U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

99–010

" ! SENATE 107TH CONGRESS

1st Session

REPORT

2001

107–101

Calendar No. 244

DISTRICT OF COLUMBIA COLLEGE ACCESS

IMPROVEMENT ACT OF 2001

R E P O R T

OF THE

COMMITTEE ON GOVERNMENTAL AFFAIRS

UNITED STATES SENATE

TO ACCOMPANY

H.R. 1499

TO AMEND THE DISTRICT OF COLUMBIA COLLEGE ACCESS ACT

OF 1999 TO PERMIT INDIVIDUALS WHO GRADUATED FROM A

SECONDARY SCHOOL PRIOR TO 1998 AND INDIVIDUALS WHO

ENROLL IN AN INSTITUTION OF HIGHER EDUCATION MORE

THAN 3 YEARS AFTER GRADUATING FROM A SECONDARY

SCHOOL TO PARTICIPATE IN THE TUITION ASSISTANCE PROGRAMS UNDER SUCH ACT, AND FOR OTHER PURPOSES

NOVEMBER 29, 2001.—Ordered to be printed

(II)

COMMITTEE ON GOVERNMENTAL AFFAIRS

JOSEPH I. LIEBERMAN, Connecticut, Chairman

CARL LEVIN, Michigan

DANIEL K. AKAKA, Hawaii

RICHARD J. DURBIN, Illinois

ROBERT G. TORRICELLI, New Jersey

MAX CLELAND, Georgia

THOMAS R. CARPER, Delaware

JEAN CARNAHAN, Missouri

MARK DAYTON, Minnesota

FRED THOMPSON, Tennessee

TED STEVENS, Alaska

SUSAN M. COLLINS, Maine

GEORGE V. VOINOVICH, Ohio

PETE V. DOMENICI, New Mexico

THAD COCHRAN, Mississippi

ROBERT F. BENNETT, Utah

JIM BUNNING, Kentucky

JOYCE A. RECHTSCHAFFEN, Staff Director and Counsel

CYNTHIA GODEN LESSER, Counsel

MARIANNE CLIFFORD UPTON, Staff Director and Chief Counsel,

Oversight of Government Management, Restructuring and the District of Columbia

HANNAH S. SISTARE, Minority Staff Director and Counsel

JOHANNA L. HARDY, Minority Counsel

MASON C. ALINGER, Minority Professional Staff Member,

Oversight of Government Management, Restructuring and the District of Columbia

DARLA D. CASSELL, Chief Clerk

(III)

C O N T E N T S

Page

I. Purpose and Summary .................................................................................. 1

II. Background .................................................................................................... 2

III. Legislative History ......................................................................................... 3

IV. Section-by-Section Analysis .......................................................................... 5

V. Cost Estimate of the Congressional Budget Office ..................................... 7

VI. Evaluation of Regulatory Impact .................................................................. 11

VII. Changes in Existing Law .............................................................................. 11

Calendar No. 244

107TH CONGRESS REPORT

1st Session " ! SENATE 107–101

DISTRICT OF COLUMBIA COLLEGE ACCESS IMPROVEMENT

ACT OF 2001

NOVEMBER 29, 2001.—Order to be printed

Mr. LIEBERMAN, from the Committee on Governmental Affairs,

submitted the following

R E P O R T

[To accompany H.R. 1499]

The Committee on Governmental Affairs, to which was referred

the bill (H.R. 1499) to amend the District of Columbia College Access Act of 1999 to permit individuals who enroll in an institution

of higher education more than three years after graduating from a

secondary school and individuals who attend private Historically

Black Colleges and Universities nationwide to participate in the

tuition assistance programs under this Act, and for other purposes,

reports favorably thereon with an amendment in the nature of a

substitute and recommends that the bill as amended do pass.

I. PURPOSE AND SUMMARY

The District of Columbia College Access Improvement Act (the ‘‘College Access Improvement Act’’), as reported by the Senate Committee on Governmental Affairs, amends Public Law 106–98, the

District of Columbia College Access Act of 1999 (the ‘‘College Access Act’’), by: (1) eliminating the requirement that residents of the

District of Columbia must continue on to college within three years

of high school graduation in order to be eligible for tuition assistance through the College Access Act; (2) expanding the list of eligible institutions to include private Historically Black Colleges and

Universities nationwide; (3) expanding the pool of eligible students

to include all District of Columbia residents who have resided in

the District of Columbia for at least five consecutive years prior to

applying for the grant and who are enrolled at an eligible institution as of the date of enactment of this Act; (4) requiring that a

dedicated account be established for the resident tuition support

program; and (5) clarifying language in the College Access Act reVerDate 11-MAY-2000 07:37 Nov 30, 2001 Jkt 099010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\SR101.XXX pfrm13 PsN: SR101
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garding the use of administrative funds for the District of Columbia Tuition Assistance Program.

