Legislature(2023 - 2024)SENATE FINANCE 532

03/14/2024 01:30 PM Senate FINANCE

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Audio Topic
01:44:08 PM Start
01:45:40 PM HB148
02:33:11 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
*+ HB 148 AK PERFORMANCE SCHOLARSHIP; ELIGIBILITY TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      March 14, 2024                                                                                            
                         1:44 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:44:08 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Olson called the Senate Finance Committee meeting                                                                      
to order at 1:44 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Donny Olson, Co-Chair                                                                                                   
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Jesse Kiehl                                                                                                             
Senator Kelly Merrick                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator David Wilson                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative Justin Ruffridge, Sponsor; Bud Sexton,                                                                           
Staff, Representative Ruffridge; Sana Efird, Executive                                                                          
Director, Alaska Commission on Postsecondary Education.                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Dr. Paul Layer, Vice President for Academics, Students, and                                                                     
Research, University of Alaska.                                                                                                 
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSHB 148(FIN)                                                                                                                   
          AK PERFORMANCE SCHOLARSHIP; ELIGIBILITY                                                                               
                                                                                                                                
          CSHB 148(FIN) was HEARD and HELD in committee for                                                                     
          further consideration.                                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 148(FIN)                                                                                                
                                                                                                                                
     "An Act relating to  the Alaska performance scholarship                                                                    
     program."                                                                                                                  
                                                                                                                                
1:45:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JUSTIN   RUFFRIDGE,   SPONSOR,   introduced                                                                    
himself and his family. He briefly discussed the bill.                                                                          
                                                                                                                                
1:48:28 PM                                                                                                                    
                                                                                                                                
BUD SEXTON, STAFF, REPRESENTATIVE RUFFRIDGE, discussed the                                                                      
presentation, "House Education Committee Bill: SB 148"                                                                          
(copy on file).                                                                                                                 
                                                                                                                                
Mr.   Sexton   addressed    slide   2,   "APS   Statistics":                                                                    
                                                                                                                                
     2011-Alaska Performance Scholarship was first offered                                                                      
     30,695- Total  number of students  who have  earned the                                                                    
     APS                                                                                                                        
     12,253- Total Number of students who have used the APS                                                                     
     More than $112 million awarded to students                                                                                 
                                                                                                                                
Mr. Sexton pointed to slide 3, "HB 148 addresses identified                                                                     
problems":                                                                                                                      
                                                                                                                                
     Notification issues                                                                                                        
     Financial barriers                                                                                                         
     APS trends                                                                                                                 
     Testing barriers                                                                                                           
     APS eligibility challenges                                                                                                 
     "Step-up" provision                                                                                                        
     CTE pathways                                                                                                               
                                                                                                                                
Mr. Sexton looked at slide 4, "Notification":                                                                                   
                                                                                                                                
     Problem: students are not aware  of the APS eligibility                                                                    
     soon  enough  in  order   to  influence  their  college                                                                    
     decision  to stay  in  Alaska  for their  postsecondary                                                                    
     education.                                                                                                                 
                                                                                                                                
     30 percent- percentage of students  who did not use the                                                                    
     APS stated  it was  because they  had already  made the                                                                    
     decision  to attend  school  outside  Alaska when  they                                                                    
     learned of their APS eligibility.                                                                                          
                                                                                                                                
     Solution: HB 148 adds several new dates.                                                                                   
                                                                                                                                
Mr. Sexton discussed slide 5, "HB 148 adds no date 1":                                                                          
                                                                                                                                
     Notification of  the Alaska Performance  Scholarship in                                                                    
     the ninth and tenth grades.                                                                                                
                                                                                                                                
     Goal  is  to  create  higher awareness  of  the  Alaska                                                                    
     Performance  Scholarship  award levels  and  associated                                                                    
     requirement and pathways.                                                                                                  
                                                                                                                                
Mr. Sexton displayed slide 6, "HB 148 adds new date 2":                                                                         
                                                                                                                                
     18 months before graduation (previously 6 months)                                                                          
                                                                                                                                
     The  Alaska   Commission  of   Postsecondary  Education                                                                    
     (ACPE) shall award an APS to a student:                                                                                    
                                                                                                                                
     Has completed,  is enrolled in,  or plans to  enroll in                                                                    
     coursework to earn and Alaska Performance Scholarship.                                                                     
                                                                                                                                
Mr. Sexton discussed slide 7, "HB 148 adds new date 3":                                                                         
                                                                                                                                
     By December 31                                                                                                             
                                                                                                                                
     The date when a district  shall notify students who are                                                                    
     enrolled in  the junior year of  the requirements, they                                                                    
     need   to   complete   for   the   Alaska   Performance                                                                    
     Scholarship.                                                                                                               
                                                                                                                                
