Legislature(2011 - 2012)CAPITOL 106
02/14/2011 08:00 AM House EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): School Superintendent | |
| HB104 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 104 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 104-ALASKA PERFORMANCE SCHOLARSHIPS
8:18:43 AM
CHAIR DICK announced that the final order of business would be
HOUSE BILL NO. 104, "An Act renaming the Alaska performance
scholarship and relating to the scholarship and tax credits
applicable to contributions to the scholarship; establishing the
Alaska performance scholarship investment fund and the Alaska
performance scholarship award fund and relating to the funds;
making conforming amendments; and providing for an effective
date."
8:19:53 AM
KATIE KOESTER, Staff, Representative Paul Seaton, Alaska State
Legislature, presented the changes represented in Version I, as
reflected in the committee substitute (CS) for HB 104. The
changes are bolded in the handout titled "Alaska Commission on
Postsecondary Education, Work Draft Sectional Analysis,"
prepared by D. Barrans 2/10/11. She emphasized that these
sectional changes are in response to the scholarship task force
recommendations; corresponding, underlined excerpts of which are
included in the committee packet. Section 5 clarifies that, in
the event of a funding shortfall, no "new" APS (Alaska
Performance Scholarship) applications will be awarded. She said
this represents part of the phase down mechanism, to ensure that
outstanding obligations are honored. Section 6 creates needs-
based supplemental aid for students. She directed attention to
the committee handout titled "Attachment 8," to explain the
formula used to arrive at the needs-based figures; addressing
the 2010 Legislative models chart.
8:25:34 AM
REPRESENTATIVE FEIGE observed that the need is based on family
income only, and asked how that is determined.
MS. KOESTER said it is based on family income and the student
must be a recipient of the APS. A completed FAFSA (Free
Application for Federal Student Aid) will be used to make the
needs determination. To a follow-up question she said the
Alaska Commission on Postsecondary Education makes the final
determination of need.
8:27:07 AM
REPRESENTATIVE PRUITT asked what costs above tuition are
qualified expenses.
MS. KOESTER indicated that allowed expenses include room and
board, as well as miscellaneous books and supplies.
REPRESENTATIVE PRUITT inquired whether the award level achieved
for the APS effects the needs-based amount to be received.
MS. KOESTER answered no.
8:28:56 AM
MS. KOESTER continued on page 2 of the sectional handout, to
address the section 5 changes, which require any school
accepting these awards to provide students with counseling
services, including guidance to courses that will assure on-time
degree completion.
8:30:23 AM
REPRESENTATIVE FEIGE pointed out that the UA system allows
faculty family members to attend at a reduced tuition rate. He
suggested stipulating that scholarship awardees be shown
preference, when class space is limited.
MS. KOESTER acknowledged anecdotal reports supporting the
concern, and opined that it would be a policy question for the
committee.
8:32:22 AM
MS. KOESTER moved to section 9, which establishes an
AlaskAdvantage Education Grant (AEG) and APS award income
account in the general fund. It also directs the appropriation
from this fund to recipients, to the lesser of one third of the
fund balance, or $40 million dollars. Sections 11 and 12
replace the Alaska Capital Income Fund (ACIF) with the AEG-APS
fund. She explained that the ACIF was established in 2005 to
collect the earnings of the Amerada Hess permanent fund
principal. Section 13 details how the newly created AEG-APS
fund will function. She then addressed the handout titled "How
AEG-APS Fund Works," prepared by the office of Representative
Seaton, updated 2/11/11, to illustrate the configuration. She
explained that the Amerada Hess fund resulted from a legal
settlement, and is a "fenced off" aspect of the Permanent Fund.
The principal is not accessible, but the interest earnings can
be directed for appropriation; in this case to the AEG-APS.
Also added to the fund is 15 percent of progressivity, the
increase in net oil tax when the net price of oil goes above
$30.00 a barrel profit. The amount received from these two
sources is capped at $40 million per year, and the total award
fund is capped at $160 million. The fund is setup similar to
community revenue sharing, in that a portion is appropriated and
replenished every year. However, if a legislature does not
continue the funding stream, outstanding student contracts will
still be served through the structure established; state
obligations will be met.
8:37:27 AM
MS. KOESTER indicated the handout titled "Alaska Capital Income
Fund (ACIF)(1197)," prepared by Legislative Finance, dated
2/11/11, and said it is a balance sheet to provide additional
details, and pointed out that the year-end earnings balance is
approximately $53 million; proposed to be transferred to the
AEG-APS fund. Responding to a question from the committee, she
stressed that the outlined funding stream is a proposal.
