Legislature(2007 - 2008)CAPITOL 106

03/13/2008 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 190 NURSING MOTHERS IN WORKPLACE TELECONFERENCED
Moved CSHB 190(HES) Out of Committee
*+ HB 397 POSTSECONDARY SCHOLARSHIPS TELECONFERENCED
Heard & Held
*+ HB 403 APPROP: SCHOLARSHIP FUND TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 397-POSTSECONDARY SCHOLARSHIPS                                                                                             
                                                                                                                                
[Contains discussion of HB 403.]                                                                                                
                                                                                                                                
4:48:01 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  announced that the  next order of business  would be                                                              
HOUSE BILL NO.  397, "An Act creating a  postsecondary scholarship                                                              
grant program for  Alaska residents based on high  achievement and                                                              
financial need."                                                                                                                
                                                                                                                                
[Testimony   was  heard   on   HOUSE  BILL   NO.   403,  "An   Act                                                              
appropriating  $100,000,000 to the  Alaska achievers'  scholarship                                                              
fund;  and providing  for an  effective date,"  although the  bill                                                              
was not formally before the committee.]                                                                                         
                                                                                                                                
4:48:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   DAVID  GUTTENBERG,   Alaska  State   Legislature,                                                              
introduced  HB  397,  as  the prime  sponsor.    He  informed  the                                                              
committee  that  the  bill  establishes  an endowment  to  fund  a                                                              
combination  needs-based   and  merit-based   college  scholarship                                                              
program.    Representative  Guttenberg  pointed  out  that  Alaska                                                              
ranks last  in the  U. S.  in supplying  this type of  scholarship                                                              
and  it  was  a critical  aspect  of  the  legislature  to  assist                                                              
residents with the ability to go to college.                                                                                    
                                                                                                                                
4:50:54 PM                                                                                                                    
                                                                                                                                
WILLIAM ANDREWS,  Member, Board of Regents, University  of Alaska;                                                              
Student, University  of Alaska Southeast,  stated his  support for                                                              
HB 397  and HB 403.   Through  his experience as  a member  of the                                                              
Board  of  Regents  and  as  a  former  legislative  staffer,  Mr.                                                              
Andrews realized  the importance  of the services  the legislature                                                              
provides  to  the residents  of  the  state.   Furthermore,  as  a                                                              
student,  he  realized  that  there is  a  growing  population  of                                                              
students  falling through  the cracks  due to  their inability  to                                                              
meet the cost of  tuition.  These bills would help  bridge the gap                                                              
for students who  can not afford to continue at  the University of                                                              
Alaska (UA).  He  opined that there was a discrepancy  between the                                                              
affluence  of the  state  and the  lack  of scholarship  programs.                                                              
Existing  scholarship  programs  are  not  increased  with  rising                                                              
costs,  and  students  who need  scholarships  to  complete  their                                                              
educations  are disenfranchised.   Mr. Andrews  advocated  for the                                                              
need to  support students  who have the  potential to  develop the                                                              
Alaska work  force.  He concluded  that the accountability  aspect                                                              
of this fund  requires successful academic performance,  on behalf                                                              
of the student, to continue to receive financial aid.                                                                           
                                                                                                                                
4:55:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES   asked  how  Mr.  Andrews   is  paying  for                                                              
college.                                                                                                                        
                                                                                                                                
MR.  ANDREWS  stated  that he  is  receiving  scholarship  funding                                                              
through various  Native corporations.   In  addition, he  receives                                                              
about  $300  per   month  through  the  G.  I.   bill,  and  found                                                              
additional funding  through the Preparing Indigenous  Teachers and                                                              
Administrators for Alaska's Schools (PITAAS) scholarship.                                                                       
                                                                                                                                
4:57:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES recounted  his college experience  attending                                                              
a  private  school, and  how  he  paid  for  his education.    The                                                              
education  was dear  to  him because  he had  to  pay every  cent;                                                              
however,  some students  do not  take  personal responsibility  in                                                              
paying for  their educations.   Representative  Roses pointed  out                                                              
that  students today  have  scholarships  and the  Permanent  Fund                                                              
Dividend (PFD) to help pay for college.                                                                                         
                                                                                                                                
5:00:11 PM                                                                                                                    
                                                                                                                                
MR. ANDREWS noted  that his PFD was not available  to him until he                                                              
was 18  years of age.   He agreed that  it is a resource  now, but                                                              
should not  be considered as an  entitlement available to  pay for                                                              
college  into  the  future.    Furthermore,  he  opined  that  the                                                              
availability  of the PFD  has accounted for  raises in  tuition at                                                              
the UA.                                                                                                                         
                                                                                                                                
5:02:15 PM                                                                                                                    
                                                                                                                                
DIANE   BARRANS,  Executive   Director,  Postsecondary   Education                                                              
Commission,  Department   of  Education  and   Early  Development,                                                              
informed  the committee  that there  was  a clear  unmet need  for                                                              
needs-based  aid for students.   The  additional element  of merit                                                              
is  laudable; however,  the goal  of  the Postsecondary  Education                                                              
Commission is  to assist those with  the greatest need.   She said                                                              
that  these  funds  would  be  administered  in  conjunction  with                                                              
existing  programs and  indicated that  there would  be a  sizable                                                              
demand for the scholarships.                                                                                                    
                                                                                                                                
