Archive for February, 2013

Idaho Cosmetology Schools to Lose Federal Funding unless Legislature Takes Action

Idaho Cosmetology Schools are slated under federal mandate to lose Title IV eligibility on July 1, 2013 unless the State legislature takes action this session to recognize Cosmetology schools as post-secondary institutions.  This means that after July 1, otherwise eligible students would not be able to obtain federal support for their cosmetology education in Idaho.  There are approximately 1000 students currently attending cosmetology school in Idaho.  Thousands more are planning to attend cosmetology school in future years.  Since the majority of students depend on federal funding to develop a productive skill and career, without federal student funding the vast majority of the schools in Idaho will have to close their doors and leave these students without an option to pursue their dream career.  The placement rate for schools responding to an ad hoc survey is that Idaho cosmetology schools place 80-95% of all students into productive jobs in their chosen career path.  Including the 10 to 30 employees that currently work each of Idaho’s 30+ cosmetology schools, it would be a horrible loss of employment for our state if the legislature does not act.  

All the legislature is being asked to do is to identify cosmetology schools in existing legislation that currently regulates all cosmetology schools as “post-secondary” schools.  The federal mandate requires that only post-secondary schools regulated by the state can receive federal funding.  Idaho complies in every detail but the inclusion of the words “post-secondary” in the statute.

It would be a travesty if the failure of the legislature to include two words in an existing statue terminates the cosmetology industry in our state and leaves future cosmetology professionals without options in the great State of Idaho.

Please let you legislator know that you support the passage of HB 162.  It is urgent!

George Brunt, Chairman

Idaho Association of Cosmetology Schools

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There has been a lot of activity at the capitol this week. The combined House and Senate
education committees held two days of joint public listening sessions on primary and secondary
education issues. There will be one more this coming Monday evening to allow parents and
teachers who may have not had an opportunity to attend the morning meetings to voice their
opinions. This issue will show more prominence in the days to come. The public rejection of
the reform measures passed in the legislature last year has created several holes in the system
that need to be addressed. The most pressing being the $34million that was removed from
education as a result of the repeal of the Children Come First bills.
The Senate Commerce Committee held two days of contentious public hearings on Senate Bill
1042, the legislation proposed by the Governor’s office that establishes an Idaho insurance
exchange. The bill, at the end, was approved by the committee on an 8-1 vote and sent to the
Senate floor with a do-pass recommendation. Although the committee approval was strong, the
proposal has a rough road ahead as it works its way through the system. We’ll keep you posted.
On the financial side, January revenue was $281.4 million, which is $0.9 million (0.3%) above
the $280.5 million expected for the month. The fiscal year-to-date General Fund revenue is
$1,579.5 million. This amount is $2.7 million (-0.2%) lower than the projected $1,582.2 million.
Idaho sales tax was by far the strongest performing revenue source this month, coming in 8.5%
higher than expected. The Joint Finance and Appropriations Committee will be looking closely
at these numbers as they must determine a revenue projection number before they start setting
budgets on February 18th.
Proprietary School Designation: In working to comply with the new federal rules requiring
post-secondary designation for all proprietary schools we will be proposing legislation to address
the issue specifically for cosmetology schools. Monday we presented a proposal to the Board of
Cosmetology and worked throughout the week with the attorneys for that board as well as the
State Board of Education and other stake holders to arrive at a proposal we will present before
the House Education Committee on Tuesday. The difficulty of the legislation has been to define
cosmetology schools as post-secondary without further limiting who can attend the schools. I
believe the proposal does this and it does have the consensus of the various groups. This is a
print hearing and no testimony will be taken.

Written by Kris Ellis

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