South Carolina Independent Colleges and Universities

A Voice for Independent Higher Education in South Carolina

SCICU President & CEO
Welcome

Education reform top issue for 2019 SC General Assembly session

By

SCICU President and CEO Jeff Perez

Jeff Perez
SCICU President and CEO

SCICU legislative outlook from President and CEO Jeff Perez —

Education reform will be at the top of the SC General Assembly’s agenda during the 2019 legislative session, as will how to spend an additional $1 billion. Including independent higher education in these discussions will be a major part of SCICU’s 2019 advocacy efforts.

In recent sessions the General Assembly has tended to focus on one major issue. Last year, it was addressing SCANA and Santee Cooper’s abandonment of the multi-billion dollar VC Summer nuclear power generation plant. The session before the General Assembly was absorbed with passing an increase to the state gas tax.

There is wide agreement that reforming K-12 education will be at the top of this session’s priorities. During a pre-session meeting with reporters, senators and house members all mentioned the importance of addressing education needs. And in his inaugural address Governor McMaster stated: “We must also commit ourselves to providing the highest quality education for South Carolina’s children if we are to continue to compete in the future for jobs and economic prosperity.” And later, “Being perceived as weak in education is not good. But, being perceived as not committed to fixing it is disastrous. We will fix it…”

Our job will be to work for inclusion of higher education in this education discussion. A focus during this session will be S.298, the “Higher Education Opportunity Act,” sponsored by Senators Vincent Sheheen, Harvey Peeler and others. Sen. Sheheen first introduced this bill last year, and there is broad agreement it will receive significant attention. There is a lot in the bill, including allocating internet sales tax revenues for a special fund for the public universities, in return for which they must cap tuition. It would also bring South Carolina back to a 7-point GPA system, which would reduce the number of students who currently qualify for state merit scholarships. It also increases the CHE Needs-based Scholarship program (of which independent colleges and universities receive 16.5 percent), and setting it and the Tuition Grants Program on a schedule whereby they would receive annual increases matching the Higher Education Price Index (HEPI) but no more than 2.75 percent in a year.

This bill is at square one – there will be hearings held that will no doubt result in revisions to S.298. SCICU will be following this bill very closely to ensure that it properly reflects the needs of students attending independent colleges and universities in South Carolina.

Also driving this year’s session is $1 billion dollars – that’s how much additional funding the General Assembly has at its disposal. About half is in non-recurring “one-time” monies that must be spent on facilities or debt reduction. The other half is recurring – once it’s in the budget, it stays in future budgets. Legislators will tell you having more money is harder than a deficit – it’s much easier to say “no” to everyone than try to decide who gets the additional resources. How that $1 billion will be spent will occupy much of the legislators’ attention.

There’s also a new leadership position in the Senate. Because of a change in the state constitution approved by voters in 2012, the lieutenant governor is no longer elected, and thus cannot serve as the President of the Senate and rule on points of order and other procedural matters.

Under new rules approved by the Senate, the position of President of the Senate will now be held by a senator, and the position of President Pro Tempore, previously held by Sen. Hugh Leatherman, has been eliminated. Under the new rules the President of the Senate cannot be a committee chair. Sen. Leatherman opted to remain chairman of the powerful Finance Committee. Sen. Harvey Peeler was unanimously elected the first President of the Senate, and will have a role in the appointments to state boards and commissions.

The wild card in this year’s session may be Santee Cooper, the other owner of the abandoned VC Summer nuclear plant. While the General Assembly no longer needs to deal with the sale of SCANA, the governor would like to sell state-owned Santee Cooper, which holds $4 billion in debt from the failed plant. While the General Assembly has set criteria for weighing proposed buyers, the fate of Santee Cooper employees, and the utility’s ownership of Lake Marion and Lake Moultrie, would have to be addressed.

I look forward to representing SCICU this session and will provide you with updates as the session progresses.

SCICU students write thousands of letters to SC General Assembly supporting funding of tuition grants and merit scholarships

By

2018 SC Independent College and University Day Participants
South Carolina State House
Students and sponsors from SCICU member colleges and universities

COLUMBIA, SC — One of the most effective advocacy initiatives in Columbia is led by students of SCICU colleges and universities.