5:03:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  recalled that  Alaska  ranks  last in  the                                                              
achievement  of bachelor's  degrees.   She  asked  Ms. Barrans  to                                                              
comment.                                                                                                                        
                                                                                                                                
5:04:52 PM                                                                                                                    
                                                                                                                                
MS.  BARRANS stated  that incentives  and information  need to  be                                                              
provided  to students and  their families.   Academic  preparation                                                              
and ability,  and the  ability to  pay tuition,  are critical  for                                                              
students  to successfully  complete  their  studies  and obtain  a                                                              
degree.    In Alaska,  fewer  than  one  in six  college  students                                                              
complete their  higher education in  a timely manner,  one barrier                                                              
being the accumulated debt.                                                                                                     
                                                                                                                                
5:06:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked whether  there should  be a  limit on                                                              
the number of years an applicant was eligible for a scholarship.                                                                
                                                                                                                                
MS.  BARRANS  advised  that  amendments   have  been  prepared  to                                                              
address this issue.                                                                                                             
                                                                                                                                
5:07:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES   asked  whether  Ms.  Barrans'   office  is                                                              
responsible  for  managing  the  portion  of PFD  funds  that  are                                                              
dedicated for college.                                                                                                          
                                                                                                                                
MS. BARRANS  said no.   The PFD allotment  is managed  through the                                                              
UA.                                                                                                                             
                                                                                                                                
5:08:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES expressed  his interest  in how many  people                                                              
choose to dedicate  funds for education.  This  is another example                                                              
of removing an  individual's responsibility to provide  for his or                                                              
her education.   He  then asked  whether there is  a limit  in the                                                              
amount  of  student loans  given  per  year by  the  Postsecondary                                                              
Education Commission.                                                                                                           
                                                                                                                                
5:09:33 PM                                                                                                                    
                                                                                                                                
MS.  BARRANS  said that  the  limit,  per  student, per  year,  is                                                              
$8,500.  The total loan volume last year was $85 million.                                                                       
                                                                                                                                
REPRESENTATIVE  ROSES further asked  whether there were  qualified                                                              
students who did not receive funds.                                                                                             
                                                                                                                                
MS.  BARRANS recalled  that  qualified  applicants  have not  been                                                              
denied funds since 1987.                                                                                                        
                                                                                                                                
REPRESENTATIVE  ROSES observed  that an  applicant that  qualifies                                                              
for this scholarship would also qualify for a student loan.                                                                     
                                                                                                                                
MS.  BARRANS explained  that all  of  the students  would need  to                                                              
combine  grant aid  with  loans  from various  sources.   A  small                                                              
minority of  students would  be able to  pay for their  education,                                                              
which  costs  about $17,000  per  year  at a  public  institution,                                                              
solely with grants or scholarships.                                                                                             
                                                                                                                                
The committee took an at-ease from 5:10:48 PM to 5:11:46 PM.                                                                
                                                                                                                                
5:11:51 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON explained the procedure for public testimony.                                                                      
                                                                                                                                
5:13:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  opined that the bill allows  scholarships to                                                              
"qualifying  postsecondary  institutions  in  the state"  and  may                                                              
apply  to students  attending  trade  and vocational  schools,  or                                                              
working under an apprenticeship.                                                                                                
                                                                                                                                
5:13:42 PM                                                                                                                    
                                                                                                                                
MS.  BARRANS clarified  that  the  eligible institutions  must  be                                                              
regionally or nationally accredited, and located in Alaska.                                                                     
                                                                                                                                
5:14:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GARDNER  asked   whether  union   apprenticeships                                                              
charge tuition.                                                                                                                 
                                                                                                                                
MS. BARRANS opined that they do not.                                                                                            
                                                                                                                                
5:14:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked for a list of the qualified schools.                                                                
                                                                                                                                
5:15:08 PM                                                                                                                    
                                                                                                                                
ANNAMARIA  DICOLA,  Student,  University  of  Alaska,  stated  her                                                              
support for HB 397 and HB 403.  She pointed out that the non-                                                                   
traditional students  in Homer are  focused on career  development                                                              
and this program would help to meet the state's workforce need.                                                                 
                                                                                                                                
5:16:39 PM                                                                                                                    
                                                                                                                                
JOHN  ROBERSON   III,  Student   Body  President,  University   of                                                              
Anchorage, asked  for the committee's  help in assisting  Alaskans                                                              
to  achieve  their  academic  goals.     He  recalled  the  recent                                                              
legislation  to give incentives  to outside  businesses that  come                                                              
to Alaska;  in fact, HB 397 and  HB 403 would give  incentives for                                                              
students  to stay  in Alaska  and improve  the state's  workforce.                                                              
Mr. Roberson  stressed the importance  of keeping students  in the                                                              
state so that they will stay and work here.                                                                                     
                                                                                                                                
5:18:57 PM                                                                                                                    
                                                                                                                                
RYAN BUCHHOLDT,  Student, University  of Alaska Anchorage,  stated                                                              
his support  for HB 397  and HB 403  and echoed the  sentiments of                                                              
the previous  witness.   To pay  for school  he works a  full-time                                                              
job  and  lives  with  family.   Mr.  Bucholdt  opined  that  this                                                              
incentive  would help  prevent future  students  from leaving  the                                                              
state.   In response  to questions  from Representative  Roses, he                                                              
said that he carried 12 credits and works full-time.                                                                            
                                                                                                                                
