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[Senate Report 108-349]
[From the U.S. Government Publishing Office]

108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-349
_______________________________________________________________________

                                     

                                                       Calendar No. 703

    AMENDING THE DISTRICT OF COLUMBIA COLLEGE ACCESS ACT OF 1999 TO 
  PERMANENTLY AUTHORIZE THE PUBLIC SCHOOL AND PRIVATE SCHOOL TUITION 
             ASSISTANCE PROGRAMS ESTABLISHED UNDER THE ACT

                               __________

                              R E P O R T

                                 of the

         COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE

                              to accompany

                                S. 2347

    AMENDING THE DISTRICT OF COLUMBIA COLLEGE ACCESS ACT OF 1999 TO 
  PERMANENTLY AUTHORIZE THE PUBLIC SCHOOL AND PRIVATE SCHOOL TUITION 
             ASSISTANCE PROGRAMS ESTABLISHED UNDER THE ACT

               September 20, 2004.--Ordered to be printed
                   COMMITTEE ON GOVERNMENTAL AFFAIRS

                   SUSAN M. COLLINS, Maine, Chairman
TED STEVENS, Alaska                  JOSEPH I. LIEBERMAN, Connecticut
GEORGE V. VOINOVICH, Ohio            CARL LEVIN, Michigan
NORM COLEMAN, Minnesota              DANIEL K. AKAKA, Hawaii
ARLEN SPECTER, Pennsylvania          RICHARD J. DURBIN, Illinois
ROBERT F. BENNETT, Utah              THOMAS R. CARPER, Delaware
PETER G. FITZGERALD, Illinois        MARK DAYTON, Minnesota
JOHN E. SUNUNU, New Hampshire        FRANK LAUTENBERG, New Jersey
RICHARD C. SHELBY, Alabama           MARK PRYOR, Arkansas

           Michael D. Bopp, Staff Director and Chief Counsel
                    Johanna L. Hardy, Senior Counsel
    David Cole, Professional Staff Member, Oversight of Government 
    Management, the Federal Workforce, and the District of Columbia 
                              Subcommittee
      Joyce A. Rechtschaffen, Minority Staff Director and Counsel
           Donny Williams, Minority Professional Staff Member
  Marianne Clifford Upton, Minority Staff Director and Chief Counsel, 
  Oversight of Government Management, the Federal Workforce, and the 
                   District of Columbia Subcommittee
                      Amy B. Newhouse, Chief Clerk

                                                       Calendar No. 703
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-349

======================================================================

 
    AMENDING THE DISTRICT OF COLUMBIA COLLEGE ACCESS ACT OF 1999 TO 
  PERMANENTLY AUTHORIZE THE PUBLIC SCHOOL AND PRIVATE SCHOOL TUITION 
             ASSISTANCE PROGRAMS ESTABLISHED UNDER THE ACT

                                _______
                                

               September 20, 2004.--Ordered to be printed

                                _______
                                

Ms. Collins, from the Committee on Governmental Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 2347]

    The Committee on Governmental Affairs, to whom was referred 
the bill (S. 2536) to amend the District of Columbia College 
Access Act of 1999 to permanently authorize the public school 
and private school tuition assistance programs established 
under the Act, having considered the same reports favorably 
thereon with an amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................2
 IV. Section-by-Section Analysis......................................3
  V. Evaluation of Regulatory Impact..................................3
 VI. Estimated Cost of Legislation....................................3
VII. Changes in Existing Law Made by the Bill, as Reported............5

                         I. Purpose and Summary

    S. 2347 amends the District of Columbia College Access Act 
of 1999 to reauthorize for five additional years the public 
school and private school tuition assistance programs 
established under the Act. As reported by the Senate Committee 
on Governmental Affairs, S. 2347 amends Public Law 106-98, the 
District of Columbia College Access Act of 1999.

                II. Background and Need for Legislation

    The District of Columbia College Access Act of 1999 
established the District of Columbia Tuition Assistance Grant 
(D.C. TAG) Program for District of Columbia residents. The aim 
of the Program is to afford D.C. high school graduates the 
opportunity to attend publicuniversities at in-state tuition 
rates by paying for the difference between in- and out-of-state tuition 
costs, up to $10,000 per student per school year with a cumulative cap 
of $50,000 per student. In addition, the law allows D.C. residents 
attending Historically Black Colleges and Universities (HBCUs) 
nationwide and private schools in Virginia and Maryland to receive 
tuition grants under the program of $2,500 per student per school year 
with a cumulative cap of $12,500 per student.
    The statute creating the program was amended in 2002 with 
the passage of the District of Columbia College Access 
Improvement Act of 2001. That Act amended the program 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 
regarding the use of administrative funds for the District of 
Columbia Tuition Assistance Program.\1\
---------------------------------------------------------------------------
    \1\ Senate Report 107-101, pp. 1-2.
---------------------------------------------------------------------------
    While the program does not require that students meet a 
means test to qualify for the scholarships, the authorizing 
legislation does allow the Mayor to apply a means test should 
the number of applicants exceed the amount of funding provided 
for the program.
    Since its inception, the D.C. TAG Program has disbursed 
more than $63 million dollars to more than 6,500 students, many 
of whom are the first in their family to attend college. All 
current high school students who are D.C. residents are 
eligible for these scholarships and participation is 
increasing.
    The number of D.C. high school graduates continuing on to 
college increased from 1,750 in 1998 to 2,230 in 2002, a 28% 
increase since the Program was created. This represents the 
highest known level at which District students have attended 
college.
    The original legislation P.L. 106-98 authorized funding for 
the Program for five years (FY00-FY05). S. 2347 extends the 
authorization for five additional years.