During each session of the General Assembly thousands of SCICU college and university students send letters to legislators, sharing the importance of state need-based tuition grants and merit-based scholarships, upon which they rely to complete their degrees.

The SCICU legislative student letter-writing campaign impresses upon General Assembly members how much students at SC private colleges and universities depend on state tuition support. Over two-fifths of the 31,000 undergraduate students attending SCICU member colleges and universities received tuition grants during the 2016-17 academic year. Almost one-third were awarded state merit scholarships (Palmetto Fellows, LIFE, HOPE, and Tuition Assistance).

During the 2018 session, students sent more than 7,300 personal letters to members of the General Assembly. Based on the feedback of campus legislative coordinators, even more letters are expected to flood legislative offices during the 2019 session.

Last year Anderson University led the charge with 1,762 letters written. With 100 percent of their tuition grant recipients writing letters to their legislators, Allen University and Erskine College again tied for highest participation honors.

Members of the General Assembly regularly voice their appreciation for students’ thank-you letters.

During the December 2018 Campus Legislative Coordinators Kickoff Rally, SC Rep. Chandra Dillard (D-Greenville) counseled the coordinators: “Please do not underestimate the impact of thousands of students’ letters sent to legislators saying the same thing about tuition grants and state merit scholarships. This singular message will get the attention of legislators.”

Dillard also warned that state legislators will have a full plate and keeping them focused on student needs should be a top priority.

“Getting the attention of your legislators is important, as there are many other major issues lining up for the 2019 session,” said Dillard.

“So many of our students participate in the letter-writing campaign because they know first-hand that state support for them is the difference between staying focused on academic success and being distracted by financial concerns,” said Jeff Perez, SCICU president and CEO.

2019 Legislative Plan for State Financial Aid Funding

SCICU has established the following 2019 General Assembly priorities related to funding financial aid for in-state students attending private colleges in South Carolina:

  • Increase the maximum tuition grant per student to $3,450 ($150 increase over previous year), which would require an additional $1.903 million in state funding for the SC Higher Education Tuition Grants Commission.
  • Full funding for state merit scholarships (Palmetto Fellows, LIFE, HOPE, and Lottery Tuition Assistance) to all eligible students.
  • $1.5 million increase in need-based scholarships for the SC Commission on Higher Education (CHE). If CHE’s request for additional funding is approved, approximately $247,500 in additional funding would flow to the Tuition Grants Commission.

Click here to download SCICU’s 2019 SC Legislative Priorities and Quick Facts.

2019 Independent College and University Day

The annual letter-writing campaign will wrap up prior to the 2019 Independent College and University Day scheduled for April 10. On this day, students from SCICU’s 20 member colleges and universities will gather for a rally at the State House and meet with their legislators.

SC independent colleges and universities working to keep tuition affordable

By

Rep. Chandra Dillard urged everyone to keep tuition affordability front and center during the 2019 session of the SC General Assembly.

Rep. Chandra Dillard

COLUMBIA, SC — South Carolina House Representative Chandra Dillard urged advocates for South Carolina’s independent colleges and universities to keep tuition affordability front and center during the upcoming session of the General Assembly.

During her remarks at the December 7 Campus Legislative Coordinators Kickoff in Columbia, hosted by South Carolina Independent Colleges and Universities, Dillard (D-Greenville) stressed the value of the annual letter-writing campaign for highlighting the importance of state funding for need-based tuition grants and merit scholarships.

“Please do not underestimate the impact of thousands of students’ letters sent to legislators saying the same thing about tuition grants and state merit scholarships. This singular message will get the attention of legislators,” said Dillard.

SCICU President Jeffrey Perez noted the importance of state support for the nearly three-quarters of students at independent colleges and universities who call South Carolina home.

“About 50 percent of our students are eligible for federal Pell Grants, meaning they are among the most economically disadvantaged, and fully 95 percent receive some form of financial aid,” said Perez. “So many of our students participate in the letter-writing campaign because they know first-hand that state support for them is the difference between staying focused on academic success and being distracted by financial concerns.”