5:20:43 PM                                                                                                                    
                                                                                                                                
MISTY M.  GIL MARTINEZ, Student,  University of Alaska  Fairbanks,                                                              
stated  that she  is  a wife,  the mother  of  three, a  full-time                                                              
student,  and an  employee.   She reviewed  her highly  successful                                                              
high school  history and  stated that she  did not attend  college                                                              
due to financial  constraints.  Ten years later  she began college                                                              
to improve her  employment opportunities.  Ms.  Gil Martinez spoke                                                              
of   her  financial   difficulties   and   the  effect   full-time                                                              
employment  had on  her  grade point  average.    She opined  that                                                              
financial  aid relieves  stress  and  facilitates  learning.   She                                                              
concluded that funding  for education will improve  Alaska in many                                                              
ways.                                                                                                                           
                                                                                                                                
5:24:34 PM                                                                                                                    
                                                                                                                                
MEREDITH  CAMERON,   Student,  University  of   Alaska  Fairbanks,                                                              
stated  her  support for  HB  397,  paraphrasing from  a  prepared                                                              
statement, which read as follows [original punctuation provided]                                                                
                                                                                                                                
     As   a  resident  of   Fairbanks,  a   student  of   the                                                                   
     University of  Alaska Fairbanks and an Alaskan,  I would                                                                   
     like  to express  my support  for  the Alaska  Achievers                                                                   
     Incentive  Program (AAIP)  [HB 397  and HB  403].   This                                                                   
     program    is   our   first    step   towards    college                                                                   
     affordability and increased student success.                                                                               
                                                                                                                                
     Higher  education  should  be  a  top  priority  to  our                                                                   
     state, as  we are  the future of  Alaska.  Through  this                                                                   
     program  those who have  the grades  and skills will  be                                                                   
     able  to   think  about  attending  University   without                                                                   
     needing to think  about the money.  For  graduating high                                                                   
     school  grads the  cost  of a  higher  education is  the                                                                   
     most important  topic discussed  by the student  and the                                                                   
     family.  It  is a shame that students do not  move on to                                                                   
     higher  learning because of  the cost.   The AAIP  looks                                                                   
     to provide assistance  to these students who  have a 3.0                                                                   
     High School GPA and meet financial aid standards.                                                                          
                                                                                                                                
     As  a Junior  here at  the  University of  Alaska and  a                                                                   
     high school  graduate of  West Valley,  I have seen  way                                                                   
     too  many of  my  fellow students  drop  out of  college                                                                   
     because  they cannot  afford  it.   They  did not  leave                                                                   
     because their  classes were too hard, or they  felt they                                                                   
     were  not getting a  steller education,  it was  because                                                                   
     they  could not  afford the  rising costs.   No  sutdent                                                                   
     should be  forced to work 40  hours a week  to stgruggle                                                                   
     to pay  for the  12 credits they  now are struggling  in                                                                   
     because they are too busy working.                                                                                         
                                                                                                                                
     Our  students  of  Alaska  high  schools  deserve  more.                                                                   
     They  need to  know that  some [one]  out [there]  cares                                                                   
     and worries about  the rising cost of tuition.   We have                                                                   
     a  very  successful  merit  based  scholarship,  the  UA                                                                   
     Scholars, now  it is time for a needs  ased scholarship.                                                                   
     I  have never  seen  a group  of students  more  passion                                                                   
     [ate] about  a need.  Here  at the University  of Alaska                                                                   
     Fairbanks, the  Associated Students of UAF  have finally                                                                   
     stood  up and  demanded  an  equal opportunity  for  the                                                                   
     students of  Alaska.  There were many  sleepless nights,                                                                   
     pouring  over   thousands  of  pages  of   material  and                                                                   
     reports,   and  dialogue  with   students,  staff,   and                                                                   
     administrator.    In  the end  they  achieved  something                                                                   
     that they  were told was impossible.   A House  Bill No.                                                                   
     397  now   sits  in  committee   that  would   start  an                                                                   
     endowment to  provide scholarships on a merit  and needs                                                                   
     based system.                                                                                                              
                                                                                                                                
     The great state  of Alaska and the nation  thrive on our                                                                   
     higher  education  institutions.     The  University  of                                                                   
     Alaska engages  the community, provides a  skilled labor                                                                   
     force,  and builds  a stronger  state.   As your  voting                                                                   
     constituent I  urge [you] to please support  bill number                                                                   
     397 and open up the future of many young Alaskans.                                                                         
                                                                                                                                
5:26:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked whether Ms.  Cameron held a  job and                                                              
was working over spring break.                                                                                                  
                                                                                                                                
MS. CAMERON said yes.                                                                                                           
                                                                                                                                
5:26:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  asked all of the students  if they know                                                              
the source of the state grant money.                                                                                            
                                                                                                                                
