Information Reporting for the Education Tax Credits – 2003 first year for reporting financial data to students and the IRS on Form 1098-T • New Publication 970, Tax Benefits for Higher Education, provides guidance for students and parents • Focused audits on nonresident alien compliance continue

  17. Regulatory Issues:Internal Revenue Service • Student FICA withholding for certain student employees • Aimed at subjecting medical residents to FICA withholding • NACUBO Web cast available, with IRS representatives explaining details of proposed rules

  18. NACUBO Activities:The Entrepreneurial Campus • NACUBO’s Annual Meeting in Milwaukee • July 17-20 • Theme: The Entrepreneurial Campus • General Sessions: • Jim Collins • Derek Bok • Larry Sabato

  19. Emerging Issues

  20. Emerging Issues:Performance Measurement • Started with GASB project on service efforts and accomplishments, aimed at identifying appropriate criteria for performance measures • NACUBO survey in December to find out what measures are being used by colleges and universities • Focused on internal measures that institutions can use to mark progress toward goals, compare programs • Aiming for a practical template for institutional use

  21. Emerging Issues:Human Resources • Members are finding HR issues rising: • Health care costs • Litigation • Morale in the face of budget cuts • Demographics of work force

  22. BUILDINGORGANIZATIONALCAPACITY

  23. PUBLIC TO PRIVATE GOOD

  24. PRODUCER TO CONSUMER-DRIVEN MARKET

  25. UNSUSTAINABLE PRICE INCREASES

  26. NACUBO’S BUILDING ORGANIZATIONAL CAPACITY PROJECT

  27. Vision, Mission, Goals • Policies • Processes • Structure • Systems • Infrastructure • Governance • Culture

  28. VISION, MISSION, GOALS: The fundamental purpose and significant aspirations of the institution or activity. • POLICIES: The core principles guiding all aspects of the realization of the mission and purpose. • PROCESSES: The means by which the mission and goals are realized. • STRUCTURE: The organization of people and activities aligned and identified to accomplish mission, goals, and core processes.

  29. SYSTEMS: The supporting information and other processes that promote effective communication, management, and oversight. • INFRASTRUCTURE: The human, physical, and financial support assets in place to create and sustain the entire effort as defined by the vision and mission. • GOVERNANCE: The exercise of authority, responsibility, and control over goals, activities, and results. • CULTURE: The overall character, values, beliefs, and style of the organization—its essential personality.

  30. OUTCOMES • Cases • Workshops • Graduate School Curriculum

  31. THANK YOU!

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