                        III. Legislative History

    S. 2347, on April 26, 2004, a permanent reauthorization of 
the District of Columbia College Access Act of 1999, was 
introduced by Senator Voinovich and cosponsored by Senators 
Durbin, Jeffords, and Lieberman, and was referred to the 
Governmental Affairs Committee. On May 11, 2004, the 
Subcommittee on Oversight of Government Management, the Federal 
Workforce, and the District of Columbia favorably polled S. 
2347 to the full Committee.
    On July 21, 2004 by voice vote, the Committee on 
Governmental Affairs ordered S. 2347 reported favorably with an 
amendment offered by Senators Voinovich and Collins that 
modified the reauthorization from a permanent reauthorization 
to a 5-year extension of the Program. Senators present: 
Collins, Voinovich, Specter, Fitzgerald, Lieberman, Akaka, 
Durbin, Carper, and Lautenberg.

                    IV. Section-by-Section Analysis

    SECTION 1. 5-YEAR REAUTHORIZATION OF TUITION ASSISTANCE PROGRAMS

    This section amends the D.C. College Access Act of 1999 by 
striking ``each of the five succeeding fiscal years'' and 
inserting ``each of the 10 succeeding fiscal years'' in section 
3, the public school program section, and in section 5, the 
private school section.

                   V. 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.''
    The enactment of this legislation will not have significant 
regulatory impact.

                   VI. Estimated Cost of Legislation

S. 2347--District of Columbia College Access Act of 2004

    Summary: S. 2347 would reauthorize the District of Columbia 
(D.C.) resident tuition support program that was established in 
1999. The program assists D.C. students who graduate from D.C. 
high schools and attend college by paying he difference between 
in-state and out-of-state tuition a public institutions (up to 
$10,000 per year) or up to $2,500 annually for those attending 
private schools.
    Assuming appropriation of the necessary amounts, CBO 
estimates that implementing S. 2347 would cost $106 million 
over the 2006-2009 period. The bill would not affect direct 
spending or receipts.
    S. 2347 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no cost on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
federal budgetary impact of S. 2347 is shown in the following 
table. The costs of this legislation fall within budget 
function 500 (education, training, employment, and social 
services).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                                 -----------------------------------------------
                                                                   2004    2005    2006    2007    2008    2009
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending under current law:
    Estimated authorization level\1\............................      17      17       0       0       0       0
    Estimated outlays...........................................      17      17       0       0       0       0

Proposed Changes:

Public-institution tuition grants:
    Estimated authorization level...............................       0       0      20      22      23      25
    Estimated outlays...........................................       0       0      20      22      23      25
Private-institution tuition grants:
    Estimated authorization Level...............................       0       0       2       2       2       2
    Estimated outlays...........................................       0       0       2       2       2       2
Administrative costs:
    Estimated authorization level...............................       0       0       2       2       2       2
    Estimated outlays...........................................       0       0       2       2       2       2
Total changes:
    Estimated authorization level...............................       0       0      24      26      28      29
    Estimated outlays...........................................       0       0      24      26      28      29
Spending under S. 2347:
    Estimated authorization level\1\............................      17      17      24      26      28      29
    Estimnated outlays..........................................      17      17      24      26      28      29
----------------------------------------------------------------------------------------------------------------
\1\ The 2004 level is the amount appropriated for that year for the current tuition support program. The 2005
  level is the amount authorized for that year for the current tuition support program.

Note.--Components may not sum to totals because of rounding.

    Basis of estimate: For this estimate, CBO assumes that S. 
2347 will be enacted this year and that the necessary amounts 
will be appropriated for each year beginning with fiscal year 
2006.