MS. CAMERON indicated that the money comes from oil.                                                                            
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH   explained  the  struggle   of  policy                                                              
makers who  must consider approving  benefits to some who  may not                                                              
support  the industry  that  provides 90  percent  of the  state's                                                              
revenue.  Conversations with  students have  indicated that  they,                                                              
and perhaps the  university system, do not support  development of                                                              
the Pebble Mine  or oil exploration in the Chukchi  Sea.  However,                                                              
she  pointed  out  that resource  development  is  the  source  of                                                              
income that  would fund this  $100 million grant.   Representative                                                              
Fairclough observed  that there should be support  for the revenue                                                              
stream from those who receive benefits.                                                                                         
                                                                                                                                
5:29:46 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON supported Representative Fairclough's point.                                                                       
                                                                                                                                
5:30:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA asked  whether the  students have  ideas on                                                              
how to diversify Alaska's source of revenue.                                                                                    
                                                                                                                                
5:30:51 PM                                                                                                                    
                                                                                                                                
DAVID   CHILDERS,  Student,   University   of  Alaska   Anchorage,                                                              
remarked   that  students   in   Alaska  can   look  to   economic                                                              
opportunities, outside  of resource development, and  explore them                                                              
through the  university.   However; the  university does  not have                                                              
the capability  to provide  scholarships for needs-based  students                                                              
or to  compete with  other states  that provide  up to  $4,000 per                                                              
year to  support low income students.   The diversity  of Alaska's                                                              
economic base  may depend  on UA  graduates developing  the future                                                              
resources in technology, the Internet, or in construction.                                                                      
                                                                                                                                
REPRESENTATIVE  ROSES   asked  whether  the  $4,000   provided  to                                                              
students in other states is a grant or a loan.                                                                                  
                                                                                                                                
MR.   CHILDERS   answered  that   the   Supplemental   Educational                                                              
Opportunity  Grant  funds  grants  in  the  amount  of  $2,000  to                                                              
$4,000.                                                                                                                         
                                                                                                                                
5:34:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES suggested  that the  state greatly  increase                                                              
the amount  of the student loan  program and add a  work incentive                                                              
for those who stay in the state.                                                                                                
                                                                                                                                
MR. CHILDERS opined  that the increased debt burden  would prevent                                                              
graduates from investing in their community for many years.                                                                     
                                                                                                                                
REPRESENTATIVE  ROSES advised  that a  loan program  would have  a                                                              
source  of  future  income  that may  support  the  program  after                                                              
declining oil revenues can not.                                                                                                 
                                                                                                                                
5:37:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER noted  that funds  for the  program may  be                                                              
limited.   He  asked whether  the  preference would  be to  needs-                                                              
based, or merit-based, scholars in that case.                                                                                   
                                                                                                                                
5:37:55 PM                                                                                                                    
                                                                                                                                
MR.  CHILDERS  pointed  out  that   the  UA  Scholars  Program  is                                                              
available to  support students  on a merit  only basis.   However,                                                              
HB 397 incorporates  need-based and merit-based  qualifications in                                                              
a  sustainable  scholarship  endowment  system.    In  fact,  a  5                                                              
percent to  10 percent  investment return  on the endowment  would                                                              
mean $5 million to $10 million available for scholarships.                                                                      
                                                                                                                                
5:39:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER surmised  that the  $100 million  endowment                                                              
would take care of the needs-based applicants.                                                                                  
                                                                                                                                
MR. CHILDERS  related statistics  by the  financial aid  office at                                                              
the  University  of  Alaska  Anchorage   that  indicated  that  $3                                                              
million would  be sufficient to  allow UA Anchorage to  assist its                                                              
needs-based  applicants.    He further  opined  that  $10  million                                                              
would be sufficient for the statewide university system.                                                                        
                                                                                                                                
5:40:35 PM                                                                                                                    
                                                                                                                                
MARY GOWER,  Director, Enrollment  Services, University  of Alaska                                                              
Fairbanks, recalled  that Alaska is ranked 51st in  the nation for                                                              
supplying need-based  aid for  education.   She stressed  the need                                                              
for  additional need-based  grant  aid and  pointed  out that  the                                                              
existing  need-based programs  are  modest  programs with  limited                                                              
resources.                                                                                                                      
                                                                                                                                
5:41:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES  asked  Ms.  Gower for  the  average  yearly                                                              
enrollment of the statewide university system.                                                                                  
                                                                                                                                
MS. GOWEN  indicated that  enrollment was  about 33,000  full-time                                                              
and part-time students.                                                                                                         
                                                                                                                                
REPRESENTATIVE  ROSES observed  that 5 percent  of the  endowment,                                                              
or about  $8 million, would only  help 1,600 of the  students each                                                              
year.                                                                                                                           
                                                                                                                                
MS.   GOWAN  pointed   out  that   the   university  is   awarding                                                              
approximately $102  million in financial aid each  year, a portion                                                              
of which is loan  aid.  In addition, $13.1 million  is distributed                                                              
as need-based  grants  and students  continue to  drop out  due to                                                              
financial problems.                                                                                                             
                                                                                                                                