1:51:41 PM                                                                                                                    
                                                                                                                                
Mr. Sexton pointed to slide 8, "HB 148 adds new date 4":                                                                        
                                                                                                                                
     August 15 (previously September 30)                                                                                        
                                                                                                                                
     Final  verification has  been made  and the  commission                                                                    
     shall make  notification to a senior  who has graduated                                                                    
     and  they  have met  all  of  the requirements  for  an                                                                    
     Alaska Performance Scholarship.                                                                                            
                                                                                                                                
Mr. Sexton looked at slide 9, "Cost of attendance changes                                                                       
1010-2023."                                                                                                                     
                                                                                                                                
Mr. Sexton addressed slide 10, "APS awards":                                                                                    
                                                                                                                                
     Issue: The  Alaska Performance Scholarship  awards have                                                                    
     remained  the same  since inception  of the  program in                                                                    
     2011.  Tuition, books,  fee, etc.  have increased  over                                                                    
     the past 12 years.                                                                                                         
                                                                                                                                
Mr. Sexton discussed slide 11, "APS use decreasing":                                                                            
                                                                                                                                
     The percentage  of students using the  APS has steadily                                                                    
     decreased since 2011, with only  17 percent of students                                                                    
    in 2023 eligible (lowest since program inception).                                                                          
                                                                                                                                
Mr. Sexton pointed to slide 12, "APS Trend: Contributing                                                                        
factors":                                                                                                                       
                                                                                                                                
     2016 change in state policy                                                                                                
     2016 is the  last year the state required  and paid for                                                                    
     high school students to take a standardized test.                                                                          
                                                                                                                                
     Fiscal influences decisions                                                                                                
     The  2018  veto of  the  APS  (later reversed)  created                                                                    
     uncertainty  for graduates  and their  families in  the                                                                    
     college  decision-making  process.  Additional  funding                                                                    
     questions  over the  last several  years contribute  to                                                                    
     uncertainty.                                                                                                               
                                                                                                                                
     Standardized tests                                                                                                         
     Access  to test  locations,  costs,  and difficulty  of                                                                    
     meeting required cut scores.                                                                                               
                                                                                                                                
1:54:27 PM                                                                                                                    
                                                                                                                                
Mr. Sexton looked at slide 13, "Standardized Testing":                                                                          
                                                                                                                                
     3,000                                                                                                                      
     The number of students taking the SAT or ACT in 2017                                                                       
     A decrease  from 4,100 students in  2016 (state stopped                                                                    
     paying for test0                                                                                                           
                                                                                                                                
     National change                                                                                                            
     A 2020  University of Chicago  study found  grades were                                                                    
     five times  better than the  ACT at  predicting college                                                                    
     success.                                                                                                                   
                                                                                                                                
     Research finds test  scores disproportionately serve as                                                                    
     barriers  for  underrepresented minorities,  low-income                                                                    
     students, and English language learners.                                                                                   
                                                                                                                                
Mr. Sexton highlighted slide 14, "Barriers to Eligibility."                                                                     
                                                                                                                                
Mr. Sexton discussed slide 15, "Test case: no standardized                                                                      
testing":                                                                                                                       
                                                                                                                                
     During the  COVID-19 pandemic, standardized  tests were                                                                    
     discontinued for 2020 graduates.                                                                                           
                                                                                                                                
Mr. Sexton looked at slide 16, "Change in requirements":                                                                        
                                                                                                                                
     CS  version  gives  students  the  option  of  choosing                                                                    
     either  their  GPA  or   testing  results  for  initial                                                                    
     eligibility.                                                                                                               
                                                                                                                                
Mr. Sexton pointed to slide 17, "Step-up provision":                                                                            
                                                                                                                                
     If students  increase their  GPA (or  equivalent) while                                                                    
     in college they can increase their APS award level.                                                                        
                                                                                                                                
1:58:21 PM                                                                                                                    
                                                                                                                                
Mr. Sexton discussed slide 18, "APS encourages college                                                                          
graduates."                                                                                                                     
                                                                                                                                
Mr. Sexton displayed slide 19, "Extends eligibility":                                                                           
                                                                                                                                
     HB 148 extends the time period  to use the APS from six                                                                    
     years to eight years.                                                                                                      
                                                                                                                                
     Students can only use four  years of APS funding during                                                                    
     that eight-year time period.                                                                                               
                                                                                                                                
Mr. Sexton pointed to slide 20, "Graduates staying in                                                                           
Alaska."                                                                                                                        
                                                                                                                                
