Legislature(2001 - 2002)
03/08/2001 03:02 PM House HES
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 43-STUDENT LOAN FORGIVENESS CHAIR DYSON announced that the committee would hear testimony on HOUSE BILL NO. 43, "An Act relating to reimbursement of certain student loans; and providing for an effective date." Number 0238 KEVIN JARDELL, Staff to Representative Joe Green, Alaska State Legislature, came forth to testify on HB 43 on behalf of the sponsor. He stated that Representative Green identified a problem with the number of teachers in the state, specifically a shortage of teachers in certain geographical areas and in certain subject matter areas. He said the goal of HB 43 is to increase the number of students studying in these subject matter areas where there is a shortage and encourage students upon graduation to begin their teaching careers in the geographically underserved areas. He remarked that HB 43 accomplishes these two goals by implementing a targeted loan forgiveness program that builds upon and encourages students to meet these two special needs. Number 0346 MR. JARDELL stated that in order for teachers to be eligible for the loan forgiveness program they must meet four criteria. First, they must have received a teaching certificate, degree, or endorsement from an in-state college or university. Second, they must be employed in a public elementary or secondary school. Third, they must be employed within a geographically underserved area or in a subject matter area that has a shortage of teachers. CHAIR DYSON asked whether somebody would be required to get a certificate through an Alaskan university if he or she went to a school outside of Alaska. MR. JARDELL answered that [he or she would]. He said that the district, not the university, issues the endorsement for the certificate. If a student obtained the credit hours necessary for that endorsement in-state, then he or she would qualify for the program. Number 0450 CHAIR DYSON asked if, currently, a credentialed person from out of state has to take additional courses in Alaska in order to get an Alaska teaching certificate. MR. JARDELL replied that he understands that the person does [have to take additional courses in Alaska]. He continued, stating that the fourth requirement is that the person has to be in compliance with loan requirements under AS 14.43.120, meaning he or she cannot be in default on his or her loan. He clarified that [these four requirements] are for individual eligibility, and that there are additional requirements for the loan itself to be forgiven. He stated that, after looking at the history of loan forgiveness programs, Representative Green is allowing only loans taken after 60 credit hours to be eligible for the forgiveness programs. Mr. Jardell said the reason for this is because, in the past, there have been high default rates for the forgiveness program. The thought was that people enter the first two years [of school] with the belief that they will never have to repay their loan; they never complete a degree program and end up having to pay a debt that they never intended to pay back. He remarked that the graduation success rate is dramatically improved by requiring [loan forgiveness] only after the first 60 credit hours. CHAIR DYSON asked who decides what areas are geographically underserved, and which [subject areas] qualify as having a shortage of teachers. Number 0600 MR. JARDELL answered that the legislation [provides for] the Postsecondary Education Commission to make that decision. He stated that it was believed that giving the commission latitude in trying to ascertain what areas have a shortage would provide the best opportunity for the program to work. CHAIR DYSON asked if [the Postsecondary Education Commission] has agreed to have that role. MR. JARDELL responded that it is his understanding, in discussing the bill with them, that they believe they could handle the obligation through implementing regulations. CHAIR DYSON asked if [the Postsecondary Education Commission] had asked for a budget increment to take on that responsibility. MR. JARDELL answered that they asked the legislation to clarify how this would be funded. He stated that it is a GF (general fund) funding mechanism, and if there is no appropriation, there will not be a program. Number 0695 CHAIR DYSON asked if the [present] fiscal note covers administration and the cost of forgiving loans. MR. JARDELL replied that he didn't know, but that it was his understanding that it does [include all costs]. He continued, stating that all loans taken after the [first] 60 credit hours, if the student meets the individual eligibility requirements, can be forgiven up to 100 percent over a five-year payout. Number 0779 REPRESENTATIVE CISSNA remarked that there are many incentives [with this program], which are needed in order to make sure people go to Alaskan institutions and stay in Alaska. She stated that she thinks it is necessary, in the [geographically] underserved areas, for people to stay and teach there, because the chances of their staying are much greater than having someone come from Southeast and go up to Barrow. She asked if there was any thought of making an extra incentive for someone to go home [to the geographically underserved areas] to teach. MR. JARDELL answered that it was discussed, but it is difficult to come up with incentives and utilize the resources that are best available. He stated that Representative Green believes that encouraging the in-state participation would persuade people to stay longer than five years. He pointed out that there is a program available to rural students who want to teach through which their loans are forgiven 100 percent. Number 0900 REPRESENTATIVE STEVENS asked how [the loan forgiveness] is prorated if someone has accumulated 55 credits and is in the middle of a semester in which he or she is taking another 15 [credits]. MR. JARDELL responded that the intention of the legislation is that [the loan forgiveness] would be prorated. If a person has 55 credit hours and takes a loan out for an additional 15 credit hours, the commission and the Alaska student Loan Corporation would run the program in a manner allowing a portion of that loan, on a prorated basis, to be forgiven. CHAIR DYSON stated that in hearing testimony on a previous bill, the committee realized that the term "schoolteacher" may not include certificated librarians and counselors. He