Dillard also warned that state legislators will have a full plate and keeping them focused on student needs should be a top priority.

“Getting the attention of your legislators is important, as there are many other major issues lining up for the 2019 session,” said Dillard.

The annual letter-writing campaign is timed to coincide with the cycle of budget hearings in the South Carolina General Assembly. Legislators will receive thank-you letters from students while they are deciding upon fiscal year 2019-2020 funding for tuition grants and state merit scholarships.

2018 Letter-Writing Campaign Results

Allen University received the highest participation award for the 2018 SCICU Legislative Letter-Writing Campaign.

(L-R) Dr. L. Jeffrey Perez, SCICU President; Lola Kennedy, Allen University Director of Financial Aid.

Erskine College received the highest participation award for the 2018 SCICU Legislative Letter-Writing Campaign.

(L-R) Dr. L. Jeffrey Perez, SCICU President; Jordan Kirby, Erskine College Financial Aid Counselor; Amanda Taylor, Erskine College Director of Financial Aid.


Over 7,300 letters were written by SC independent college students to SC legislators in last year’s letter-writing campaign. With 1,762 letters written, Anderson University won the contest for most letters written to legislators.

Erskine College and Allen University again tied for the highest percentage of tuition grants recipients writing thank-you letters to legislators. Both Erskine and Allen are to be commended for having 100% of their respective tuition grants recipients participating in the 2018 Legislative Letter-Writing Campaign.

2019 Legislative Plan for State Financial Aid Funding

During the meeting, Perez presented the following 2019 legislative priorities related to state-funded aid for in-state students attending private colleges in South Carolina:

  • Increase the maximum tuition grant per student to $3,450 ($150 increase over previous year), which would require an additional $1.903 million in state funding for the SC Higher Education Tuition Grants Commission.
  • Full funding for state merit scholarships (Palmetto Fellows, LIFE, HOPE, and Lottery Tuition Assistance) to all eligible students.
  • $1.5 million increase in need-based scholarships for the SC Commission on Higher Education (CHE). If CHE’s request for additional funding is approved, approximately $247,500 in additional funding would flow to the Tuition Grants Commission.

SCICU’s 2019 Legislative Strategic Plan and Legislative Priorities and Quick Facts are available on the SCICU website.

2019 Independent College and University Day

The annual letter-writing campaign will wrap up prior to the 2019 Independent College and University Day scheduled for April 10. On this day, students from SCICU’s 20 member colleges and universities will gather for a rally at the State House and meet with their legislators.

Increases for Independent Higher Ed Programs Preserved in SC FY 2018-19 Budget

By

COLUMBIA, SC — On Friday, July 6, Governor Henry McMaster vetoed 42 items in the $8.2 million general fund budget for the fiscal year beginning July 1. None of the vetoes affected the funding increases for student financial aid and other programs appropriated by the General Assembly. The House and the Senate will return to Columbia in September to address the vetoes.

For the higher education community, the final budget was a compromise that balanced little additional funding in the House version with a more robust approach by the Senate.

Programs that significantly impact students attending independent colleges and universities did, in the end, receive House and Senate approval for increased funding over the previous year.

Specific budget items impacting funding for independent higher education include the following:

  • Tuition Grants – Increase of $1,169,992
  • Commission on Higher Education’s need-based grant program – Net additional increase of $1,612,922 of which approximately 16.5% or ($266,122) is designated for Tuition Grants
  • PASCAL (Partnership Among South Carolina Academic Libraries) – $1,500,000
  • SC Merit Scholarship program – Full-funding at over $350 million

The Tuition Grants Commission voted to use the additional $1.44 million to increase the maximum student grant by $100 to $3,300 for the 2018-19 academic year. This is the largest maximum grant available to SC Tuition Grant recipients since the grant became level-funded in 2000.

SCICU thanks it many advocates for their efforts in helping to increase the amount of financial aid that will be awarded to South Carolina students who attend a private non-profit college or university. A more complete report will be provided to the SCICU Public Policy Committee at their next committee meeting on July 17 at 10:00 a.m.

