Citing economic fallout from the pandemic, Maryland Governor Larry Hogan last week vetoed several major education funding measures―including $580 million in additional funding to address inequities at historically black colleges and universities, The Baltimore Sun reported. The Republican governor, however, allowed legislation to protect veterans by closing the 90/10 loophole for all private for-profit schools in the state to become law without his signature.
"The economic fallout from this pandemic simply makes it impossible to fund any new programs, impose any new tax hikes, nor adopt any legislation having any significant fiscal impact, regardless of the merits of the legislation," Hogan said in a letter to lawmakers. The state expected its revenue to decline by 50 percent over the next three months, the governor noted.
Maryland Democrats could still override the vetoes, reported the Sun.
Gov. Hogan did allow a number of bills to become law without his signature, including SB 294, the Veterans Education Protection Act. The move makes Maryland the first state in the nation to limit the revenue for-profit colleges can receive from enrolling veterans.
The Veterans Education Protection Act closes a loophole in the 90/10 rule, which bars for-profit colleges from getting more than 90 percent of their operating revenue from federal student aid. Under the federal rule, military and veterans' education benefits do not count toward that threshold despite being federal aid, an exception that some veterans groups say invites aggressive recruitment from unscrupulous for-profit schools.
Under the approved measure, all federal funding that for-profit colleges operating in Maryland receive counts toward the 90/10 rule. It also bars for-profits that receive more than 90 percent of their revenue from federal funds, including military benefits, from enrolling Maryland residents.
Additionally, Maryland's regulation would apply to for-profit schools based in other states that enroll residents in online education programs—a restriction that could encounter problems.
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The Baltimore Sun
https://www.baltimoresun.com/politics/bs-md-pol-hogan-vetoes-20200507-5feplmr3hfdhpfxwm4a4mufdya-story.html