01/30/2024 01:30 PM Senate FINANCE

SENATE BILL NO. 56                                                                                                            
                                                                                                                                
     "An Act relating to the Alaska performance scholarship                                                                     
     program."                                                                                                                  
                                                                                                                                
1:37:42 PM                                                                                                                    
                                                                                                                                
Co-Chair Olson relayed that it  was the first hearing for SB
.                                                                                                                             
                                                                                                                                
1:38:04 PM                                                                                                                    
                                                                                                                                
SENATOR FORREST DUNBAR, SPONSOR,  explained that SB 56 would                                                                    
make  improvements  to  the Alaska  Performance  Scholarship                                                                    
(APS).  He  mentioned  the difficulty  of  recruiting  young                                                                    
people to the state, and he  believed the program was a tool                                                                    
that could  be used to  keep young  people in the  state. He                                                                    
explained  that the  APS was  a merit-based  scholarship for                                                                    
high-performing  Alaskan students  to use  at post-secondary                                                                    
Alaskan  institutions. Currently  to  qualify  for the  APS,                                                                    
students must  graduate from an  Alaskan high school  with a                                                                    
minimum  2.5 grade  point average  (GPA), receive  a minimum                                                                    
qualifying  score  on  an approved  college/career  entrance                                                                    
exam, and  take specific  courses. Award amounts  vary based                                                                    
on GPA and college/career entrance exam score.                                                                                  
                                                                                                                                
Senator Dunbar cited  that APS had shown a  sharp decline in                                                                    
usage  in recent  years. He  cited the  APS Outcomes  Report                                                                    
(copy  on   file)  that   indicated  greater   awareness  of                                                                    
placement  exams,  inclination  towards better  grades,  and                                                                    
increased  graduate  school  attendance. He  continued  that                                                                    
participants  consistently demonstrated  increased rates  of                                                                    
Alaska residency  and involvement in Alaskas   workforce. He                                                                    
cited  that   73  percent  of  students   surveyed  in  2023                                                                    
indicated that  APS played a  role in attending  an in-state                                                                    
school.                                                                                                                         
                                                                                                                                
Senator  Dunbar  relayed  that his  staff  would  address  a                                                                    
Sectional  Analysis  and  specified that  there  were  three                                                                    
primary  categories of  challenges that  the bill  sought to                                                                    
address. He  highlighted a notification issue  and contended                                                                    
that students  were notified  of the award  too late  in the                                                                    
[college]  decision-making process.  He cited  that the  APS                                                                    
had  not  kept up  with  inflation  and  had become  a  less                                                                    
powerful tool  as the years  had progressed. He  mentioned a                                                                    
variety of  barriers to eligibility. He  referenced a number                                                                    
of changes made in the House Education Committee.                                                                               
                                                                                                                                
1:41:33 PM                                                                                                                    
                                                                                                                                
JAMES  HOLZENBERG, STAFF  TO  SENATOR  FORREST DUNBAR,  read                                                                    
from a Sectional Analysis (copy on file):                                                                                       
                                                                                                                                
     Section 2:  Adds language  to AS  14.43.820(g) defining                                                                    
     "career  cluster" as  a group  of  jobs and  industries                                                                    
     that are related by skills  or products and renumbering                                                                    
     the subsection accordingly.                                                                                                
                                                                                                                                
     Section  3: Adds  the following  new subsections  to AS                                                                    
     14.43.820:                                                                                                                 
     •  AS  14.43.820  (h)  requiring  districts  to  inform                                                                    
     students in 9th or 10th grade about the Alaska                                                                             
     Performance Scholarship.                                                                                                   
     •   AS  14.43.820   (i)(j)(k)  requiring   students  be                                                                    
     notified of their APS eligibility progress by December                                                                     
     31st  of their  junior year.  Award recipients  must be                                                                    
     notified of  their award  and level  by August  15th of                                                                    
     each year.  Any communications with  students regarding                                                                    
     the APS  must include information about  the ability to                                                                    
     increase   the  scholarship   amount  outlined   in  AS                                                                    
     14.43.825(g)-(i).                                                                                                          
     • AS  14.43.820 (l)(m)  establishing that  an applicant                                                                    
     must be enrolled in  any remaining course requirements,                                                                    
     must have  a qualifying  GPA, and once  graduating from                                                                    
     high school, be enrolled  in a qualifying postsecondary                                                                    
     institution to  receive the award. The  applicant's GPA                                                                    
     upon  graduation will  be used  to  conclude the  final                                                                    
     award   amount.  The   award   would   be  revoked   if                                                                    
     requirements were ultimately not met.                                                                                      
                                                                                                                                
