August 2009
Federal funding, new higher education legislation
Funding for Canisius Science Programs
The 2009 federal budget includes a $285,000 appropriation to Canisius College for science equipment. The appropriation was supported by Rep. Brian Higgins, Rep. Louise Slaughter, Senator Charles Schumer and Senator Kirsten Gillibrand. This is the first federal appropriation directed to the development of a new integrated science center in the college’s Science Hall.
Senator Schumer and Representatives Higgins, Slaughter, and Chris Lee have all proposed additional funding for Science Hall in the 2010 fiscal year. Their proposals are working their way through the budget process in various congressional committees. Congressional leadership is aiming for approval of the new budget prior to the start of the 2010 fiscal year on October 1.
The Student Aid and Fiscal Responsibility Act of 2009
While approval of the Higher Education Opportunity Act last year set out major federal policy that covers a full range of higher education issues over the next six years, Congress has been busy at work this year considering additional legislation that will add to federal policy and make additional funds available to students.
Included in various drafts of the proposed legislation are initiatives that will:
- Require all colleges to convert to direct lending by July 1, 2010. Congressional sponsors project savings from this move at $87 billion over the next ten years; the legislation would allocate $40 billion to Pell grant increases, with a portion of the other funding directed to several non-higher education programs including K-12 education and a reduction of the federal deficit.
- Increase Pell grant funding, to bring full-year maximum funding to $5,550 in 2010. Future increases in the grants will be linked to increases in the Consumer Price Index plus one percent.
- Restructure the Perkins Loan Program, adding available funds. Some members of Congress are looking to require colleges and students to pay at least a portion of interest costs of such loans that accrue while a student is still attending school.
- Simplify the Free Application for Federal Student Aid (FAFSA) form.
The 2010 Federal Budget and contributions to non-profits
President Obama presented his proposed 2010 Fiscal Year budget in April. Aside from suggested policy and funding changes outlined above, the president’s budget has offered a change in federal tax policy that could affect higher education.
The president’s plan suggests a reduction in the maximum deduction that high-income individuals and families could use in making charitable contributions. The plan, which would affect families with annual income of more than $250,000, has been criticized as limiting tax savings for contributions, a move that could particularly impact college and universities.
State Grants
On August 6, the New York State Dormitory Authority approved Canisius’ application for $1,949,354 in Capital Matching Grant funds under legislation approved in 2005. Canisius submitted its’ application in February 2007. The Capital Matching funds will be used for Science Hall.
The State Legislature has also approved six new appropriations for Canisius College in the adopted 2009-2010 budget as well as a Senate resolution that recently allocated member items funds. The Canisius grants include:
- $100,000 for the development of a Women’s Business Center initiative to coordinate economic development activities with similar organizations throughout the state. This funding was sponsored by Senator William Stachowski.
- $25,000 for Women’s Business Center programs, initiated by Senator Antoine Thompson.
- $38,000 for the development of economic development programs at the Canisius Center for Professional Development. Assemblyman Robin Schimminger backed this appropriation.
- $25,000 for expenses related to the March 2010 NCAA Regional Basketball Tournament, organized by Canisius and Niagara University. This was also sponsored by Senator Stachowski.
- $8,000 for Literacy Center programs, approved with the assistance of Assembly Majority members from Western New York.
- An additional $6,000 for the Literacy Center through the efforts of Senator Thompson.