Mr. Sexton looked at slide 21, "Percent Alaska HS graduates                                                                     
enrolled in PSA immediately following HS graduation":                                                                           
                                                                                                                                
     The percentage of students enrolling  in college out of                                                                    
     state remains relatively unchanged                                                                                         
                                                                                                                                
     The  percentage of  students  enrolling  in college  in                                                                    
     state is decreasing                                                                                                        
                                                                                                                                
Mr. Sexton addressed slide 22, "Cumulative count of                                                                             
students: Total, In State Out of State":                                                                                        
                                                                                                                                
     Of students  attending postsecondary  education out-of-                                                                    
     state  only  35  percent  return   to  Alaska  and  our                                                                    
     workforce                                                                                                                  
                                                                                                                                
     Over  the last  3 years,  4,000 to  5,700 fewer  Alaska                                                                    
     students per year have not  pursued college in-state or                                                                    
     out-of-state.                                                                                                              
                                                                                                                                
Mr. Sexton pointed to slide 23, "CTE + postsecondary                                                                            
schooling":                                                                                                                     
                                                                                                                                
     24 Alaska postsecondary  institutions qualify to enroll                                                                    
     students with APS                                                                                                          
                                                                                                                                
Mr. Sexton looked at slide 24, "Workforce Development":                                                                         
                                                                                                                                
     A  study   by  the  Alaska  Department   of  Labor  and                                                                    
     Workforce  Development  from  the graduating  class  of                                                                    
     2015,  2016,   2017  measuring  the  number   that  are                                                                    
     employed six years after graduation.                                                                                       
                                                                                                                                
Mr. Sexton discussed slide 25, "HB 148 benefits":                                                                               
                                                                                                                                
     Notification issues                                                                                                        
     Financial barriers                                                                                                         
     APS trends                                                                                                                 
     Testing barriers                                                                                                           
     APS eligibility challenges                                                                                                 
     Step-up provision                                                                                                          
     CTE pathways                                                                                                               
                                                                                                                                
2:03:05 PM                                                                                                                    
                                                                                                                                
Senator Kiehl wondered whether the sponsor would be open to                                                                     
allowing for part-time students to use the scholarship.                                                                         
                                                                                                                                
Representative Ruffridge replied in the affirmative.                                                                            
                                                                                                                                
Mr. Sexton furthered that there was an opportunity for                                                                          
part-time students, but was not currently in the bill.                                                                          
                                                                                                                                
2:05:08 PM                                                                                                                    
                                                                                                                                
Senator   Kiehl   wondered   whether    a   student   in   a                                                                    
correspondence school that was not within the district                                                                          
would have access to the scholarship opportunity.                                                                               
                                                                                                                                
Representative  Ruffridge replied  in  the affirmative,  but                                                                    
there were some  options that needed to be  addressed in the                                                                    
independent homeschooling.                                                                                                      
                                                                                                                                
Mr. Sexton  furthered that there  was a process  through the                                                                    
Department  of Education  and  Early  Development (DEED)  to                                                                    
walk their way through the process.                                                                                             
                                                                                                                                
Senator Merrick requested the "all  others" by recipient and                                                                    
institution.                                                                                                                    
                                                                                                                                
Mr. Sexton  agreed to provide  that information,  and stated                                                                    
that there was a list of recipients by school district.                                                                         
                                                                                                                                
Co-Chair Olson wondered whether there  was a record of those                                                                    
who had completed their degree or certificate.                                                                                  
                                                                                                                                
Mr. Sexton deferred to DEED.                                                                                                    
                                                                                                                                
2:11:17 PM                                                                                                                    
                                                                                                                                
SANA  EFIRD,   EXECUTIVE  DIRECTOR,  ALASKA   COMMISSION  ON                                                                    
POSTSECONDARY  EDUCATION,  stated  that  there  was  no  GPA                                                                    
requirement for  the Alaska Education Grant,  and was needs-                                                                    
based financial aid.                                                                                                            
                                                                                                                                
Co-Chair  Olson queried  the difference  in GPA  requirement                                                                    
between   the  Alaska   Education  Grant   and  the   Alaska                                                                    
Performance Scholarship.                                                                                                        
                                                                                                                                
Ms.   Efird  replied   that  the   scholarship  had   a  GPA                                                                    
requirement  based on  the tier  requirement, and  the grant                                                                    
only  required that  the student  be enrolled  in a  program                                                                    
instate and have a demonstrated financial need.                                                                                 
                                                                                                                                
Co-Chair  Olson wondered  whether  students  enrolled in  an                                                                    
out-of-state program  could qualify for either  the grant or                                                                    
the scholarship application.                                                                                                    
                                                                                                                                
