Legislature(2023 - 2024)ADAMS 519
02/14/2024 08:30 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB81 | |
| HB148 | |
| HB193 | |
| HB155 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 81 | TELECONFERENCED | |
| += | HB 148 | TELECONFERENCED | |
| += | HB 193 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 155 | TELECONFERENCED | |
HOUSE BILL NO. 148
"An Act relating to the Alaska performance scholarship
program."
8:52:52 AM
Co-Chair Foster noted there were no amendments for the
bill. He stated that the committee would review the four
fiscal notes. He asked the director of the Alaska
Commission on Postsecondary Education (ACPE) with the
Department of Education and Early Development (DEED) to
review the first three notes.
SANA EFIRD, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT, began with OMB component number 2990
pertaining to student financial aid programs. The note
pertained to the Alaska Performance Scholarship (APS)
awards passed through as grants on the grants and benefits
line and funded through the Higher Education Investment
Fund. The note included $2,264,000 for FY 25, $2,404,200
for FY 26, $2,545,700 for FY 27, $2,688,700 for FY 28,
$2,833,100 for FY 29, and $2,978,900 for FY 30. The bill
amended the qualification criteria for the APS applicant by
adding an option for and expanding career and technical
education to the academic curriculum. The bill inserted the
definition for career cluster, removed the minimum score on
a college entrance or standardized examination requirement
for eligibility and added language to allow for a GPA or
minimum college entrance examination to qualify, instead of
requiring both. The bill added a requirement for school
districts to notify students in their junior year of their
progress towards earning APS eligibility and it required
thth
districts to inform students in 9 and 10 grade about the
performance scholarship. The legislation increased the
annual award amounts and provided an additional two years
for students to use the scholarship after high school
graduation, expanding the time from six to eight years. The
bill allowed eligible award recipients to qualify for an
increased award level while enrolled at a qualified
postsecondary institution, which was a step-up provision.
Ms. Efird continued to review OMB component number 2990.
She highlighted that APS award amounts were being increased
from $4,755 to $7,000 annually for level one, $3,566 to
$5,250 annually for level two, and $2,378 to $3,500
annually for level three. A table on the fiscal note showed
the requirements for the GPA or the minimum scores on the
college entrance exams. In order to come up with an
estimate for the note, ACPE had considered all of the
potential changes in the eligibility requirements resulting
from the legislation and a possible increase in the number
of scholarship eligible students. Additionally, the
increase in award amounts could increase the current
appropriation. Therefore, the calculation estimate for the
APS fiscal note award amount assumptions began with FY 23
(the most recent completed class) as a base. The note
applied the increase scholarship amounts included in the
bill to the FY 23 numbers and projected a 2 percent
increase in student usage for FY 25 due to expanded
eligibility criteria. The subsequent years projected a 1
percent increase in the number of students per year.
8:59:05 AM
Representative Josephson stated that the legislature had
recapitalized the Higher Education Investment Fund with
close to $400 million and had passed a law making it a
separate fund to prevent the funds from being swept. He
remarked that many legislators had shown a real commitment
to the fund. He asked if the draw would be sustainable.
Ms. Efird responded that the fiscal note was an estimate.
She elaborated that ACPE wanted to put forward a good
faith, transparent number that could result from the bill;
however, currently, the appropriation for the APS award was
$11,750,000. She explained that in the past year, APFC had
awarded less than $8 million of the funds. She relayed that
the investment of the fund was managed by the Department of
Revenue (DOR) and she did not want to speak on its behalf
in terms of sustainability. She explained that DOR provided
a 7 percent calculation of the balance to ACPE to
distribute two-thirds to the APS and one third for the
Alaska education grants. In FY 24, the 7 percent equaled
$26.6 million with $17.7 million for the APS; however, only
$11.75 million was appropriated and slightly under $8
million was actually used. The Alaska education grant had
an available $8.8 million to use in FY 24; however, only
$5.8 million was appropriated. She clarified that up to the
current point, ACPE had not used the 7 percent total
calculation available under statute from the Higher
Education Investment Fund; however, any questions about the
investments and gains and losses should be directed to DOR.
