President to President
Vol. 3, No. 22 • June 17-21, 2002 

• Supreme Court Rules For Gonzaga University
  
  
• Senate Committee Approves Bill With Tax Incentives for Charitable Giving
  
  
• Welfare Reauthorization May Affect Educational Opportunities For Low-Income People
  
  
• Associations Differ on SEVIS Implementation
  
  
• Background on Bioterrorism Law Now Available
  
  

We celebrated a major victory on Thursday, as the U.S. Supreme Court issued a 7-2 decision clarifying that students and their parents cannot sue educational institutions under a federal law that protects the privacy of student educational records.
    In Gonzaga University vs. John Doe, a graduate asserted he could not find a teaching job because Gonzaga officials told representatives of Washington state's teacher-certification office that he had been accused of sexually assaulting another student. No charges were brought against Doe, and the female student said she had not been sexually assaulted. The former student maintained that, in revealing the allegation, Gonzaga violated the Family Educational Rights and Privacy Act (FERPA), more commonly known as the Buckley Amendment.
    The American Council on Education and other organizations filed an amicus brief with the Supreme Court on behalf of Gonzaga.
    The court's decision does not eliminate the "Buckley" requirements, nor does it mean that colleges can share personal information on students. In addition, the enforcement powers of the Department of Education remain unchanged. But it does mean that individuals cannot sue educational institutions for damages under this law.
    This is a major victory for higher education, as it will shield colleges from a new stream of liability claims and litigation. A copy of the Supreme Court decision can be found at http://a257.g.akamaitech.net/7/257/2422/20jun20021230/www.supremecourtus.gov/opinions/01pdf/01-679.pdf.

The Senate Finance Committee approved legislation on Tuesday that includes more than $5.5-billion in tax benefits over the next six years to encourage charitable giving to organizations including colleges, universities, and other non-profit groups. The Senate bill enjoys widespread support in the higher education community.
    Among the key provisions is the so-called "IRA Rollover," which will allow people age 70 1/2 and older to donate money from their Individual Retirement Accounts to charity without incurring negative tax consequences. This provision would take effect in the 2003 tax year.
    In addition, the bill will allow taxpayers who do not itemize on their tax returns to deduct charitable donations from their taxable income. That provision, however, would apply only to the 2002 and 2003 tax years, because some senators expressed concern about the cost of the deduction and wondered whether it would really do much to encourage giving. The legislation requires the treasury secretary to complete a study by the end of 2003 on the effect of this provision.
    The legislation now moves to the Senate floor, where consideration could be delayed because of the backlog of bills waiting for attention. If passed by the Senate, the bill would move to conference with the House, before being sent to the president's desk for signature.
    We are extremely pleased the Finance Committee has acted on this bill and will encourage the Senate to consider it as soon as possible. We will keep you posted as the process moves forward.

Under the Clinton Administration's 1998 welfare reform, the ability of welfare recipients to pursue education is sharply limited. In the recent effort to reauthorize this law, educational options could be either expanded or limited further.
    The House of Representatives has already passed the Temporary Assistance for Needy Families (TANF) Act, H.R. 4737, which closely parallels the Bush administration's proposal for welfare reform. This bill would go beyond current law to impose even stricter work requirements on welfare recipients, making it more difficult to participate in postsecondary and vocational education.
    Multiple welfare reform bills are currently circulating in the Senate, with the Senate Finance Committee expected to mark up a reauthorization measure as early as next week.
    The higher education community seeks to expand the education component of the program. I have sent several letters to Members of Congress, and have made the following recommendations on behalf of the higher education community:

• Allow at least 24 months of education and/or training to be counted as an approved work activity;
• Include all higher education programs, not just vocational training as at present, in the list of education activities that can count towards a recipient's work requirement;
• Eliminate the cap on the percentage of a state's welfare recipients who are able to participate in educational activities; and
• Do not count time spent on education and training against lifetime or consecutive benefit time limits.