II. BACKGROUND

The College Access Act established a tuition assistance program,

administered by the Mayor of the District of Columbia, to give District of Columbia residents who are recent high school graduates

the ability to pay in-state tuition rates upon admission to public

colleges and universities nationwide. Public university grants may

not exceed $10,000 in any award year, with a total cap of $50,000

per individual. The total individual cap of $50,000 allows students

to receive the maximum $10,000 scholarship amount for up to five

years. Annual funding of $12 million has been authorized to fund

the public school portion of the Act.

The College Access Act also provides tuition assistance grants for

students attending private colleges in the District of Columbia or

the adjoining counties in Maryland and Virginia, and private

HBCUs in Maryland and Virginia. Tuition assistance grants for

private colleges may not exceed $2,500 in any award year, with a

total cap of $12,500 per individual. Annual funding of $5 million

is authorized to fund the private school portion of the Act.

In order to qualify for the grants under the College Access Act,

District residents must have graduated high school in or after

1998, they must start college or university within three years of

graduating high school, and they must prove domicility in the District of Columbia for one year prior to their freshman year.

The District of Columbia Tuition Assistance Program (the ‘‘Program’’) was created by Mayor Williams in April 2000 to administer

the tuition assistance provided under the College Access Act. Despite strong efforts to promote the Program among District of Columbia students, the Program does not now have sufficient participation levels to spend all, or even nearly all, of the funds appropriated for its use. In September 2001, as mandated by section 6(c)

of P.L. 106–98, a Department of Education Inspector General audit

report indicated that for the period January 1, 2001 through June

30, 2001, the District’s Finance Office still had about $23.7 million

remaining in Program funds after disbursements. (Department of

Education Inspector General Audit Report number ED–OIG/A03– B0003). The Committee did not expect the Program in its infancy

to use its full annual appropriation of $17 million; nevertheless, the

considerable surplus led Congress to consider expanding the categories of eligible institutions and eligible students.

During consideration of the original Act, a consortium of 17 private-sector companies and foundations (including Mobil Corporation, America Online, Fannie Mae, Sallie Mae, US Airways, Lockheed Martin Corporation, Bell Atlantic, the Morris and Gwendolyn

Cafritz Foundation, the J. Willard and Alice S. Marriott Foundation, and the Washington Post) raised $20 million to start the District of Columbia College Access Program (DC CAP), a non-profit

organization dedicated to encouraging District public high school

students to enter and graduate from college. The intent of the organization was to provide private-sector support that could complement the Program.

Since that time, DC CAP has partnered with the District of Columbia public school system to place college advisors in each public

3

high school. These advisors work with students in 9th through 12th

grades to motivate them to apply to and remain in college. In addition, DC CAP helps students through the application processes for

college admission and financial assistance (including DC Tuition

Assistance Grants), conducts educational planning workshops and

seminars for parents, provides DC high school graduates help for

up to 5 years after graduation to ensure completion of college, and

provides information resources through College Information Resource Centers in each District of Columbia high school.

With the help of the Program and DC CAP, more District of Columbia high school students are applying to and attending college.

The Committee believes that this public-private partnership, as

well as the quality of the District of Columbia Tuition Assistance

Program office established by the Mayor, has been largely a success. H.R.1499 as amended by the Committee is intended to finetune the College Access Act and reasonably expand the program in

a way that would be manageable for the city. For additional background on the creation of the College Access Act, refer to Senate

Report 106–154.

III. LEGISLATIVE HISTORY

Representative Constance Morella (R–MD), Chairman of the

Committee on Government Reform Subcommittee on the District of

Columbia and Delegate Eleanor Holmes Norton (D–DC), the Subcommittee’s Ranking Member, along with Representative Tom

Davis (R–VA), introduced H.R. 1499, the District of Columbia College Access Act Technical Corrections Act of 2001, on April 4, 2001.

H.R. 1499 was approved by unanimous consent by the House Subcommittee on June 26, 2001, ordered to be reported by the full

Committee on July 25, 2001, and passed in the House of Representatives on July 30, 2001, by voice vote. H.R. 1499 was received in the Senate on July 31, 2001 and was referred to the Committee on Governmental Affairs Subcommittee on Oversight of

Government Management, Restructuring and the District of Columbia on September 10, 2001.