     Section  4: Amends  AS  14.43.25(a)  by increasing  all                                                                    
     award levels  and allowing for  a GPA or  an equivalent                                                                    
     rating established  by the Department of  Education and                                                                    
     Early  Development  or  minimum   score  on  a  college                                                                    
     entrance examination to qualify.  The qualifying GPA or                                                                    
     minimum score and new award level are as follows:                                                                          
     •  Level 1:  3.5 GPA/equivalent  rating or  above or  a                                                                    
     very  high   minimum  score,  $7,000   (increased  from                                                                    
     $4,755)                                                                                                                    
     •  Level 2:  3.0 GPA/equivalent  rating or  above or  a                                                                    
    high minimum score, $5,250 (increased from $3,566)                                                                          
     •  Level 3:  2.5 GPA/equivalent  rating or  above or  a                                                                    
     moderately high score, $3,500 (increased from $2,378)                                                                      
                                                                                                                                
       Section 5:  Amends AS  14.43.25(b) by  increasing the                                                                    
     number  of  years a  student  can  use the  scholarship                                                                    
     after graduating high school from six to eight years.                                                                      
                                                                                                                                
     Section 6:  Adds language  to AS  14.43.25(c) extending                                                                    
     an   award   recipient's   eligibility   to   use   the                                                                    
     scholarship by one semester for  each semester they are                                                                    
     enrolled in  part-time status. They are  still required                                                                    
     to  remain in  good  standing.  Currently, a  part-time                                                                    
     student will  only receive half  of the award  for that                                                                    
     semester and forego the  remaining funds. This language                                                                    
     ensures recipients receive  their full award regardless                                                                    
     of full or part-time enrollment.                                                                                           
                                                                                                                                
     Section 7: Adds  two new subsections (g) and  (h) to AS                                                                    
     14.43.825.                                                                                                                 
     Subsection (g) directs the  Department of Education and                                                                    
     Early Development  to establish regulations  creating a                                                                    
     GPA  equivalent rating  for schools  that do  not award                                                                    
     grades on the traditional 4.0/5.0 grading scale.                                                                           
     Subsection (h)  requires postsecondary  institutions to                                                                    
     review  award  recipients'  grade point  averages  each                                                                    
     time  they complete  two  semesters.  If a  recipient's                                                                    
     postsecondary    institution   grade    point   average                                                                    
     qualifies for  a higher-level award  as outlined  in AS                                                                    
     14.43.25(a),  their  award   amount  will  be  adjusted                                                                    
     accordingly.                                                                                                               
                                                                                                                                
     Section 8:  Adds a conforming change  to the definition                                                                    
     of "grade-point average" in  AS 14.43.849(2) to include                                                                    
     the   equivalent  rating   established  by   Department                                                                    
     regulations   for  schools   that   do   not  use   the                                                                    
     traditional 4.0 or 5.0 grading scale.                                                                                      
                                                                                                                                
1:45:15 PM                                                                                                                    
                                                                                                                                
Senator  Wilson wondered  how the  ninth  and tenth  graders                                                                    
were notified of the scholarship.                                                                                               
                                                                                                                                
Senator Dunbar deferred to the invited testifiers.                                                                              
                                                                                                                                
Senator  Dunbar  stressed  that the  award  amount  had  not                                                                    
changed since  2011, even though there  had been significant                                                                    
inflation since then.                                                                                                           
                                                                                                                                
Co-Chair Olson asked  if the APS was  available for graduate                                                                    
students.                                                                                                                       
                                                                                                                                
Mr. Holzenberg answered affirmatively.                                                                                          
                                                                                                                                
Co-Chair  Olson  asked  if  the  APS  was  only  for  Alaska                                                                    
schools.                                                                                                                        
                                                                                                                                
Senator  Dunbar replied  that the  scholarship was  intended                                                                    
for instate schools.                                                                                                            
                                                                                                                                
