04/28/2001 09:10 AM House FIN

HOUSE BILL NO. 43                                                                                                             
                                                                                                                                
     An Act relating to reimbursement of certain student                                                                        
     loans; and providing for an effective date.                                                                                
                                                                                                                                
REPRESENTATIVE  JOE GREEN commented  that Alaska is  facing a                                                                   
serious  shortage of  qualified  teachers in  both rural  and                                                                   
urban areas.   The shortage affects the quality  of education                                                                   
for our  young people and  jeopardizes their ability  to meet                                                                   
the challenges that lay ahead.                                                                                                  
                                                                                                                                
Representative Green  declared that the proposed  legislation                                                                   
would   be  a  method   to  attract   and  retain   education                                                                   
professionals.     In   addition   to  attracting   qualified                                                                   
teachers, it  would provide an  incentive for  individuals to                                                                   
attend a  college or university  located within the  State of                                                                   
Alaska.                                                                                                                         
                                                                                                                                
To  be eligible  for the  forgiveness  program an  individual                                                                   
would have had to:                                                                                                              
                                                                                                                                
     ·         Have completed 60 credit hours;                                                                                  
     ·         Obtain a degree or take coursework towards a                                                                     
               teaching certificate or endorsement from an                                                                      
              in-state college or university;                                                                                   
     ·         Be employed in the teaching profession at a                                                                      
               public elementary or secondary school;                                                                           
     ·         Teach in a geographical area where there is a                                                                    
               shortage or in a subject matter that is                                                                          
               undeserved.                                                                                                      
                                                                                                                                
The amount  forgiven would  be up to  100% on any  loan taken                                                                   
after the  individual  had accumulated  the 60 credit  hours.                                                                   
He  summarized  that  passage  of the  bill  would  ease  the                                                                   
financial  burden  of  post-secondary   education,  aide  the                                                                   
recruitment  efforts for  teachers  by making  Alaska a  more                                                                   
desirable place  for teachers to  stay and earn a  living and                                                                   
it would  make significant strides  in relieving  the current                                                                   
teacher shortage in Alaska.                                                                                                     
                                                                                                                                
Representative  Lancaster  questioned the  fiscal  indication                                                                   
for FY2001.   Representative Green explained  that his office                                                                   
had nothing to do with that.                                                                                                    
                                                                                                                                
Representative  Croft referenced the  fiscal note.   He asked                                                                   
if only students who had gotten  their degree from an Alaskan                                                                   
University,   had  been  captured.     Representative   Green                                                                   
explained that  HB 43 does  not require  a prior degree.   He                                                                   
pointed out that  there was a representative  from the Alaska                                                                   
Student Loan Program who could better answer that question.                                                                     
                                                                                                                                
Representative  Hudson  inquired  if  the  legislation  would                                                                   
bring more  Alaskans back  to the State  in lieu  of offering                                                                   
other   recruitment   attractions.     Representative   Green                                                                   
believed that  it would.   He suggested that  the legislation                                                                   
was an  additional application  in how to  get Alaska  out of                                                                   
the  current teaching  dilemma.    He acknowledged  that  the                                                                   
program was experimental.   The program would  help the State                                                                   
to focus  on teaching,  nursing and  the engineering  fields.                                                                   
All those fields  are in great need of further  incentive for                                                                   
the State of Alaska.                                                                                                            
                                                                                                                                
HB 43 was HELD in Committee for further consideration.