As passed by the House, H.R. 1499 would eliminate the January

1, 1998 high school graduation cut-off date for Program eligibility,

and it would eliminate the requirement that District of Columbia

residents must start college within three years of high school graduation in order to be eligible for the tuition assistance. H.R. 1499

also included a section to prohibit the participation of foreign nationals in the Program.

At a Senate Committee on Governmental Affairs business meeting on November 14, 2001, Senator Voinovich (R–OH) offered, and

the Committee adopted, an amendment in the nature of a substitute to H.R. 1499. On that same date, the Committee ordered

the bill favorably reported, as amended, by voice vote, with no

Members present dissenting. Present were Senators Akaka, Durbin, Cleland, Carper, Carnahan, Thompson, Voinovich, Cochran,

Bunning and Lieberman.

EXPLANATION OF THE BILL AS AMENDED

H.R. 1499, as amended, would eliminate one of the eligibility requirements for District residents: it would void the requirement

4

that they must continue on to college within three years of high

school graduation in order to be eligible for the Program. In order

to allow expansion of the Program to take place over time, the January 1, 1998 high school graduation cut-off date for eligibility in

the College Access Act would be retained, except that all District

residents who are enrolled at an eligible institution as of the date

of enactment of H.R. 1499—including those who graduated high

school prior to 1998—would be eligible for tuition assistance under

the Program, so long as they meet the other applicable eligibility

requirements. This language should not be read to have retroactive

effect; students would not be reimbursed for prior semesters. This

provision would simply enable those who are currently enrolled at

an eligible institution to apply for tuition assistance for semesters

beginning on or after the date of enactment of this Act, no matter

when they graduated from high school.

Eliminating the requirement that students must continue on to

college within three years of high school graduation called for a

change in the residency criteria for eligibility. For otherwise eligible students going on to college within three years of graduating

high school, the College Access Improvement Act would retain the

current requirement under H.R. 1499, as amended, that applicants

prove domicility in the District for one year prior to their freshman

year. Students who waited more than three years to attend college

would be required to prove that they were domiciled in the District

for five years prior to the date of application for tuition assistance

from the Program.

The College Access Improvement Act would also expand the list

of eligible institutions to include private Historically Black Colleges

and Universities nationwide. During the 1999 debates on the College Access Act, the Senate amended the Act to include private

HBCUs, but only those in the States of Maryland and Virginia. A

significant number of District residents who were originally accepted into the Program were later found ineligible because they chose

to attend private HBCUs outside of Maryland and Virginia. The

average tuition at private HBCUs is considerably less than the average tuition at other private colleges and universities, and therefore the $2500 stipend would make more of an impact at HBCUs

than many other private universities. This fact, coupled with the

significant number of District of Columbia students who chose private HBCUs, would make expansion of the Program to include private HBCUs reasonable and appropriate.

The College Access Improvement Act would make certain corrections to the College Access Act. The amended bill retains the language from the House-passed version to prevent foreign nationals

from participating in the Program. The amended bill would also

permit the Program to carry over and use excess administrative

funds from previous years, even though the Committee encourages

the Program to minimize the use of administrative funds so that

any excess would be devoted to grants.

The College Access Improvement Act would also require the District government to establish a dedicated account for the Program.

Any subsequent appropriations, any unobligated balances from

prior fiscal years, and any interest earned from money allocated to

the Program must be kept in that account. The Department of

Education Inspector General reported that because the federal

5

funds allocated to the Program were kept in the District’s general

account, the District was retaining interest earned from the federal

appropriation and using it for unrelated city services. The creation

of this dedicated account requires the District to retain all monies

earned by and allocated to the Program to be used for the Program.

There was concern that the District could be found in violation of

the Anti-Deficiency Act if it allocated more tuition assistance than

was appropriated by Congress for a certain fiscal year. In order to

address this potential issue, H.R. 1499, as amended, would permit

any funds in this dedicated account to be used towards the tuition

costs and related fees of eligible students.

Finally, H.R. 1499, as amended, would include a sense of the

Congress that the District of Columbia may appropriate such local

funds as necessary for the Program. Although this would not require any action by the District of Columbia, the Committee included this in the legislation in order to encourage the local government to provide additional funding to the Program, should it become necessary, rather than requesting additional funding from

Congress. While the Program is currently fully funded through federal appropriations, the Committee strongly urges the District to

begin contributing local funds. This federal-local partnership would

strengthen the Program significantly.