Ms. Efird replied in the negative.                                                                                              
                                                                                                                                
2:15:37 PM                                                                                                                    
                                                                                                                                
Ms. Efird  addressed the three fiscal  notes associated with                                                                    
the bill.                                                                                                                       
                                                                                                                                
2:21:23 PM                                                                                                                    
                                                                                                                                
Co-Chair Olson  wondered whether  the department  could hold                                                                    
onto the funds for future appropriations.                                                                                       
                                                                                                                                
Ms.  Efird   stated  that  the   money  was  only   for  the                                                                    
scholarship.                                                                                                                    
                                                                                                                                
Senator Bishop  asked about  the pay per  year for  the Work                                                                    
KEYS program before it was eliminated in 2016.                                                                                  
                                                                                                                                
Ms.   Efird   responded   that  she   would   provide   that                                                                    
information.                                                                                                                    
                                                                                                                                
Senator Bishop remarked  that he used the  data through Work                                                                    
KEYS,  because  it  showed that  25  percent  of  graduating                                                                    
students  go to  university and  the remaining  go into  the                                                                    
workforce immediately or train for a trade.                                                                                     
                                                                                                                                
Ms. Efird stated that the  bill increased the trade training                                                                    
opportunities for students.                                                                                                     
                                                                                                                                
Senator  Kiehl  asked  about the  alternate  evaluation  for                                                                    
independent homeschool students.                                                                                                
                                                                                                                                
Ms. Efird stated that the approvals fell under DEED>                                                                            
                                                                                                                                
2:25:59 PM                                                                                                                    
                                                                                                                                
DR. PAUL LAYER, VICE  PRESIDENT FOR ACADEMICS, STUDENTS, AND                                                                    
RESEARCH, UNIVERSITY  OF ALASKA (via  teleconference), spoke                                                                    
in support of the bill.                                                                                                         
                                                                                                                                
2:29:59 PM                                                                                                                    
                                                                                                                                
Co-Chair Olson  wondered whether the caliber  of student had                                                                    
gotten better or worse over the years.                                                                                          
                                                                                                                                
Mr. Layer replied that there  were a wide range of students,                                                                    
and   noted  that   scholarship   recipients  retained   and                                                                    
graduated at a high rate.                                                                                                       
                                                                                                                                
Co-Chair  Olson  wondered  whether  a  high  school  student                                                                    
needed to pay for any  college courses they might take while                                                                    
still in high school, and  whether the scholarship could pay                                                                    
for those courses.                                                                                                              
                                                                                                                                
Ms. Efird  replied that  the scholarship  could not  pay for                                                                    
dual enrollment, but some districts  paid for the student to                                                                    
attend college level courses.                                                                                                   
                                                                                                                                
2:32:18 PM                                                                                                                    
                                                                                                                                
Co-Chair  Olson   surmised  that  if  the   funds  were  not                                                                    
available,  then  the  child  could  not  take  the  college                                                                    
course.                                                                                                                         
                                                                                                                                
Ms. Efird  stressed that qualifications for  the scholarship                                                                    
required  completion  of  the  curriculum  outlined  in  the                                                                    
statute, which occurred upon graduation.                                                                                        
                                                                                                                                
CSHB 148(FIN)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
2:33:11 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:33 p.m.                                                                                          

Document Name Date/Time Subjects
HB 148 Support_Redacted as of 1.29.24.pdf SFIN 3/14/2024 1:30:00 PM
HB 148
HB 148 Summary of Changes.pdf SFIN 3/14/2024 1:30:00 PM
HB 148
HB 148 Sponsor Statement.pdf SFIN 3/14/2024 1:30:00 PM
HB 148
HB 148 Sectional Analysis 1.27.24 for new CS.pdf SFIN 3/14/2024 1:30:00 PM
HB 148
HB 148 Resolution #24-06_ Support for HB 148.docx.pdf signed.pdf SFIN 3/14/2024 1:30:00 PM
HB 148
HB 148 Opposition_Redacted as of 1.29.24.pdf SFIN 3/14/2024 1:30:00 PM
HB 148
HB 148 Rep.Ruffridge Presentation.pdf SFIN 3/14/2024 1:30:00 PM
HB 148
HB 148 APS_At-A-Glance_2024 1.27.24.pdf SFIN 3/14/2024 1:30:00 PM
HB 148
HB 148 APS School districts data 1.31.24.pdf SFIN 3/14/2024 1:30:00 PM
HB 148
HB 148 ACPE_APS_Program_Review_and_Recs_2021 (1).pdf SFIN 3/14/2024 1:30:00 PM
HB 148