House, Senate Send FY 2019 Budget to Governor

By

On the last day of the 2018 legislative session, the House and the Senate adopted the report of the Budget Conference Committee and sent the $8.2 million general fund budget for the fiscal year beginning July 1 to Governor Henry McMaster.

For the higher education community, the final budget was a compromise that balanced little additional funding in the House version with a more robust approach by the Senate.

Programs that significantly impact students attending independent colleges and universities did, in the end, receive House and Senate approval for increased funding over the previous year.

Specific budget items impacting funding for independent higher education include the following:

  • Tuition Grants – Increase of $1,169,992
  • Commission on Higher Education’s need-based grant program – Net additional increase of $1,612,922 of which approximately 16.5% or ($266,122) is designated for Tuition Grants
  • PASCAL (Partnership Among South Carolina Academic Libraries) – $1,500,000
  • SC Merit Scholarship program – Full-funding at over $300 million

Barring any vetoes of these key-line items by Governor McMaster, the Tuition Grants Commission will determine how an additional $1.44 million in FY 2019 can help students attending South Carolina’s independent colleges and universities. Presently, the maximum Tuition Grant award is $3,200 per year.

The Governor will have 5 days (excluding Sunday) to approve the budget or return it to the House with line-item vetoes. The House and Senate separately will review the vetoes. Both chambers must achieve a two-thirds majority to override each line-item veto. Depending on the urgency of the vetoes, the General Assembly may defer returning to Columbia until a later date.

SCICU staff is confident that the hard-fought budget increases will survive any vetoes. SCICU thanks it many advocates for their efforts in helping to increase the amount of financial aid that will be awarded to South Carolina students who attend a private non-profit college or university. A more complete report will be provided to the SCICU Public Policy Committee at their next committee meeting on July 17 at 10:00 a.m.

SC Budget Conference Committee Sends Recommendations to House for Debate

By

The Conference Committee considering the FY 2018-19 state budget finished its work late Tuesday night (June 26), and the House is prepared to begin debate on the committee’s recommendations on Thursday, June 28.

Higher education funding recommendations from the Conference Committee include the following:

  • Tuition Grants – Increase of $1,169,992 over previous year (FY 2017-18) funding
  • Commission on Higher Education’s need-based grant program – Net additional increase of $1,612,922 over previous fiscal year funding
  • PASCAL (Partnership Among South Carolina Academic Libraries) – $1,500,000
  • SC Merit Scholarship program – Full-funding

If the Conference Committee budget is adopted, the Tuition Grants Commission will determine how an additional $1.44 million in FY 2019 can help students attending South Carolina’s independent colleges and universities. Presently, the maximum Tuition Grant award is $3,200 per year.

The House and the Senate still must agree on a FY 2018-19 budget to send to Governor McMaster. The Governor will have 10 days to approve the budget or return it to the House with line-item vetoes. The House and Senate separately will review the vetoes. Both chambers must achieve a two-thirds majority to override each veto. If the budget legislative process extends beyond July 1, the state will continue to operate under the spending levels in the FY 2017-18 budget until the FY 2018-19 budget is ratified.

SCICU staff is confident that the hard-fought budget increases will survive the final votes and vetoes. A more complete report will be provided to the SCICU Public Policy Committee once the General Assembly adjourns for the year.

Federal Higher Education Update – May 24, 2018

By

Higher Education Reauthorization Act

The House Committee on Education and the Workforce approved a bill to reauthorize the Higher Education Act in December. Committee Chairwomen Virginia Foxx (NC) is trying to secure enough votes to bring the bill to the House floor for a vote.

As adopted by Rep. Foxx’s committee, Promoting Real Opportunity, Success and Prosperity through Education Reform (PROSPER) Act includes some very positive provisions such as creating a $300 Pell Grant bonus for students who take 30 credits during an academic year and repealing regulations on credit hour, state authorization, and state authorization of distance education, and eliminating origination fees on student loans.

It also includes many program changes that have a significant impact on institutions and students. For example, the bill would:

  • Eliminate SEOG and put the money into Federal Work Study through a new distribution formula.
  • Make changes to loan limits, including imposing restrictive new annual loan limits on graduate students and parents.
  • Structure institutional eligibility to Title IV aid on a program-by-program basis based on each program’s loan repayment rate, rather than through broad institutional eligibility that currently exists.