IV. SECTION-BY-SECTION ANALYSIS

Sec. 1. Short title

This section would make the short title of H.R. 1499 the ‘‘District

of Columbia College Access Improvement Act of 2001.’’ The Housepassed version of the bill was entitled the ‘‘District of Columbia

College Access Act Technical Corrections Act of 2001.’’ However,

both versions of H.R. 1499—as amended by the Committee and as

passed by the House—make a number of significant policy changes

to the College Access Act. The Committee voted to reflect this in

the bill’s short title.

Sec. 2. Public School Program

This section would change the student eligibility requirements to

reflect the new circumstances that could face Program applicants

under the expansions provided for in this legislation. Section (A)(i)

would retain the current Program requirement that applicants

must be domiciled in the District for at least twelve months prior

to the commencement of the freshman year at an institution of

higher education, but only for those students who begin their undergraduate course of study within three years of graduation from

a secondary school, or obtaining the recognized equivalent of a secondary school diploma. The three-year period would exclude any

period of service on active duty in the armed forces, or service

under the Peace Corps Act or subtitle D of Title I of the National

And Community Service Act of 1999.

In order to account for the elimination of the requirement that

District of Columbia residents must continue on to college within

three years of high school graduation, section (A)(ii) would establish different eligibility requirements for applicants who are either

re-enrolling after more than a three-year break in their college education or for students who are applying more than three years after

6

high school graduation. These applicants would have to prove

domicility in the District for at least five consecutive years at the

date of application.

Section (B)(i) would retain the current requirement that applicants must have graduated from high school on or after January

1, 1998 to qualify for the Program, with two exceptions, as set forth

in Sections (B)(ii) and (B)(iii).

Section (B)(ii) is intended to address the handful of students who,

for a variety of reasons, may not have received a high school degree

or an equivalent, but have been accepted for enrollment at an eligible institution. Such students include those who were home

schooled or who went on to college before finishing their senior

year of high school. Only applicants who are accepted as freshmen

at eligible institutions on or after January 1, 2002, are eligible

under this section.

Section (B)(iii) would expand the Program to include all students

enrolled at eligible institutions as of the date of enactment of H.R.

1499. Under this subsection, students who graduated prior to 1998

would be eligible for grants under the Program if they attend eligible institutions and can prove domicility in the District of Columbia

for five years prior to application.

Section (C) would prohibit the participation of foreign nationals

in the Program.

All of the changes to student eligibility made in this section

would cover students applying to eligible private colleges and universities, as well as students applying to eligible public colleges

and universities.

Sec. 3. Private School Program

This section would expand the list of eligible private schools to

include private HBCUs nationwide. The Program currently includes only those private HBCUs in the States of Virginia and

Maryland.

Sec. 4. General requirements

This section would clarify the amount of the federal funds appropriated to the Program that the Mayor is permitted to use for administrative purposes. It provides that the Mayor may not use for

administrative purposes more than seven percent of the total sums

appropriated. This section would make clear that the Program, if

necessary, can carry over excess administrative funds from previous years. The term ‘‘administrative funds’’ is defined to mean

‘‘any expenses that are not directly used to pay the cost of tuition

and fees for eligible students to attend eligible institutions.’’

This section also includes a sense of the Congress that the District may appropriate such local funds as necessary for the Program.

Finally, this section would require the District to establish a

‘‘Dedicated Account for the Resident Tuition Support Program,’’

which would consist of the federal funds appropriated to the Program, any unobligated balances from prior fiscal years, and any interest earned in this or any fiscal years. This requirement would

end the District’s current practice of keeping the Program funds in

an unrestricted general acccount, which prevents any interest acVerDate 11-MAY-2000 07:37 Nov 30, 2001 Jkt 099010 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\SR101.XXX pfrm13 PsN: SR101
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crued by the Program funds from being tracked and retained for

the benefit of the Program.

The amended bill, as reported by the Committee, would also

make the long title of the bill, ‘‘To amend the District of Columbia

College Access Act of 1999 to permit individuals who enroll in a institution of higher education more than three years after graduating secondary school and individuals who attend private historically black colleges and universities nationwide to participate in

the tuition assistance program under such Act, and for other purposes.’’ The Committee believes that this reflects the policy changes

in H.R. 1499, as amended.

V. COST ESTIMATE OF THE CONGRESSIONAL BUDGET OFFICE

U.S. CONGRESS,

CONGRESSIONAL BUDGET OFFICE,

Washington, DC, November 20, 2001.

