July 20, 2008
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Weekly Legislative Highlights: October 29 through November 2, 2007


Updated November 5, 2007

*Positive News for Education Funding
*NCLB Reauthorization Update
*Tax-Exempt Bonds for Schools
*President Signs Higher Ed Extension
*E-rate Funding Window to Open Nov 7th
*House Committee Holds Hearing on Medicaid Regulations; NSBA Submits Comments
*School Nutrition Likely to Come Up Next Week in Senate


Positive News for Education Funding
Congressional leaders met on November 1 to resolve differences between the House- and Senate-passed versions of the proposed spending bill (H.R. 3043) for the Departments of Labor, Health & Human Services, and Education.  The overall bill would provide a total of $150.7 billion in discretionary spending, including $60.7 billion for education programs.  Compared to the House- and Senate-passed versions of the spending bill, the conference report would provide $1.4 billion less for education than the House version, but $594 million more than the Senate bill.  For more funding information, please visit the Federal Funding section of our website.

NCLB Reauthorization Update
This week brought no movement on NCLB in either the House or Senate education committees, although speculation continues that Chairman Miller (D-CA) could introduce a bill for markup soon. In the Senate, the committee has not yet released any further draft language for the key provisions in Titles I and II. For additional updates on NCLB, please visit NSBA’s advocacy website at www.nsba.org/advocacy.

Tax-Exempt Bonds for Schools
On November 1, the Ways and Means Committee reported the “Temporary Tax Relief Act” (H.R. 3996) on a party-line vote.  The legislation would provide a one-year extension for a number of tax provisions, including those for Qualified Zone Academy Bonds (QZABs) and teacher tax credits.  Specifically, the QZAB provisions authorize about $400 million per year in bond authority to states for school repairs and modernization, as well as curriculum development.  The teacher tax credits allow above-the-line deductions of $250 for classroom supplies and instructional materials.  The legislation would also extend enhanced deductions for book and computer donations to schools.

President Signs Higher Ed Extension
President Bush signed the Third Higher Education Extension Act of 2007 (S. 2258) this week, temporarily extending the program until March 31, 2008. While the Senate already passed its own reauthorization of the Higher Education Act (S. 1642), the House has yet to move forward on a bill.

E-rate Funding Window to Open Nov 7th
The Universal Service Administrative Company, the administrator of the E-Rate program, announced that the Program Year 2008 application window will open at noon EST on November 7, 2007 for schools and libraries to begin filing their Form 471 requests to obtain discounts on telecommunications services, Internet access, and internal connections.  The filing window will remain open until 11:59 p.m. Eastern Time on February 7, 2008.

While Program Year 2007 saw the release of an additional $650 million in unused E-Rate funds to applicants, USAC has not yet announced whether funds in addition to E-Rate's $2.25 billion annual cap will be available in the upcoming Program Year 2008.

For more information and updates on the program please go to http://www.usac.org/sl/

House Committee Holds Hearing on Medicaid Regulations; NSBA Submits Comments
On Thursday, the House Oversight and Government Reform Committee held a hearing to examine a range of recent regulatory changes made by the Department of Health and Human Services, including the proposed rule to eliminate Medicaid reimbursement to schools for administrative activities and transportation costs associated with serving students with disabilities.  The hearing included testimony from Ms. Denise Herrmann, a school nurse in the St. Paul Public Schools in Minnesota, who discussed the role of school personnel in providing Medicaid eligibility, outreach, and referral services, and the impact that the rule would have on school-based services.

NSBA submitted comments to the U.S. Department of Health and Human Services opposing the proposed rule (CMS-2287-P).  In its comments, NSBA argued that loss of federal reimbursement for administrative and transportation services would have a devastating impact on schools’ ability to provide needed services to Medicaid-eligible children as well as a significant financial impact on local districts.  NSBA opposes the rule on the grounds that it: 1) contradicts current law 2) exceeds Secretarial authority, and 3) discriminates against schools. 

School Nutrition Likely to Come Up Next Week in Senate
An amendment to establish nationwide school nutrition standards for all foods and beverages sold in schools is likely to come before the Senate next week when lawmakers debate the 2007 Farm bill.  Senator Harkin (D-IA) has proposed offering the amendment that would impose additional regulations on schools outside of the federally subsidized school breakfast and lunch programs. These new standards would apply to all items sold in vending machines, a la carte lines, and other places on campus throughout the school day.

NSBA sent a letter to Chairman Harkin and Ranking Member Chambliss (R-GA) of the Senate Committee on Agriculture, Nutrition and Forestry outlining its opposition to any federal action that would further regulate or codify in statute nutrition standards for foods and beverages in schools and preclude local school boards from addressing nutrition issues in their communities.  In the same letter, NSBA applauded Congressional efforts to support schools in increasing their offering of fresh fruits and vegetables by expanding the Fruit and Vegetable Snack Program so that more schools have an opportunity to participate.  

To read previous editions of NSBA's Weekly Legislative Highlights, please visit our Weekly Legislative Highlights Archive.