1:47:55 PM                                                                                                                    
                                                                                                                                
SANA  EFIRD,   EXECUTIVE  DIRECTOR,  ALASKA   COMMISSION  ON                                                                    
POSTSECONDARY EDUCATION,  cited a survey of  the program and                                                                    
anecdotal information that provided  a number of reasons for                                                                    
why Alaskans were not using  the scholarship. She referenced                                                                    
barriers  that  were  address in  the  bill,  including  the                                                                    
standardized  test  requirement,  late  award  notification,                                                                    
program awareness, and the eroding  value of the reward. She                                                                    
elaborated on  the barriers to  APS use. She  explained that                                                                    
from 2018 on, there had  been some instability in funding of                                                                    
APS.                                                                                                                            
                                                                                                                                
1:54:04 PM                                                                                                                    
                                                                                                                                
Senator Wilson  asked how ACPE  planned to notify  the ninth                                                                    
and tenth graders.                                                                                                              
                                                                                                                                
Ms. Efird  relayed that  the bill  outlined that  the school                                                                    
district would be responsible for notifying students.                                                                           
                                                                                                                                
Senator  Wilson  wondered  if   the  information  was  in  a                                                                    
newsletter.  He  was  concerned  about  consistency  in  how                                                                    
students would be notified of the APS opportunity.                                                                              
                                                                                                                                
Ms. Efird agreed with Senator Wilson.                                                                                           
                                                                                                                                
Senator Merrick  cited the barrier of  lack of accessibility                                                                    
to testing  in rural Alaska.  She asked whether  testing was                                                                    
available online.                                                                                                               
                                                                                                                                
Ms.  Efird  answered  that  the  tests  were  not  available                                                                    
online.                                                                                                                         
                                                                                                                                
Senator  Wilson  asked  if  there  was a  cap  to  how  many                                                                    
students were awarded the APS. He asked about competition.                                                                      
                                                                                                                                
Ms. Efird relayed that there was  not currently a cap on the                                                                    
number of students that could receive the award.                                                                                
                                                                                                                                
Ms.  Efird  felt  that  the  step-up  bill  provision  would                                                                    
address equity.                                                                                                                 
                                                                                                                                
2:01:36 PM                                                                                                                    
                                                                                                                                
Co-Chair Olson asked about potential  penalties if a student                                                                    
was in scholastic trouble.                                                                                                      
                                                                                                                                
Ms.   Efird  stressed   that  the   APS   was  an   academic                                                                    
scholarship.                                                                                                                    
                                                                                                                                
2:02:20 PM                                                                                                                    
                                                                                                                                
Co-Chair Olson  asked if students from  private schools were                                                                    
eligible for the APS.                                                                                                           
                                                                                                                                
Ms.  Efird  answered  "yes," and  thought  her  staff  could                                                                    
address the question relating to private schools.                                                                               
                                                                                                                                
2:03:53 PM                                                                                                                    
                                                                                                                                
KERRY  THOMAS,   DIRECTOR  OF  PROGRAM   OPERATIONS,  ALASKA                                                                    
COMMISSION ON POSTSECONDARY  EDUCATION, replied that private                                                                    
school students  were eligible for the  scholarship, but had                                                                    
a separate process.                                                                                                             
                                                                                                                                
2:05:50 PM                                                                                                                    
                                                                                                                                
Senator Kiehl asked about the average APS award.                                                                                
                                                                                                                                
Ms. Efird deferred to Ms. Thomas.                                                                                               
                                                                                                                                
Ms. Thomas asked for time to provide that answer.                                                                               
                                                                                                                                
Senator Kiehl  recalled that in  2012 when the  bill passed,                                                                    
there had  been guesswork  about determining that  more than                                                                    
half of Alaskan students would be eligible.                                                                                     
                                                                                                                                
Ms. Thomas noted that the average award amount was $3,005.                                                                      
                                                                                                                                
2:11:12 PM                                                                                                                    
                                                                                                                                
DR. PAUL  LAYER, VICE PRESIDENT OF  ACADEMICS, STUDENTS, AND                                                                    
RESEARCH,    UNIVERSITY    OF   ALASKA,    FAIRBANKS    (via                                                                    
teleconference asserted  that the  APS worked  for students.                                                                    
He  discussed eligibility  of  students  and mentioned,  and                                                                    
discussed the  testing requirement. He noted  that all three                                                                    
of  the  University  of  Alaska   schools  had  dropped  the                                                                    
standardized test for admissions,  as had many other schools                                                                    
in the United States.                                                                                                           
                                                                                                                                
2:17:11 PM                                                                                                                    
                                                                                                                                
Co-Chair Olson OPENED public testimony.                                                                                         
                                                                                                                                
Co-Chair Olson CLOSED public testimony.