Legislature(2009 - 2010)SENATE FINANCE 532
04/11/2010 11:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB139 | |
| SB174 | |
| SB234 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 139 | TELECONFERENCED | |
| += | SB 174 | TELECONFERENCED | |
| += | SB 234 | TELECONFERENCED | |
| += | HB 292 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 174
"An Act relating to professional student exchange
program availability and conditions for loan
forgiveness."
11:16:45 AM
Co-Chair Hoffman MOVED TO ADOPT WORK DRAFT LS0764\U,
Mischel, 4/10/10 AS THE COMMITTEE SUBSTITUTE. Co-Chair
Stedman OBJECTED.
DARWIN PETERSON, STAFF, SENATOR BERT STEDMAN, explained the
legislation. He explained that the CS contains three
different post secondary education proposals; a merit based
scholarship program, a needs based scholarship program, and
an expansion of eligible students in the Western Interstate
Commission for Higher Education (WICHE) program. Section 1
creates the Alaska Scholars program in statute. The program
currently exists as a University of Alaska scholars
program, but the state has yet to participate. The
university currently contributes $3.8 million from their
land grant trust fund to provide scholarships to those
students who graduate in the top 10 percent of their high
school class. The CS acknowledges the success of the
program by bolstering with state participation. The Alaska
Scholars program will continue to be administered by the
Board of Regents. Alaskan high school students ranking in
the top 15 percent of their class are eligible for a tiered
scholarship. Students in the top five percent of their
class will receive a 100 percent tuition scholarship at the
University of Alaska. The next tier comprises those who
rank in the top six to ten percent of their class and are
eligible for a 75 percent tuition scholarship. The third
tier is comprised of those students who rank in the top 11-
15 percent of their class and are eligible for a fifty
percent scholarship. Students who rank below the top 15
percent are not eligible for a scholarship under this
program.
Mr. Peterson explained that the funding for the
scholarships will include the continued contribution of
$3.8 million dollars annually from the university's land
grant trust fund and the remainder will come from the
general fund. The anticipated cost of the scholarships in
the first year is $11.5 million dollars with $3.8 million
from the university and $7.7 million from the state. The
amount increases each year as new classes of students
enroll until all four classes are filled leveling the
annual cost to approximately $9.2 million in general funds
and $3.8 million in university funds. The board of regents
may adjust the amount of scholarships awarded in the event
the state does not appropriate its share of the funds.
Sections 8 and 9 of the CS are housecleaning amendments
conforming to the new Alaska Scholars program. Section 8
amends AS 1443930 which identify the information made
available to the board of regents. Section 9 makes a cross
reference to the new definition of a qualified high school.
Section 12 repeals the sections of statute that refers to
scholarships for high school graduates offering
scholarships for dormitory rent. Section 13 is an
applicability section which states that only high school
students graduating in the class of 2010 or later are
eligible for the new scholarship program. Section 14
instructs the replacement of the name University of Alaska
scholarships for high school graduates with the Alaska
Scholars program.
Mr. Peterson commented that Sections 2-7 of the bill
includes the needs-based scholarship component which amends
the existing Alaska Advantage education grant program which
closely resembles Senator Ellis' SB 33 heard by the
committee on March 31, 2010. In order to be eligible for a
scholarship, the applicant must demonstrate financial need
in accordance with standards established in federal code.
Scholarships are awarded in the amount not less than $1000
and not more than $5000 per year and not more than a total
of $20,000 per student. The program will continue to be
administered by the Alaska Commission on Post Secondary
Education. The commission is instructed to distribute $10
million annually in scholarships to needy students.
Sections 10 and 11 include the original language in SB 174,
expanding the eligibility of Alaskan students in the
western interstate commission for higher education to
include not fewer than five students in each of the fields
of dentistry, optometry, and pharmacy.
11:22:41 AM
Co-Chair Stedman Removed his OBJECTION. There being NO
OBJECTION, it was so ordered.
SENATOR LINDA MENARD expressed support of the CS and
appreciation for the hearing.
11:23:48 AM
DIANE BARRANS, EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION
COMMISSION, DEPARTMENT OF EDUCATION, stated that the
proposed changes were straightforward, but in respect to
the Professional Student Exchange Program (PSEP) loan she
was not sure if the drafting accomplished the expected
outcome. She understood that rather than eliminating the
loan repayment benefits, the bill instead superimposes the
service obligation and work discharge of WAMI onto these
PSEP loans.
Co-Chair Stedman requested a page reference. Ms Barrans
responded Page 6, Lines 22-24. She added that the new
version establishes a minimum number of seats for
dentistry, optometry and pharmacy; it does not speak to the
other fields of study currently supported through the PSEP
loan program. She did not understand if the intent was to
set the minimum number.
11:27:04 AM
WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS,
UNIVERSITY OF ALASKA, noted continued interest in the
incorporation of the strict merit based program included in
the Governor's Performance Scholarship (GPS) bill. She
believed that the merit based program would change the
goals of the current high school curriculum and get schools
and communities much more involved in the process. She
appreciated the accommodation of university concerns. The
bill provides access to information previously inaccessible
such as names and addresses of students.
11:29:06 AM
Senator Thomas asked if homeschooled children are currently
eligible for the Alaska Scholars grant. Ms. Redman
responded no, only licensed schools in the state are
covered.
Senator Thomas asked how much money the land trust
generates on an annual basis. Ms. Redman responded that the
university is contributing $3.8 million to the program. She
explained that the trust may generate $4 million and does
not generate much income.
Senator Olson asked about the effect of the CS on the
forgiveness of retention and recruitment. Ms. Barrans
responded that the CS would prove helpful in terms of
having a higher rate of return of participants to the
program to the state. The return rate for WICHE is
positive.
11:31:56 AM
Senator Thomas asked about Page 2 and the scholarship
award. He requested an explanation of Page 3 and the
transmission of the bulk amount awarded. Co-Chair Stedman
stated that the questions would be answered in a 24 hour
period.
Co-Chair Stedman noted one fiscal impact note from
Department of Education and Early Development (DEED) for
$230,500 in general funds with the cost increasing in
subsequent years.
SB 174 was HEARD and HELD in Committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 174 2010 0411 Proposed CS SFIN Version U.pdf |
SFIN 4/11/2010 11:00:00 AM |
SB 174 |
| SB 139 2010 0411 Proposed CS FIN Version U.pdf |
SFIN 4/11/2010 11:00:00 AM |
SB 139 |