Legislature(2011 - 2012)CAPITOL 106

02/28/2011 08:00 AM House EDUCATION


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Audio Topic
08:04:15 AM Start
08:05:01 AM Presentation(s): Yupiit School District Superintendent
08:51:20 AM HB104
09:18:23 AM Presentation(s): University of Alaska Chancellors
10:02:46 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation by Yupiit School District TELECONFERENCED
Superintendent
+= HB 104 ALASKA PERFORMANCE SCHOLARSHIPS TELECONFERENCED
Heard & Held
<Bill Hearing Rescheduled from 2/25/11>
+ Presentation by University of Alaska Chancellors TELECONFERENCED
+ Bills Previously Heard/Scheduled TELECONFERENCED
             HB 104-ALASKA PERFORMANCE SCHOLARSHIPS                                                                         
                                                                                                                                
CHAIR DICK  announced that  the next 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."   [In front  of the committee  was the  proposed committee                                                               
substitute (CS) for HB 104, Version  I, adopted as the work draft                                                               
on February 9, 2011]                                                                                                            
                                                                                                                                
8:51:20 AM                                                                                                                    
                                                                                                                                
CHAIR DICK  stated that discussion  needed to focus on  the needs                                                               
based   component,   mentoring,  university   capacity,   funding                                                               
sources, and qualification by students from smaller schools.                                                                    
                                                                                                                                
8:52:02 AM                                                                                                                    
                                                                                                                                
DIANE  BARRANS,   Executive  Director,   Postsecondary  Education                                                               
Commission, Department of Education  and Early Development (EED),                                                               
specified that she had participated  on the task force for higher                                                               
education funding.   She reported that a lot  of discussion prior                                                               
to  the  task force  questioned  the  adequacy  of the  level  of                                                               
funding  for   the  needs   based  program,   the  AlaskAdvantage                                                               
Education Grant.   She pointed out that this  grant was available                                                               
to any  resident attending  an in-state  educational institution,                                                               
but that funding had only  been sufficient for a small percentage                                                               
of  those  eligible.     She  noted  that  the   task  force  had                                                               
recommended a  supplemental component,  but she opined  that this                                                               
was  not necessary,  as sufficient  funding for  the needs  based                                                               
grant  program  would  provide   the  opportunity  to  fund  non-                                                               
traditional  students.   She  pointed  out  that the  Senate  had                                                               
recommended sufficient  funding for the  AlaskAdvantage Education                                                               
Grant  program,  instead  of  the   creation  of  a  supplemental                                                               
component  to the  scholarship  program.   She  opined that  this                                                               
maintained clarity  and consistency  between the merit  based and                                                               
needs based programs.                                                                                                           
                                                                                                                                
8:55:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON asked which  program served the  top 10                                                               
percent of each school.                                                                                                         
                                                                                                                                
8:56:25 AM                                                                                                                    
                                                                                                                                
MS. BARRANS  replied that  it was the  University of  Alaska (UA)                                                               
scholars program, funded through the UA resources.                                                                              
                                                                                                                                
8:56:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON asked  what  percentage  of those  who                                                               
applied   for  the   AlaskAdvantage  [Education   Grant]  program                                                               
received funds.                                                                                                                 
                                                                                                                                
8:57:10 AM                                                                                                                    
                                                                                                                                
MS. BARRANS replied that funding  was available for 15-20 percent                                                               
of those eligible.                                                                                                              
                                                                                                                                
8:57:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON remarked that this was pathetic.                                                                       
                                                                                                                                
8:57:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI, stating  that the  federal PELL  Grants                                                               
had been  severely cut back,  asked which students would  be most                                                               
affected.                                                                                                                       
                                                                                                                                
8:57:54 AM                                                                                                                    
                                                                                                                                
MS.  BARRANS clarified  that  although a  reduction  in the  PELL                                                               
Grant  program had  been proposed  in  Congress, it  had not  yet                                                               
occurred.   She stated that  students from families of  four with                                                               
an income less  than $40,000 were eligible for PELL  grants.  She                                                               
declared that the ripple effect  of these reductions would affect                                                               
the  AlaskAdvantage  Education Grant  program.    In response  to                                                               
Representative  Kawasaki,  she  stated   that  the  need  by  the                                                               
applicants would be greater.                                                                                                    
                                                                                                                                
8:59:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE   asked  if   all  of   the  AlaskAdvantage                                                               
Education  Grant  funds  were  being expended.    He  asked  what                                                               
criteria were used for the allocation of the funds.                                                                             
                                                                                                                                
8:59:55 AM                                                                                                                    
                                                                                                                                
MS.  BARRANS said  that the  fund allocation  was strictly  needs                                                               
based.   She explained that  the entire eligible pool  was ranked                                                               
highest  need to  lowest need.   She  declared that  priority was                                                               
given to  full time students.   She added that a  student who had                                                               
shown  higher academic  achievement through  ACT/SAT test  scores                                                               
and students enrolled in career  areas designated as "a workforce                                                               
shortage area" were eligible for  larger grants.  She listed some                                                               
of the shortage areas to  be education, health, social protective                                                               
services,  and  resource process  extraction.    She announced  a                                                               
growth in the  number of students eligible  in workforce shortage                                                               
areas.                                                                                                                          
                                                                                                                                
