Financial update fy 21 and fy 21 23 biennium

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Financial Update: FY'21 and FY'21-'23 Biennium

September 17, 2020 Board of Directors Work Session

Federal Action

Fourth COVID-19 Relief Package stalled in Congress ? Senate Republicans & House Democrats have both put forth proposals to

counteract the economic effects of COVID-19 ? The HEALS (Republican Proposal) and HEROES (Democrat Proposal)

ACTS have significant differences that will require additional negotiation across party lines ? $29 billion - Higher Education (HEALS) ? $37 billion ? Higher Education (HEROES) ? Negotiations could stall until after the election, even into calendar year 2021 ? GOOD NEWS: All Budget Proposals include funding for Higher Education

Federal Action

President Trump signs series of four "Executive Orders" on COVID-19 Relief in August:

? Student Loan Repayment ? Extends suspension of Federal Student Loan payments and Interest Accrual until December 31, 2020

? Payroll Tax Deferrals (Not Forgiveness) ? Temporarily suspends Withholding, Collection, and Deposit of Employees' Share of Payroll Taxes From September 1 - December 31, 2020 at Employers' Option

? Unemployment Aid ? $300 in additional weekly federal aid as an unemployment benefit without a state contribution required. Oregon is approved to participate. Payments will be retroactive and are expected to last three to five weeks depending on disaster relief funding.

? Evictions ? Consider an Eviction Ban For Renters if funds can be determined

Each of these actions may face legal challenges as changes on taxation and spending must come from Congress

PCC Federal COVID-19 Relief Funds

Received under Federal CARES ACT: $6.2 M ? HEERF Emergency Financial Aid Grants to Students $6.2 M ? HEERF Institutional Portion Funds $625 K ? Strengthening Institutions Program (SIP)

Awaiting from State of Oregon under Federal CARES ACT: Governor's Emergency Education Relief Fund (GEER Fund) to Public

Universities and Colleges

Student Directed Funds for immediate Financial Needs Housing, Food, Technology Needs Allocation will look at under-represented students ($6M Pool)

Online Quality Improvement Grants Minimum Amount + Headcount Allocation ($2.5M Pool)

PCC Federal COVID-19 Relief Funds

Can be applied for under Federal CARES ACT: Institutional Resilience & Expanded Postsecondary Opportunity (IREPO)

Grant Program

Competitive Grant Program under FIPSE (Greatest Unmet Needs Related to COVID-19)

Can be used for: Resuming Operations Supporting Students Reducing Disease Transmission Developing more agile delivery models (Distance Learning) for Students

$28M Available; Average Individual Award $1.5M

Oregon Action

? Community College Support Fund (CCSF) ? August 10th Special Legislative Session protected Full FY 2019 -2021 Community College Support Fund (CCSF) Allocation for Community Colleges ? Legislators recognized that Community Colleges and Public Universities had already suffered significant cuts in lost revenue

? Oregon Opportunity Grant ? Expenses were shifted to Other Fund tax credit revenues instead of GF ? No changes in allocation this year ? Students will not be impacted by cost shift this biennium

? Oregon Promise ? Now limited to students whose families have an Expected Family Contribution (EFC) of $22,000 or under ? Late change from EFC of $18,000 or under

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