5:43:47 PM                                                                                                                    
                                                                                                                                
DELIGHT KENNEDY,  Student, University of Alaska  Fairbanks, stated                                                              
that she is representing  students from the past  and the present,                                                              
and from rural and  urban communities.  She pointed  out that only                                                              
twenty-seven  percent  of  enrollees  graduate in  six  years;  in                                                              
fact, the  highest percentage  drop out  for family and  financial                                                              
reasons.   Ms. Kennedy related  her personal experience  regarding                                                              
family financial  responsibilities.   She  continued to point  out                                                              
that  many   current  enrollees   are  working  full-time,   which                                                              
detracts from their  academic success, and the  existing financial                                                              
aid  programs are  inadequate.   For  example, at  her urban  high                                                              
school,  the  top 10  percent  of  the  class  had a  grade  point                                                              
average  of 4.2.   She  concluded  that an  investment in  Alaskan                                                              
students is an investment in Alaska.                                                                                            
                                                                                                                                
5:47:04 PM                                                                                                                    
                                                                                                                                
CHRISTOPHER   STEFANOVICH,    Student,   University    of   Alaska                                                              
Anchorage, provided  statistics that indicated how  an increase in                                                              
tuition  effects  enrollment at  the  university.   He  urged  the                                                              
committee to support the bills.                                                                                                 
                                                                                                                                
5:49:02 PM                                                                                                                    
                                                                                                                                
JAKE  HAMBURG,  President,  Student  Body,  University  of  Alaska                                                              
Fairbanks,  stated   that  he   was  representing  nine   thousand                                                              
students.  He  paraphrasing from a prepared statement,  which read                                                              
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     I  am  a University  of  Alaska  Fairbanks  student  who                                                                   
     began  his UA education  at Kenai  Peninsula College  in                                                                   
     Soldotna.   I work approximately  56 ours per  week both                                                                   
     as UAF's student  body president and as a  weekend sales                                                                   
     associate  while  also  attending  class  fulltime.    I                                                                   
     cannot afford  to work any less due to  rent, inevitable                                                                   
     car repairs,  fuel, tuition,  and books.   I do  not shy                                                                   
     away  from   hard  work  but   paying  for   my  college                                                                   
     education  is  increasingly  placing  a strain  upon  my                                                                   
     ability to successfully complete by degree.                                                                                
                                                                                                                                
     As  UAF's student  body president,  this  [is] a  common                                                                   
     experience I  hear from many of the students  and groups                                                                   
     that  I  have  met  with.   I  have  met  far  too  many                                                                   
     students who  have been forced to drop out  because they                                                                   
     could  not personally  fund  their  education.   I  know                                                                   
     from  speaking  with  many  other  students  around  the                                                                   
     state  that they  are working  long hours  to make  ends                                                                   
     meet  while trying  to also  finish  their homework  and                                                                   
     attend classes.   Students know how important  a college                                                                   
     education   is  to  their   future  and  so   they  work                                                                   
     incredible hours and burden themselves with debt.                                                                          
                                                                                                                                
     The  state  of  Alaska's  employers   are  craving  more                                                                   
     university  graduates and  addressing the  affordability                                                                   
     issues plaguing  students and  their families will  go a                                                                   
     long  way  toward  meeting  that need.    We  know  from                                                                   
     existing research  that a $1,000  reduction in  the cost                                                                   
     of  a college  education can  boost  enrollment by  nine                                                                   
     percent.   We  also know  that  a $160  increase in  the                                                                   
     cost  of attendance  can drop  undergraduate  enrollment                                                                   
     by .5  percent and community  college enrollment  by 2.3                                                                   
     percent.    A  survey performed  by  the  University  of                                                                   
     Alaska Southeast  found that  the number two  reason why                                                                   
     students  were dropping  out was  because they  couldn't                                                                   
     afford  to continue  their  education.   The number  one                                                                   
     reason was family problems.                                                                                                
                                                                                                                                
     For students  approaching their high school  graduation,                                                                   
     the cost  of a  higher education  is the most  important                                                                   
     topic discussed  by the student  and the family.   It is                                                                   
     unfortunate  that  students do  not  move on  to  higher                                                                   
     learning because of the cost.                                                                                              
                                                                                                                                
     It  has also  been shown  that  the growing  cost of  an                                                                   
     education  is changing the  perception of  affordability                                                                   
     among  our elementary  and  middle school  students  and                                                                   
     their  parents.   It  is  at  these ages  that  students                                                                   
     really  decide whether college  is something  attainable                                                                   
     for themselves.                                                                                                            
                                                                                                                                
     There is  some good new.   The state has  an opportunity                                                                   
     to   support    a   student-led   effort    to   provide                                                                   
     scholarships   to   those   students   who   demonstrate                                                                   
     academic merit  and financial need.  In the  interest of                                                                   
     thousands of  students from all ages and  regions around                                                                   
     this  state,  it  is  my  sincere  hope  that  you  will                                                                   
     support HB 397 and HB 403.                                                                                                 
                                                                                                                                
5:50:12 PM                                                                                                                    
                                                                                                                                
CASEY MELIAH,  Student, University  of Alaska Anchorage,  informed                                                              
the committee that  he is a freshman enrolled at  UA Anchorage and                                                              
HB 397  and HB 403  would allow him  to better pursue  his studies                                                              
to be  a firefighter  and paramedic.   He  explained that  he will                                                              
need to  exceed the  recommended 20  hour work  week to  cover his                                                              
college expenses.                                                                                                               
                                                                                                                                