                              CURRENT LAW

    Under current law, the D.C. resident tuition support 
program, administered by the Mayor, provides financial 
assistance to 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 
(HBCUs). The private-school tuition grants are restricted to 
nonprofit institutions. The overall program is currently 
authorized through 2005.
    The program received appropriations of $17 million annually 
for fiscal years 2000 through 2004, and is authorized to 
receive $17 million in appropriations in 2005. The amounts 
appropriated are paid in full to the District each year, 
regardless of when the grants are actually disbursed. For 
academic year 2003-2004, 4,086 students received grants 
averaging $5,377, for a total of $22 million. (The program drew 
on unused funds from previous years to make those grants.) The 
public school program awarded 3,111 grants averaging about 
$6,400; students in private institutions represented an 
additional 975 grantees with the average award amounting to 
about $2,100.
    Eligibility for the tuition support is limited to D.C. 
residents who graduate from high school or receive the 
equivalent of a secondary school diploma and reside in D.C. for 
at least 12 consecutive months prior to beginning the freshman 
year in an eligible institution. 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--with a lifetime limit of $12,500--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 are included regardless of where they are 
located. 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 no more than 7 percent of the total tuition grants.

                           PROPOSED EXTENSION

    S. 2347 would authorize through fiscal year 2010 the 
appropriations of such sums as may be necessary for the D.C. 
resident tuition support program. Based on data from the 
administrators of the program, the Bureau of the Census, and 
the U.S. Department of Education, CBO projects that about 3,725 
students would receive tuition assistance during academic year 
2005-2006 and that this number would climb to over 4,100 
students by the 2008-2009 academic year, if sufficient funds 
were available. CBO projects that the proportion of students 
attending public institutions would remain near its current 76 
percent share. Assuming that out-of-state tuition at public 
institutions continues to rise at rates somewhat above overall 
inflation, CBO estimates the average public tuition assistance 
payment would rise from $6,925 in 2005-2006, to $7,790 by 2008-
2009. The average grant in the private school program would 
grow more slowly--from $2,230 in 2005-2006 to nearly $2,400 by 
2008-2009--because many grantees would be at the $2,500 
maximum. Consequently, CBO estimates that the amount spent for 
grants would grow from about $22 million for the 2005-2006 
academic year to about $27 million for the 2008-2009 academic 
year, assuming appropriation of the necessary funds. Assuming 
that administrative costs equal 7 percent of the total costs, 
those expenses would climb from $1.7 million in 2006 to $2.1 
million in 2009.
    Intergovernmental and private-sector impact: S. 2347 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Previous CBO estimates: On July 30, 2004, CBO transmitted a 
cost estimate for H.R. 4012, as ordered reported by the Senate 
Committee on Governmental Affairs on July 21, 2004. It also 
would authorize the appropriation of such sums as may be 
necessary for the tuition support program through fiscal year 
2010.
    On April 30, 2004, CBO transmitted a cost estimate for H.R. 
4012, as ordered reported by the House Committee on Government 
Reform on April 1, 2004, which would permanently authorize the 
appropriation of such sums as may be necessary for the program. 
The cost estimates for the two versions of H.R. 4012 and S. 
2347 are identical for the 2006-2009 period.
    Estimate prepared by: Federal Costs: Justin Humphrey. 
Impact on State, Local, and Tribal Governments: Sarah Puro. 
Impact on the Private Sector: Nabeel Alsalam.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with rule XXVI paragraph 12 of the Standing 
Rules of the Senate, the following provides a print of the 
statute or the part or section thereof to be amended or 
replaced (existing law proposed to be omitted is enclosed in 
black brackets, new matter is printed in italic, existing law 
in which no change is proposed is shown in roman):

                       DISTRICT OF COLUMBIA CODE

                   TITLE 38. EDUCATIONAL INSTITUTIONS

                 Subtitle IX. College Access Assistance

                 CHAPTER 27. COLLEGE ACCESS ASSISTANCE

Sec. 38-2702. Public school program

    (a) Grants.
          (1) In general.--From amounts appropriated under 
        subsection (i) of this section the Mayor shall award 
        grants to eligible institutions that enroll eligible 
        students to pay the difference between the tuition and 
        fees charged for in-State students and the tuition and 
        fees charged for out-of-State students on behalf of 
        each eligible student enrolled in the eligible 
        institution.

           *       *       *       *       *       *       *

    (i) Authorization of Appropriations.--There are authorized 
to be appropriated to the District of Columbia to carry out 
this section $12,000,000 for fiscal year 2000 and (subject to 
Sec. 38-2706) such sums as may be necessary for [each of the 
five succeeding fiscal years] each of the 10 succeeding fiscal 
years. Such funds shall remain available until expended.

           *       *       *       *       *       *       *

Sec. 38-2704. Private school program

    (a) Grants.
          (1) In general.--From amounts appropriated under 
        subsection (f) the Mayor shall award grants to eligible 
        institutions that enroll eligible students to pay the 
        cost of tuition and fees at the eligible institutions 
        on behalf of each eligible student enrolled in an 
        eligible institution. The Mayor may prescribe such 
        regulations as may be necessary to carry out this 
        section.

           *       *       *       *       *       *       *

    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to the District of Columbia to carry out 
this section $5,000,000 for fiscal year 2000 and (subject to 
Sec. 38-2706) such sums as may be necessary for [each of the 
five succeeding fiscal years] each of the 10 succeeding fiscal 
years. Such funds shall remain available until expended.

                                  
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