Ms. Efird speculated it would be five or so years before
there may be a concern [about the fund balance]. She
underscored that she was not an investment expert. She
believed committee members had the most recent APS report
showing how the use of the APS had been declining. The
current usage was less than half of the peak usage number.
She thought it would take four to five years to see all of
the new changes opening doors for other students. She
stated that there may be a question or funds needed to
recapitalize the fund in the future. She emphasized it was
a tool that would make a difference for the state's
workforce.
Co-Chair Foster recognized that Representative Louise
Stutes was in the audience. He noted that the bill was
sponsored by the House Education Committee and he
recognized members from that committee including
Representative Justin Ruffridge (co-chair) and
Representative Andi Story.
9:04:29 AM
Representative Galvin remarked on the bill's language that
students would be notified of the APS in their junior and
possibly sophomore years. She asked if the notification
went home for parents to see as well.
Ms. Efird responded that she was not certain but believed
it was students. She would have to double check to verify
the information.
Representative Galvin replied that she was very happy to
support the legislation and the answer was not pertinent to
her support.
9:05:23 AM
Ms. Efird moved to the second fiscal note OMB Component
number 3340 for the Alaska Education Grant Program. The
grant program was funded through the Higher Education
Investment Fund in the amount of $1,165,200 in FY 25,
$1,235,300 in FY 26, $1,306,100 in FY 27, $1,377,500 in FY
28, $1,449,700 in FY 29, and $1,522,600 in FY 30. Based on
current statute, the grant would increase as a result of
the projected APS increase in the bill. She explained that
under AS 14.43.915(c) one-third of the combined amount
shall be available solely for payment of grants awarded.
Statute directed ACPE to annually allocate two-thirds of
the combined amount in the accounts to eligible APS
applicants. She elaborated that if an insufficient number
of qualified applicants were awarded grants or scholarships
or both, the commissioner was directed to redeposit the
remaining funds into the Alaska Higher Education Investment
Fund. She noted that if the appropriation increased for the
APS, it would also increase for the Alaska Education Grant
proportionately.
9:08:17 AM
Ms. Efird reviewed OMB component number 2738 for ACPE
program administration and operation. The note pertained to
administrative allocation for staffing charged with
implementing the program. The note included one-time costs
of $31,200 for personal services and $16,000 in the
services category for a total of $47,200. She explained
that all of the eligibility qualification changes in the
two programs would require working with a contractor on the
changes to the Alaska Student Aid Portal managed by ACPE.
She elaborated that the portal was the platform used to
receive information from DEED for eligibility of students
and disbursement to the institutions and certification of
students. Additionally, the note included $6,000 for
regulation changes needed on the postsecondary side and
$10,000 to update the student portal.
9:10:37 AM
Co-Chair Foster recognized House Education Committee member
Representative Rebecca Himschoot in the committee room.
Co-Chair Foster asked for a review of the final fiscal
note.
DEB RIDDLE, OPERATIONS MANAGER, DIVISION OF INNOVATION AND
EDUCATION EXCELLENCE, DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT, reviewed OMB component number 2796. She
relayed that the fiscal note included a one-time cost of
$6,000 for updating regulations on the K-12 side of the
APS, which would include updating the curriculum options
providing information about the notification for students
and removing testing qualifications as outlined in the law.
The regulations would be updated in order for districts to
have the necessary guidance to work on the scholarship with
students.
9:12:19 AM
Co-Chair Johnson MOVED to REPORT CSHB 148(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 148(FIN) was REPORTED out of committee with ten "do
pass" recommendations and one "no recommendation"
recommendation and with four new fiscal impact notes from
the Department of Education and Early Development.
9:13:18 AM
AT EASE
9:15:15 AM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 193 Amendments 1-2 021324.pdf |
HFIN 2/14/2024 8:30:00 AM |
HB 193 |
| HB 155 Amendment 1 Hannan 021324.pdf |
HFIN 2/14/2024 8:30:00 AM |
HB 155 |
| HB 193 Amendment 1 Backup DEED BAG 021424.pdf |
HFIN 2/14/2024 8:30:00 AM |
HB 193 |
| HB 193 Amendment 1 Backup E-Rate_Recipient_Details_And_Commitments_20240125_E-Rate_FY2023_School_Internet.pdf |
HFIN 2/14/2024 8:30:00 AM |
HB 193 |