5:51:48 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON asked  whether Mr. Meliah plans to stay  in Alaska to                                                              
work.                                                                                                                           
                                                                                                                                
MR. MELIAH said yes.                                                                                                            
                                                                                                                                
5:52:16 PM                                                                                                                    
                                                                                                                                
DANIEL   SWISHER,  Student,   University   of  Alaska   Fairbanks,                                                              
expressed  his concern  that the  committee was  unaware that  the                                                              
cost of  tuition is  just one part  of the  cost of an  education.                                                              
He noted  that fees are rising  as fast, or faster,  than tuition.                                                              
Mr.  Swisher opined  that the  bill  proposes a  one time  funding                                                              
that will be  sustained as an endowment.  Furthermore,  the return                                                              
on the  endowment would  fit with the  other existing  programs to                                                              
assist students.                                                                                                                
                                                                                                                                
5:54:01 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON  thanked those  who  have  been waiting  to  testify                                                              
since 3:00 p.m.                                                                                                                 
                                                                                                                                
5:54:35 PM                                                                                                                    
                                                                                                                                
SETH HOLTSHOUSER,  Student, University  of Alaska Anchorage,  said                                                              
that he  is a  life-long Alaskan.   He  expressed his belief  that                                                              
individual   responsibility   is   the   same   as   the   state's                                                              
responsibility  to develop  and cultivate  future human  resources                                                              
through  its  own  citizens.    The  Alaska  Achievers'  Incentive                                                              
Scholarship  Program  [(AAIP)]  endorses  the investment  and  the                                                              
economic development  of Alaska's workforce in future  leaders and                                                              
provides Alaskans  greater access to the training,  education, and                                                              
resources of  the universities across  Alaska.  He  encouraged the                                                              
state's policy  makers to  join other  states in placing  economic                                                              
access to  education as  the top  priority and responsibility  for                                                              
its citizens.   Mr. Holtshouser  concluded that this program  is a                                                              
crucial  point  in addressing  student's  needs,  now  and in  the                                                              
future, and to make a positive impact on the state.                                                                             
                                                                                                                                
5:56:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  asked whether Mr. Holtshouser  saved his PFD                                                              
for college.                                                                                                                    
                                                                                                                                
5:56:58 PM                                                                                                                    
                                                                                                                                
MR. HOLTSHOUSER noted  that, after the age of 18,  he chose to use                                                              
his PFD to offset  student loans.  In response to  a question, Mr.                                                              
Holtshouser said that he was a sophomore.                                                                                       
                                                                                                                                
5:59:08 PM                                                                                                                    
                                                                                                                                
JOSEPH  HICKMAN, Director,  Student  Support Services,  University                                                              
of  Alaska Fairbanks  (UAF), explained  that he  was a  low-income                                                              
and high  achieving  student at  UAF.  Although  he qualified  for                                                              
many  scholarship  and loan  programs,  and worked  full-time,  he                                                              
graduated  with $50,000  of student  loan  debt.   He opined  that                                                              
this bill  would relieve  students of  much of  that kind  of loan                                                              
debt.   He listed statistics that  indicated the level  of support                                                              
for low  income students  provided by other  states.   Mr. Hickman                                                              
acknowledged  that this  program is  not going  to fix the  entire                                                              
problem, but it is a small step.                                                                                                
                                                                                                                                
6:01:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES  asked  whether,  in  his  capacity  as  the                                                              
Director  of  Student  Support   Services,  Mr.  Hickman  assisted                                                              
students to get loans, grants, and scholarships.                                                                                
                                                                                                                                
MR. HICKMAN  indicated that  his position is  funded by the  U. S.                                                              
Department  of Education  that supports  low-income students  with                                                              
grants, computers, and tutoring.                                                                                                
                                                                                                                                
REPRESENTATIVE  ROSES  further asked  whether  there  is one  area                                                              
that is a clearing house for available scholarships.                                                                            
                                                                                                                                
MR. HICKMAN  said no.  His  office searches for  possibilities and                                                              
provides the information to the student.                                                                                        
                                                                                                                                
REPRESENTATIVE ROSES  then asked  whether all of  the scholarships                                                              
are distributed each year.                                                                                                      
                                                                                                                                
MR.  HICKMAN said  yes.   He added  that  his program  is able  to                                                              
award only  one-half of the  applications received.   Furthermore,                                                              
the  successful   applicants  are   required  to  apply   for  UAF                                                              
scholarships  as well.   In response  to a  question, Mr.  Hickman                                                              
stated that  the loans and scholarships  are available to  all UAF                                                              
students.                                                                                                                       
                                                                                                                                
6:03:14 PM                                                                                                                    
                                                                                                                                
ANDY  ANGAIAK,  Director,  Upward  Bound  Program,  University  of                                                              
Alaska Fairbanks,  informed the committee  that Upward Bound  is a                                                              
federal  program,   funded  through   the  U.  S.   Department  of                                                              
Education,  which was created  by the  War on Poverty  initiatives                                                              
of  the 1960's.    Its purpose  is  to encourage  low-income  high                                                              
school  students   to  graduate  and  enter  programs   of  higher                                                              
education.   Mr. Angaiak said that  Upward Bound serves  13 Alaska                                                              
high  schools  and he  provided  statistics  on the  Upward  Bound                                                              
program.                                                                                                                        
                                                                                                                                