Hon. JOSEPH I. LIEBERMAN,

Chairman, Committee on Governmental Affairs,

U.S. Senate, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 1499, the District of Columbia College Access Improvement Act of 2001.

If you wish further details on this estimate, we will be pleased

to provide them. The CBO staff contact is Paul Cullinan.

Sincerely,

STEVEN LIEBERMAN

(For Dan L. Crippen, Director).

Enclosure.

H.R. 1499—District of Columbia College Access Improvement Act of

2001

Summary: H.R. 1499 would modify the District of Columbia resident tuition support program that was established in 1999. The act

would expand eligibility for tuition support to include District of

Columbia residents who graduated from high school or received the

equivalent of a high school degree before 1998 if they currently are

enrolled in a postsecondary institution and individuals without a

high school diploma or its equivalent who first are accepted as a

freshman at an eligible institution on or after January 1, 2002.

H.R. 1499 also would allow other individuals to participate in the

program after five consecutive years of residing in the District of

Columbia. It also would expand the definition of eligible institution

in the private school program to include all historically black colleges and universities (HBCUs). Finally, the act also would extend

to the tuition support program the same citizenship and immigration status requirements that apply to other federal student assistance programs.

Assuming appropriation of the necessary amounts, CBO estimates that H.R. 1499 would result in additional discretionary

spending of $10 million in 2002 and $35 million over the 2002–

2005 period. H.R. 1499 would not affect direct spending or receipts;

therefore, pay-as-you-go procedures would not apply.

8

H.R. 1499 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA)

and would impose no costs on state, local, or tribal governments.

Estimated cost to the Federal Government: The estimated federal

budgetary impact of H.R. 1499 is presented in the following table.

The costs of this legislation fall within budget function 500 (education, training, employment, and social services).

ESTIMATED BUDGETARY EFFECTS OF H.R. 1499

By fiscal year, in millions of dollars—

2001 2002 2003 2004 2005 2006

SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:

Estimated Authorization Level1 ................................................................... 17 21 34 43 48 0

Estimated Outlays ....................................................................................... 17 21 34 43 48 0

Proposed Changes:

Eliminate post-1997 graduation date requirement for current enrollees:

Estimated Authorization Level ............................................................ 0 8 7 2 3 0

Estimated Outlays .............................................................................. 0 8 7 2 3 0

Modify requirements for students who begin or return to postsecondary

education more than three years after graduation:

Estimated Authorization Level ............................................................ 0 1 2 3 4 0

Estimated Outlays .............................................................................. 0 1 2 3 4 0

Prohibit foreign nationals from participation:

Estimated Authorization Level ............................................................ 0 (2) (2) (2) (2) 0

Estimated Outlays .............................................................................. 0 (2) (2) (2) (2) 0

Expand eligibility of private school program:

Estimated Authorization Level ............................................................ 0 1 1 1 1 0

Estimated Outlays .............................................................................. 0 1 1 1 1 0

Total changes:

Estimated Authorization Level ................................................... 0 10 10 7 8 0

Estimated Outlays ..................................................................... 0 10 10 7 8 0

Spending Under H.R. 1499:

Estimated Authorization Level1 ................................................................... 17 31 44 50 56 0

Estimated Outlays ....................................................................................... 17 31 44 50 56 0

1 The 2001 level is the amount appropriated for that year for the current tuition support program.

2= Less than $500,000.

Components may not sum to totals because of rounding.

The tuition support program operates as a payment to the District of Columbia and is not currently subject to the Federal Cash Management Improvement Act of 1990. The District of Columbia has drawn down the entire appropriation each year, and has actual program spending to date of about one-third of the total funds appropriated.

Basis of estimate: For this estimate, CBO assumes that H.R.

1499 will be enacted in December 2001, and that the necessary

amounts will be appropriated for each year.

Current law

Under current law, the District of Columbia resident tuition support program, administered by the Mayor, provides financial assistance to District of Columbia (D.C.) residents who choose to attend

public colleges outside of D.C., private postsecondary institutions in

D.C. or in one of the surrounding jurisdictions in Maryland or Virginia, or historically black colleges or universities with their main

campus in Maryland or Virginia.

The private-school tuition grants are restricted to nonprofit institutions. The program received annual appropriations for fiscal

years 2000 and 2001 of $17 million, and is authorized through 2005

at such sums as may be necessary. About $9 million in grants were

9

awarded in academic year 2000–2001 with an average of 1,775

grantees in the fall and spring semesters, about one-quarter of

whom were enrolled in private institutions.