9:02:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE  asked if students  would be  eligible while                                                               
attending  institutions  included  in the  Western  Undergraduate                                                               
Exchange program agreement.                                                                                                     
                                                                                                                                
MS.  BARRANS replied  that eligibility  was  limited to  students                                                               
attending school in  Alaska, as the idea was to  retain a trained                                                               
workforce.                                                                                                                      
                                                                                                                                
9:04:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   P.  WILSON   asked   how   many  student   grant                                                               
applications  were not  accepted,  and of  these,  how many  were                                                               
unable to attend school as a result.                                                                                            
                                                                                                                                
9:04:38 AM                                                                                                                    
                                                                                                                                
MS. BARRANS replied that there was  not any data for the students                                                               
who did  not attend school.   She  offered her belief  that there                                                               
were 4,200 eligible students while  fewer than 1,000 had received                                                               
grants.  She  added that these students were  already enrolled in                                                               
school, and  that generally  the grant was  not a  determiner for                                                               
enrollment,  but  was used  for  the  management of  their  other                                                               
school expenses.                                                                                                                
                                                                                                                                
9:07:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON  asked how much money  would be required                                                               
to fund all the eligible grant applications.                                                                                    
                                                                                                                                
9:07:28 AM                                                                                                                    
                                                                                                                                
MS.  BARRANS offered  an estimate  of  $4.5 million  to fund  the                                                               
current base allocations.                                                                                                       
                                                                                                                                
9:08:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  asked if  there  was  a fiscal  note  for                                                               
Version I.                                                                                                                      
                                                                                                                                
9:08:26 AM                                                                                                                    
                                                                                                                                
MS. BARRANS  replied that  there was  not a  fiscal note  for the                                                               
needs based component.                                                                                                          
                                                                                                                                
9:08:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON emphasized the need  for a fiscal note.  He                                                               
pointed  out that  the prior  proposed legislation  with a  needs                                                               
based  component,  which  did  not  include  the  non-traditional                                                               
students, had  an estimated fiscal  note of $17-$20 million.   He                                                               
directed attention to  the current cap of $4,000  in the proposed                                                               
committee substitute,  clarifying that there  had not been  a cap                                                               
for  the  needs based  component  in  previous legislation.    He                                                               
reflected  that the  needs based  component and  the merit  based                                                               
component  had  required  similar  funding.   He  asked  how  the                                                               
addition of  the non-traditional students within  the needs based                                                               
component could  now result  in an estimated  cost that  was half                                                               
the merit based component.                                                                                                      
                                                                                                                                
9:11:22 AM                                                                                                                    
                                                                                                                                
MS. BARRANS  noted that  a key  difference for  the cost  of each                                                               
program was the current cap on  the needs based aid.  She pointed                                                               
out  that the  prior  legislation had  included escalating  costs                                                               
tied to  the cost of education.   She stated that  it was unknown                                                               
how  many   qualifying  students  would  come   from  low  income                                                               
families.  She  pointed out that the  demographics of scholarship                                                               
recipients  in many  other  states  reflected a  disproportionate                                                               
scholarship distribution to  families with a history  of going to                                                               
college.   She  noted  that  these families  often  had a  higher                                                               
socio-economic  standing.    She  emphasized  the  importance  of                                                               
having two programs  which worked well together,  needs based and                                                               
merit  based.   She  agreed  that it  was  important  to have  an                                                               
estimate for  cost, but that an  exact fiscal note would  be more                                                               
difficult until  there was a  history to  draw from.   She stated                                                               
that the  AlaskAdvantage Education  Grant program cost  was based                                                               
on the  last three  years of  program cost.   She said  that this                                                               
history would  reflect both  traditional and  non-traditional age                                                               
students in coming years.                                                                                                       
                                                                                                                                
9:14:17 AM                                                                                                                    
                                                                                                                                
MS. BARRANS,  in response to  Representative Seaton,  stated that                                                               
only  students scoring  in  the  top tier  of  test takers  would                                                               
qualify for  the priority level.   She shared that  one suggested                                                               
modification proposed  by the task  force had been to  review the                                                               
academic  priority  for  the  needs based  grant,  and  make  the                                                               
scholarship eligible  students equate to the  academic trigger to                                                               
allow them  grant priority.   She opined that the  programs would                                                               
still  work  well in  conjunction,  and  still maintain  distinct                                                               
scholarship and needs based programs.                                                                                           
                                                                                                                                
9:15:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   P.  WILSON   asked   if  this   could  be   best                                                               
accomplished in statute or in regulation.                                                                                       
                                                                                                                                
9:15:52 AM                                                                                                                    
                                                                                                                                
MS.  BARRANS replied  that currently  this could  be accomplished                                                               
through  regulation,  but  that  the  legislature  could  make  a                                                               
statutory change.                                                                                                               
                                                                                                                                
[HB 104 was held over.]                                                                                                         
                                                                                                                                

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