8:39:07 AM
REPRESENTATIVE SEATON clarified that this is similar to the
revenue sharing program, which receives 20 percent of
progressivity.
8:39:20 AM
REPRESENTATIVE PRUITT expressed concern for maintaining
progressivity as an on-going, steady funding source for the
scholarship program.
REPRESENTATIVE SEATON explained that the scholarship task force
was asked specifically to identify funds from oil revenues;
these two funds, Amerada Hess and progressivity, are being
proposed. He stressed that the bill does not inhibit the
legislature from appropriating funding from other sources.
REPRESENTATIVE PRUITT observed that should losses occur in the
Amerada earnings, or progressivity, the legislature may need to
appropriate from the general funds to maintain the $160 million
scholarship fund.
8:42:06 AM
MS. KOESTER resumed with the final two sections, 18 and 22,
which provide the transition language, and a change of the
effective dates, respectively.
8:43:56 AM
DIANE BARRANS, Executive Director, Postsecondary Education
Commission, Department of Education and Early Development (EED),
said this program is critical to the governor's plan for
educational transformation in the state.
8:45:36 AM
REPRESENTATIVE PRUITT asked for a description of the current
funding program.
MS. BARRANS explained that the AlaskAdvantage Education Grant
(AEG) was authorized in 2004, as a follow-up to a smaller state
grant program, which operated from the 1970's through the mid
1990's. The small scale program, supported by general fund and
matching federal dollars, was defunded in the 1990's. In 2005
the needs based AEG program was relaunched. She directed
attention to the handout titled "Current grant criteria," to
explain the program, including the criteria, process, grant
structure, amounts awarded, program funding history, and the
population served in 2009-2010. She said the fund has never
satisfied all of the applicants. The prioritization of awards
target those enrolled in programs where severe workforce
shortages are anticipated or exist, and those whose secondary
school performance demonstrates a high likelihood for
postsecondary education success. She noted that the importance
for families to complete the FAFSA is being promoted across the
state; resulting in a 70 percent increase.
8:56:48 AM
REPRESENTATIVE SEATON mentioned that the average age of awardees
is 30.
The committee took an at-ease from 8:57 a.m. to 9:44 a.m.
9:44:42 AM
MS. BARRANS responded that, historically, the recipients of the
grants have been non-traditional age students. She attributed
this to the fact that these are the students who may have
families and higher costs associated with attending college.
However, in the pool of students served, traditional and non-
traditional exist, and with increased funding more traditional
age students will be served.
9:46:21 AM
REPRESENTATIVE KAWASAKI asked if there is an estimation of how
many students might qualify for AEG and APS funding.
MS. BARRANS agreed to provide that information to the committee.
The committee took an at-ease at 9:47 a.m.
9:49:19 AM
CHAIR DICK asked whether the university is able to provide on
time degree completion, as required by the CS.
SAICHI OBA, Associate Vice President, Student Services &
Enrollment Management, University of Alaska System, said the
university does attempt to provide the appropriate courses for
students to complete two and four year degrees in a timely
manner. Several things influence a student's ability to
complete these degrees within the optimal timeframe, which could
include: requirements for remedial courses, attending as a part-
time student, or taking a term off. He assured the committee
that the answer from the academic officers is, yes, programs can
be completed in accordance with the bill requirements.
9:51:31 AM
REPRESENTATIVE KAWASAKI indicated that there could be overlap on
the number of students receiving the APS and the UA Scholars
awards and asked for an estimate.
MR. OBA responded that it would be difficult to estimate;
however, the possibility does exist and it will become apparent
following the first year of implementation.
9:53:38 AM
REPRESENTATIVE SEATON said the needs-based component, of the
APS, would subtract any UA Scholars receipts; negating concern
for a double award.
MS. BARRANS agreed.
9:55:50 AM
REPRESENTATIVE P. WILSON asked if all student expenses are
considered.
9:56:12 AM
MS. BARRANS replied yes, the cost of attendance includes tuition
and provides for a standardized, institution approved, student
budget.
[HB 104 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2.Excerpts from Scholarshp Funding Task Force Report to the Legislature.pdf |
HEDC 2/14/2011 8:00:00 AM |
HB 104 |
| 3.diagram to explain funding mechaism in CSHB104l.pdf |
HEDC 2/14/2011 8:00:00 AM |
HB 104 |
| 4.Alaska Capital Income Fund 2 11.pdf |
HEDC 2/14/2011 8:00:00 AM |
HB 104 |
| 1.ACPE Sectional CSHB104v.I.pdf |
HEDC 2/14/2011 8:00:00 AM |
HB 104 |