Eligibility for the tuition support is limited to individuals who

graduate from high school or receive an equivalent of a secondary

school diploma after January 1, 1998, reside in D.C. for at least 12

consecutive months prior to beginning the freshman year in an eligible institution, and begin their postsecondary school course-ofstudy within three years of their high school graduation. For those

who wish to attend state-supported public institutions outside of

the district, the program provides scholarships equal to the difference between the tuition paid by residents of the state in which

the institution is located and the tuition charged to nonresident

students, but not to exceed $10,000 annually with a lifetime limit

of $50,000. In addition, it provides a $2,500 maximum annual

scholarship for those who choose to attend a private institution in

D.C. or in one of the surrounding jurisdictions in Maryland or Virginia. Private HBCUs with their main campus in Maryland or Virginia are included in the latter classification. The assistance under

each portion of the program is prorated if the student is enrolled

in a less than full-time program. Administrative expenses of operating the program are limited to equal no more than 7 percent of

the total tuition grants.

CBO estimates by academic year 2005–2006, about 7,800 students would receive tuition assistance—5,000 students attending

public institutions and 2,800 students enrolling at private institutions—at a cost (including administrative expenses) of $48 million.

Proposed changes

H.R. 1499 would expand eligibility for tuition support to include

individuals who graduated from secondary schools before 1998 if

they are currently enrolled in school. It also would allow those who

first begin their postsecondary education more than three years

after graduation or who reenroll in school after a three-year break

in education if they resided in the District of Columbia continuously during the previous five years. CBO estimates that the costs

of the provisions are $8 million and $1 million in 2002, respectively; the 2002–2005 respective costs are $20 million and $10 million. The expansion of private school eligibility would cost an estimated $1 million in 2002 and $5 million over the 2002–2005 period. The prohibition on the participation of foreign nationals is estimated to have a negligible budgetary impact.

Eligibility Requirements for Students. To determine the additional number of D.C. residents eligible for the grants, CBO used

the 1998–1999 Integrated Postsecondary Education Data Analysis

System (IPEDS) and the 1996–1997 National Postsecondary Student Aid Survey. Those data show the respective distributions of

first-year D.C. residents enrolled in postsecondary education by institution type and location and all enrollees by state of residence.

To predict enrollment for 2002 and beyond, CBO relied on the

growth rates for the national enrollment projections from the National Center for Education Statistics.

CBO assumed that the changes in the graduation date, residency, and reenrollment requirements would accelerate the rate at

which the program would phase in. These changes would increase

10

the costs of the program by $9 million in 2002 and $30 million over

the 2002–2005 period.

Under current law, CBO assumes that 50 percent of the ultimate

number of participants would receive benefits in 2002, rising to 95

percent by 2005. The elimination of the January 1998 graduation

date requirement would increase the rate at which the program

would phase in. Under H.R. 1499, we expect that about 70 percent

would participate in 2002 and 100 percent beginning in 2005. The

provision would add about 1,500 participants in 2002 and about

400 recipients in 2005, and would cost about $8 million in 2002 and

$20 million over the 2002–2005 period.

H.R. 1499 also would modify the requirement that D.C. residents

first enroll in a postsecondary degree program within three years

of completing secondary school or its equivalent. It would provide

an alternative standard for other students, including those who return to complete their education, that would allow individuals who

live in D.C. for five consecutive years to receive tuition support.

CBO assumes that these changes would affect about 10 percent of

postsecondary students. Assuming their enrollment by institution

type and location mirrors other first-year students from D.C., their

tuition grants would be similar to those students currently eligible

for assistance—in 2002, about $6,700 for public institutions and $2,120 for private schools. These newly eligible students are assumed to enter the program gradually over time, with an additional 180 participants in 2002 and 730 in 2005. The resulting additional costs amount to $1 million in 2002 and $10 million over

the 2002–2005 period.

To determine the average tuition grant for public institutions,

CBO used 1998–1999 IPEDS data to determine the average instate and out-of-state tuition rates by school type. CBO inflated

these rates by the College Board’s average estimate of tuition increases to arrive at the tuition costs for 2002 and beyond. Private

school scholarships are based on the IPEDS data weighted for fulltime and part-time status. The estimated average grant for public

school enrollees grows from $6,700 to $7,720 from 2002 to 2005.

The estimate for private tuition assistance remains at $2,120

throughout the period.