6:05:37 PM                                                                                                                    
                                                                                                                                
MELANIE  K.  LEYDON,  Student,   University  of  Alaska  Anchorage                                                              
(UAA), informed the  committee that she was a freshman  at UAA and                                                              
works part-time.   She  shared her  future plans  for a  career in                                                              
Alaska.   Ms. Leydon said  that she was  speaking for  herself and                                                              
her siblings  as they are  receiving no financial  assistance from                                                              
their parents  to pay for  college.  She  asked for  the committee                                                              
to assist the future leaders of Alaska.                                                                                         
                                                                                                                                
6:07:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked for the  reason Ms. Leydon  does not                                                              
receive financial support from her parents.                                                                                     
                                                                                                                                
MS. LEYDON explained that it is a financial reason.                                                                             
                                                                                                                                
REPRESENTATIVE  GARDNER  asked  whether her  parents  are  college                                                              
educated.                                                                                                                       
                                                                                                                                
MS. LEYDON said no.                                                                                                             
                                                                                                                                
6:07:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES asked  Ms. Leydon whether  she had  acquired                                                              
any student debt.                                                                                                               
                                                                                                                                
MS.  LEYDON, in  response to  questions, answered  that she  works                                                              
part-time to  pay cash for school,  lives at home, and  works at a                                                              
real estate office full-time in the summer.                                                                                     
                                                                                                                                
6:09:21 PM                                                                                                                    
                                                                                                                                
KEVIN  TURNBOUGH,  Representative,  Upward  Bound,  University  of                                                              
Alaska Fairbanks,  addressed the issue of need-based  students who                                                              
leave  the state  for  their education.    He  explained that  for                                                              
every Pell  grant student that  comes in  to the state  for higher                                                              
education,  five to  seven Pell  grant  students leave.   He  gave                                                              
examples   of  Upward  Bound   high  school   students  who   have                                                              
successfully    completed    high     school    under    difficult                                                              
circumstances.    These  students   need  and  deserve  additional                                                              
support in order  to attend college.  Mr. Turnbough  stressed that                                                              
the state  needs to  do more for  students coming from  low-income                                                              
backgrounds  so that they  can better  their lives through  higher                                                              
education.                                                                                                                      
                                                                                                                                
6:13:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES asked whether  granting a scholarship  would                                                              
guarantee that the student would stay in the state.                                                                             
                                                                                                                                
MR.  TURNBOUGH said  that  there  is no  guarantee,  but it  would                                                              
increase  the  likelihood.    His  personal  experience  was  that                                                              
students feel  a commitment to their  state; however, they  do not                                                              
want to graduate with student debt.                                                                                             
                                                                                                                                
6:15:25 PM                                                                                                                    
                                                                                                                                
DANA L.  THOMAS, Professor  of Statistics;  Assistant Provost  for                                                              
General Studies,  University of  Alaska Fairbanks, stated  that he                                                              
was raised  and educated in Alaska  and expressed his  support for                                                              
the bill[s].   To answer the  question of whether  students should                                                              
work, his  data indicates  that more UAF  students work  in excess                                                              
of 20  hours per week  and attend school  part-time than  in other                                                              
states.    National  research shows  that  these  students  attain                                                              
degrees at  a significantly  lower rate, and  in a greater  length                                                              
of time,  than full-time  students.   In his  own experience,  Mr.                                                              
Thomas was  able to work part-time  and pay for  college; however,                                                              
the evidence is  clear that, at the cost of education  today, that                                                              
is not  possible.   He pointed  out that,  at UAF, when  student's                                                              
reach a  debt of about  $10,000 in loans,  they tend to  drop out.                                                              
Lastly,  he related  that the  Postsecondary Education  Commission                                                              
distributed  financial aid  to 579  students  whose family  annual                                                              
income was less than $15,000.                                                                                                   
                                                                                                                                
6:18:20 PM                                                                                                                    
                                                                                                                                
LINDSEY  FORREST,  President, Student  Government,  University  of                                                              
Alaska  Southeast,  stated her  support  for HB  397  and HB  403,                                                              
paraphrasing  from a  prepared statement,  which  read as  follows                                                              
[original punctuation provided]:                                                                                                
                                                                                                                                