asked if [HB 43] intends for all the certificated personnel in the facility be included. MR. JARDELL answered that it is his understanding that in any area where a person would receive a teaching certificate, whether it be a librarian or counselor, and there is a shortage he or she would be eligible for the forgiveness program. Number 1028 There was a motion to adopt CSHB 43(EDU), 22-LS0225\S, as the working document, but it was already before the committee.] CHAIR DYSON asked Mr. Jardell if he would object if the committee offered an amendment [22-LS0225\S.1, Ford, 3/8.01], which read: Page 2, following line 25: Insert a new subsection to read: "(f) In this section, "teacher" includes a librarian, counselor, or other person who possesses a valid teacher certificate issued under AS 14.20.020." MR. JARDELL replied that he has seen the amendment and believes that it would be consistent with what [Representative Green] hopes to accomplish with the legislation. Number 1088 REPRESENTATIVE KOHRING made a motion to adopt the forgoing as Amendment 1. There being no objection, Amendment 1 was adopted. Number 1115 REPRESENTATIVE STEVENS asked Diane Barrans whether [Amendment 1] will have any impact on the fiscal note. DIANE BARRANS, Executive Director, Postsecondary Education Commission, Department of Education and Early Development, came forth and answered that it may have an impact on the fiscal note. She stated that it is her understanding that the assumptions used to develop the cost in the fiscal note accompanying this version of the bill relied just on those classroom employees. CHAIR DYSON remarked that it might [affect the fiscal note], depending on whether there is a shortage of counselors or librarians somewhere, but it is not known for sure. MS. BARRANS answered that he was correct. REPRESENTATIVE STEVENS asked if principals would be a part of this as well. CHAIR DYSON answered, from his reading [of the bill], that they would if there were a shortage of them. Number 1220 MS. BARRANS stated that, specific to the fiscal note, there are no administrative costs incorporated. The [Postsecondary Education Commission] administers a number of small programs, which she believes to not have a significant direct cost associated with them. She said it would be her determination that this would fall under that category. She added that she believes the [Postsecondary Education Commission] is working with the commissioner of Education and [Department of] Early Development and could come up with criteria for shortage by regulation. REPRESENTATIVE STEVENS asked if [the Postsecondary Education Commission] is prepared to prorate [the loan]. MS. BARRANS replied that the intent of the sponsor is not clear in the bill. She understands that the individual would not receive a benefit for the term prior to passing over the 60- credit threshold. She explained that trying to prorate that sort of benefit for the loan for a single term would be administratively cumbersome for the [Postsecondary Education Commission's] and for the institution that's certifying the level of credits. She stated that she believes the basic structure of the bill is built around the typical 15-credit full-time course load, and doesn't think that there would be a great number of students that this would pertain to. Number 1328 REPRESENTATIVE STEVENS remarked that he understands it would be the first semester after the completion of 60 credits. CHAIR DYSON asked Mr. Jardell if he wanted to try to solve this problem or let it stand as it is. MR. JARDELL responded that when [the bill] was written, the idea was to come up with a methodology that didn't produce the high default rates that forgiveness programs have had in the past. He stated that 60 credit hours was what Representative Green had chosen, and looking at it again it does seem to indicate that someone would have to have completed the 60 hours before taking out the loan. He stated that he believes leaving the bill as it stands would accomplish the overall goal without the administrative problems that seem to be indicated. REPRESENTATIVE KOHRING asked why the legislation only applies to public schools. MR. JARDELL replied that because of the limited resources available, Representative Green hoped to restrict it to the public education system, where there seems to be the most problems with shortages. Number 1413 CHAIR DYSON called for an at-ease at 3:26 p.m. The meeting was called back to order at 3:27 p.m. CHAIR DYSON asked Ms. Barrans whether there would be problems if there was an amendment that took out the word "public" on page 1, line 9. Number 1437 MS. BARRANS replied that private school teachers are a sort of unknown quantity, and she is unsure of where to look to see how many there are in order to estimate a fiscal impact. CHAIR DYSON asked [if she is also unsure of where to look] to certify that there is a shortage. MS. BARRANS answered yes. Number 1475 REPRESENTATIVE KOHRING made a motion to adopt a conceptual amendment striking the word "public" anywhere it is used in the bill. There being no objection, Amendment 2 was adopted. REPRESENTATIVE STEVENS remarked that the point of [HB 43] was to target both geographically underserved areas and subject areas. On [page 1], line 10, it says, "is employed within a geographically underserved area of the state or is employed in the state to teach a subject for which there is a shortage of teachers". He stated that it has been amended so the word teacher includes librarians, counselors, or other persons who possess a valid teaching certificate, and he understands there could be shortage [of these professions] geographically. He asked if this would affect the subject areas where there are teacher shortages, because it doesn't seem as if librarians, counselors, and other persons fit in to this [category]. Number 1589 CHAIR DYSON called for an at-ease at 3:31 p.m. He called the meeting back to order at 3:38 p.m. Number 1591 CHAIR DYSON offered a conceptual amendment on page 1, line 11, after "teachers", to add: "or works in another professional capacity for which a shortage has been identified". There being no objection, Amendment 3 was adopted. REPRESENTATIVE COGHILL moved to report CSHB 43(EDU) as amended out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 43(HES) was moved from the House Health, Education and Social Services Standing Committee.
| Document Name | Date/Time | Subjects |
|---|