Prohibit Participation by foreign Nationals. H.R. 1499 would require participants in the D.C. resident tuition support program to

meet the citizenship and immigrant status requirements of section

484(a)(5) of the Higher Education Act of 1965. Based on discussions

with the D.C. staff running the program, CBO estimates that this

prohibition would only affect a small number of D.C. residents and

the savings from the provision would be less than $500,000 annually.

Expanded Definition of Private Institutions. H.R. 1499 would

amend the definition of eligible institution for the private school

portion of the D.C. tuition support program to include all private

HBCUs across the country. Under current law, only those private

HBCUs whose main campus is located in Maryland or Virginia are

eligible institutions. CBO estimates the expansion under H.R. 1499

would cost $1 million in 2002 and $5 million over the 2002–2005

period.

Based on data from the United Negro College Fund (UNCF) Statistical Report 2000, about 525 D.C. residents are currently enVerDate 11-MAY-2000 07:37 Nov 30, 2001 Jkt 099010 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\SR101.XXX pfrm13 PsN: SR101
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rolled at private HBCUs outside of Maryland and Virginia, which

were members of the UNCF. CBO’s tabulations of the IPED data

indicated that perhaps an additional five D.C. students were enrolled at nonmember private HBCUs. The UNCF data also indicated that 92 percent of students at its member schools were enrolled full time. CBO assumes that the full-time/part-time enrollment distribution of those students would be similar for D.C. students. Under the proration rules of the program, we estimate the

average grant would be about $2,400. With projected enrollment

growth, CBO estimates that costs (including administrative costs)

would average about $1.4 million during the 2003–2005 period,

with slightly lower costs in 2002.

Intergovernmental and private-sector impact: H.R. 1499 contains

no intergovernmental or private-sector mandates as defined in

UMRA and would impose no costs on state, local, or tribal governments.

Previous CBO estimate: On August 3, 2001, CBO provided an estimate of H.R. 1499 as passed by the House of Representatives.

CBO estimated that version of the legislation would cost $9 million

in 2002 and $30 million over the 2002–2005 period, assuming the

appropriation of the necessary amounts. That version of H.R. 1499

would have eliminated the January 1, 1998, graduation date and

the three-year enrollment requirement completely. In contrast, the

version of H.R. 1499 approved by the Senate Committee on Governmental Affairs would eliminate the graduation date requirement

for current enrollees of postsecondary institutions, but require

other individuals to be domiciled in Washington, D.C., for five consecutive years before being eligible for tuition support.

Both versions would impose certain new citizenship or immigration status requirements, which would have essentially the same

effects on program costs. The House version of H.R. 1499 does not

include the expanded definition of private institution to allow all

HBCUs to participate in the program.

Estimate prepared by: Federal Costs: Paul Cullinan. Impact on

State, Local, and Tribal Governments: Elyse Goldman. Impact on

the Private Sector: Nabeel Alsalam.

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

VI. EVALUATION OF REGULATORY IMPACT

Paragraph 11(b)(1) of rule XXVI of the Standing Rules of the

Senate requires that each report accompanying a bill evaluate the

‘‘regulatory impact which would be incurred in carrying out this

bill.’’ Carrying out H.R. 1499 would have no regulatory impact.

VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with paragraph 12 of rule XXVI of the Standing

Rules of the Senate, changes in existing law made by this bill, as

reported, are shown as follows (existing law proposed to be omitted

is enclosed in brackets, new matter is printed in italic and existing

law, in which no change is proposed, is shown in roman):

DISTRICT OF COLUMBIA COLLEGE ACCESS ACT OF 1999

* * * * * * *

12

SEC. 3. PUBLIC SCHOOL PROGRAM.

(a) * * *

(b) * * *

(c) DEFINITIONS.—

(1) * * *

(2) ELIGIBLE STUDENT.—The term ‘‘eligible student’’ means

an individual who—

ø(A) was domiciled in the District of Columbia for not

less than the 12 consecutive months preceding the commencement of the freshman year at an institution of higher education;

ø(B) graduated from a secondary school or received the

recognized equivalent of a secondary school diploma on or

after January 1, 1998;

ø(C) begins the individual’s undergraduate course of

study within three calendar years (excluding an period of

service on active duty in the Armed Forces, or service

under the Peace Corps Act (22 U.S.C. 2501 et seq.) or subtitle D of title I of the National and Community Service