Other major changes include a restructuring of student loan terms and conditions. This includes eliminating all current loan forgiveness and income-based repayment programs for new student borrowers in favor of two options with limitations on the total amount of interest that can accrue.

While the Committee has done some thoughtful work in assembling its bill, the legislation needs serious revisions if it is going to be effective in helping, and not hurting, middle and low income students attend and complete college and to reduce, and not increase, regulatory red tape. In its current form, the bill would drive up the cost of college for students and dramatically increase the regulatory burden on colleges due to the new requirement that each major on campus must go through an annual test to determine if students can use federal loans and grants to major in that field.

In a letter dated May 18, 2018, SCICU asked each member of the SC House delegation to work with us and national organizations such as NAICU to revise the most egregious parts of the PROSPER Act to ensure that the very best interests of students are served to the greatest extent possible.

In the Senate, Health, Education, Labor and Pensions Committee (HELP) Chairman Lamar Alexander (R-TN) and Ranking Member Patty Murray (D-WA) have held a series of four committee hearings to address several HEA themes and ideas, identify a procedural framework for moving forward with a bipartisan bill, and request feedback from higher education community stakeholders. They are hoping to produce a bipartisan bill for release later this year.

FY 2018 Omnibus Budget

In March, Congress finalized FY 2018 spending with an omnibus bill that provides significant increases for the student aid programs and student loan and departmental management issues. Congress rejected the administration’s budget request for the Department of Education by setting the following funding levels for student aid:

  • Pell Grant: $175 increase in the maximum grant, from $5,920 to $6,095.
  • Supplemental Educational Opportunity Grant (SEOG): $107 million increase to $840 million.
  • Federal Work Study: $140 million increase to $1.13 billion.
  • TRIO: $60 million increase to $1.01 billion.
  • GEAR UP: $10 million increase to $350 million.

It is important to point out that the $175 increase in the Pell Grant maximum is a discretionary increase in the maximum grant, meaning it is fully funded by appropriations. This is significant because it raises the baseline for funding the program, making it difficult to cut in future years.

Other programs of interest to private colleges also fared well in the final spending bill. All of the Strengthening Institutions Grants programs were increased, including a $12 million increase for Title III-Part A, to $99 million; a $15 million increase for Hispanic Serving Institutions, to $123 million; a $1.3 million increase for the portion of funding for Historically Black Colleges and Universities (HBCUs) that is funded through appropriations; and a $35 million increase for HBCU graduate institutions, to $280 million. The Work Colleges program was increased by $1.2 million, to $9.6 million.

For an in-depth look at the FY 2018 budget, follow the link to NAICU’s March 23 issue of Washington Update.

FY 2019 Omnibus Budget

On February 12, President Trump submitted his FY 2019 budget to Congress, proposing massive cuts to the federal student aid programs. If enacted, low-income students are going to have a much more difficult time affording a college education. Budget reductions in the area of higher education include:

  • Supplemental Educational Opportunity Grants (SEOG): The budget proposes to eliminate SEOG, a cut of $733 million, arguing the program is duplicative of Pell, and does not target aid to the neediest students.
  • Federal Work Study (FWS): The budget proposes to cut $490 million from FWS, leaving $500 million for a newly restructured focus on job training, not financial aid.
  • TRIO and GEAR UP: The budget proposes to eliminate GEAR UP funding, a cut of $340 million, but incorporate its activities into TRIO, which is level-funded at $950 million for a new state distribution formula.
  • Subsidized Loans: The budget proposes to eliminate the in-school interest on student loans taken out by low-income students.
  • Institutional risk-sharing: The budget mentions support for institutional risk-sharing on loan repayment rates, but does not include any details.

House and Senate committees will continue work on the FY 2019 budget throughout the summer and into fall. Hopefully, the resulting appropriations for higher education programs will resemble those in the FY 2018 budget and not President Trump’s recent executive budget. The 2019 fiscal year begins October 1, 2019.