     I am  the President  of the UAS  Student Government.   I                                                                   
     am  the Speaker  Pro-Tem for  the  Coalition of  Student                                                                   
     Leaders.  I  am a senior with one moreyear  to go before                                                                   
     I graduate at  UAS with a BLA in English  Literature and                                                                   
     a minor  in Law.   I wear many caps  but the one  that I                                                                   
     wear today  is that of a  student in financial need.   I                                                                   
     work seven  days a week, either  at one of my  two jobs,                                                                   
     or both,  as the  President of  the Student Body,  which                                                                   
     is a full time  job in itself, or on school  work, which                                                                   
     is   another   full   time   job.      However,   as   a                                                                   
     representative of  the students at UAS it is  my duty to                                                                   
     inform  you   that  there  area  a  number   of  my  own                                                                   
     constituents   who  would   benefit  greatly  from   the                                                                   
     passing  of HB  397y and  403 as  they currently  exist.                                                                   
     As  a  representative   of  the  Coalition   of  Student                                                                   
     Leaders  it  is  my  duty   to  inform  youthat  a  vast                                                                   
     majority  of the  constituents  of my  colleagues  would                                                                   
     benefit  hugely from the  passing of HB  397 and  403 as                                                                   
     brought to you  by the members of this  Legislative body                                                                   
     and  the members  of the  Coalition  of Studen  Leaders.                                                                   
     As a  member of this jury  it is yourduty  to deliberate                                                                   
     and express  you[r] decision on the inception  of HB 397                                                                   
     and  403.   However,  it  is  also  your duty  as  state                                                                   
     representatives  to  be  concerned  with  the  financial                                                                   
     well-being  of  your students  attending  post-secondary                                                                   
     educational  institutes in  Alaska.   It is you[r]  duty                                                                   
     as  a state  representative  to  be concerned  with  the                                                                   
     welfare of the  future of this great state.   Ladies and                                                                   
     gentlemen  of this jury  the students  before you  today                                                                   
     and the students  whose voices do not bet  [to] be heard                                                                   
     are the  future of this  state, a bright future  indeed,                                                                   
     and it  is your duty to provide  for us the means  to be                                                                   
     the growth  you wish us  to be, we  cannot do it  all on                                                                   
     our own.   Give us another avenue to seek  financial aid                                                                   
     from, give  us the means  to attend college  and further                                                                   
     our  dreams,  you  will not  [be]  disappointed  at  the                                                                   
     outcome nor  the caliber of students that  will graduate                                                                   
     and remain  in this great state  of Alaska that  we want                                                                   
     ... to  call home.  Thank  you all for your  support for                                                                   
     the students  of the University of Alaska,  your support                                                                   
     for  higher  education  and   your  support  for  making                                                                   
     Alaska a better state and better home.                                                                                     
                                                                                                                                
6:21:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  spoke of the other needs in  the state, such                                                              
as  programs to  support  the mentally  ill  or senior  care.   He                                                              
pointed out the  difficult choice between funding  a student grant                                                              
program or  replacing federal funds  for the Department  of Health                                                              
and Social  Services.   He asked whether  a student  loan program,                                                              
with incentives  to benefit students  who stay and work  in Alaska                                                              
after  graduation,  would  be  more  effective  than  a  grant  in                                                              
growing Alaska's workforce.                                                                                                     
                                                                                                                                
MS. FORREST  responded that  she was  unsure; however,  she opined                                                              
that   supporting  the   state's   future  leaders   can  not   be                                                              
detrimental to the state.                                                                                                       
                                                                                                                                
REPRESENTATIVE ROSES  said he is not necessarily  against a grant,                                                              
but all of the  options around this issue should  be explored.  He                                                              
described  his personal experience  during  his college years  and                                                              
assured  those attending  college now  that the  committee has  an                                                              
understanding of their situation.                                                                                               
                                                                                                                                
6:26:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA pointed  out that,  without a state  income                                                              
tax,   Alaska  residents   have   a  disassociation   with   state                                                              
government.   In addition,  Alaska does  not produce a  sufficient                                                              
number  of  professionals  and must  pay  a  high price  to  bring                                                              
people in, especially  in the fields of health  and education. She                                                              
opined that  HB 397 and  HB 403 will  entice graduates to  stay in                                                              
the  state. Representative  Cissna  asked  Ms. Forrest  whether  a                                                              
large, or  a smaller,  debt after  graduation will keep  graduates                                                              
in Alaska.                                                                                                                      
                                                                                                                                
MS. FORREST  responded that  a student with  a smaller  debt would                                                              
be more  willing to stay  in Alaska because  entry level  jobs pay                                                              
less here.  Her  experience is that students can  go to school and                                                              
live  more cheaply  in  other states,  thus  graduating with  less                                                              
debt.   Ms.  Forrest  shared her  personal  plan  to leave  Alaska                                                              
after graduation.                                                                                                               
                                                                                                                                
6:31:59 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON  related   a  personal  history  of   education  and                                                              
repaying school  loans.   She then reminded  the witnesses  of the                                                              
source of the state's wealth.                                                                                                   
                                                                                                                                
6:34:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  spoke regarding  the "brain drain"  and how                                                              
students  who  go  outside  to college  choose  spouses  and  jobs                                                              
during their  time at  college and stay  outside.  If  legislators                                                              
want  people to  stay in  Alaska,  the legislature  needs to  help                                                              
them  graduate  from   college  in  Alaska.     He  expressed  his                                                              
frustration at funding  the senior bonus instead  of programs that                                                              
will keep  young people  in Alaska and  free from the  limitations                                                              
of large  amounts of debt.   Representative Seaton stated  that it                                                              
is good  policy to  provide a  program that  requires students  to                                                              
maintain a  high level  of academic  achievement and he  indicated                                                              
his support for the bill.                                                                                                       
                                                                                                                                
6:39:03 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON closed public testimony.                                                                                           
                                                                                                                                
6:39:12 PM                                                                                                                    
                                                                                                                                
[HB 397 was held over.]                                                                                                         

Document Name Date/Time Subjects