Act of 1990 (42 U.S.C. 12571 et seq.)) of graduation from

a secondary school, obtaining the recognized equivalent of

a secondary school diploma;¿

(A)(i) for individuals who begin an undergraduate course

of study within three calendar years (excluding a period of

service on active duty in the Armed Forces, or service under

the Peace Corps Act (22 U.S.C. 2501 et seq.) or subtitle D

of title I of the National and Community Service Act of

1990 (42 U.S.C. 12571 et seq.)) of graduation from a secondary school, or obtaining the recognized equivalent of a

secondary school diploma, was domiciled in the District for

not less than 12 consecutive months preceding the commencement of the freshman year at an institution of higher

education; or

(ii) for all other individuals and for those re-enrolling

after more than a 3-year break in their post-secondary education, has been domiciled in the District of Columbia for

at least 5 consecutive years at the date of application;

(B)(i) graduated from a secondary school or received the

recognized equivalent of a secondary school diploma on or

after January 1, 1998; or

(ii) for applicants that did not graduate from a secondary

school or receive a recognized equivalent of a secondary

school diploma, is accepted for enrollment as a freshman at

an eligible institution on or after January 1, 2002; or

(iii) for applicants who graduated from a secondary

school or received the equivalent of a secondary school diploma before January 1, 1998, is currently enrolled at an

eligible institution as of the date of enactment of the District of Columbia College Access Improvement Act of 2001;

(C) meets the citizenship and immigration status requirements described in section 484(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1091(a)(5));

(D) * * *

(E) * * *

13

(F) * * *

* * * * * * *

SEC. 5. PRIVATE SCHOOL PROGRAM.

(a) * * *

(b) * * *

(c) DEFINITIONS.—In this section:

(1) ELIGIBLE INSTITUTION.—The term ‘‘eligible institution’’ means an institution that— (A) * * *

(B) is a private historically black college or university

(for purposes of this subparagraph such term shall have

the meaning given the term ‘‘part B institution’’ in section

322(2) of the Higher Education Act of 1965 (20 U.S.C.

1061(2)) øthe main campus of which is located in the State

of Maryland of Virginia¿. (2) * * *

(3) * * *

(4) * * *

* * * * * * *

SEC. 6. GENERAL REQUIREMENTS.

(a) * * *

ø(b) ADMINISTRATIVE EXPENSES.—The Mayor of the District of

Columbia may not use more than 7 percent of the funds made

available for a program under section 3 or 5 for a fiscal year to pay

the administrative expenses of a program under section 3 or 5 for

the fiscal year.¿

(b) ADMINISTRATIVE EXPENSES.— (1) The Mayor of the District of Columbia may not use more

than 7 percent of the total amount of Federal funds appropriated for the program, retroactive to the date of enactment of

this Act (the District of Columbia College Access Act of 1999),

for the administrative expenses of the program.

(2) DEFINITION.—In this subsection, the term ‘‘administrative

expenses’’ means any expenses that are not directly used to pay

the cost of tuition and fees for eligible students to attend eligible

institutions.

(c) * * *

(d) * * *

(e) It is the sense of Congress that the District of Columbia may

appropriate such local funds as necessary for the Program.

ø(e)¿ (f) FUNDING RULE.—Notwithstanding sections 3 and 5, the

Mayor may use funds made available—

(1) under section 3 to award grants under section 5 if the

amount of funds available under section 3 exceeds the amount

of funds awarded under section 3 during a time period determined by the Mayor; and

(2) under section 3 to award grants under section 5 if the

amount of funds available under section 3 exceeds the amount

of funds awarded under section 3 during a time period determined by the Mayor.

ø(f)¿ (g) MAXIMUM STUDENT AMOUNT ADJUSTMENTS.—The Mayor

shall establish rules to adjust the maximum student amounts described in sections 3(a)(2)(B) and 5(a)(2)(B) for eligible students deVerDate 11-MAY-2000 07:37 Nov 30, 2001 Jkt 099010 PO 00000 Frm 00017 Fmt 6659 Sfmt 6602 E:\HR\OC\SR101.XXX pfrm13 PsN: SR101
14

scribed in section 3(c)(2) or 5(c)(2) who transfer between the eligible

institutions described in section 3(c)(1) or 5(c)(1).

(h) DEDICATED ACCOUNT FOR THE RESIDENT TUITION SUPPORT

PROGRAM.—The District of Columbia government shall establish a

dedicated account for the Resident Tuition Support Program that

shall consist of the Federal funds appropriated to the Program in

this Act and any subsequent appropriations, any unobligated balances from prior fiscal years, and any interest earned in this or any

fiscal years. The funds in this dedicated account may be used to

help pay the cost of tuition and fees for eligible students to attend

eligible institutions if the fiscal year appropriation for that year is

insufficient to cover the cost of tuition for that year.

Æ