Legislature(2009 - 2010)BELTZ 105 (TSBldg)

03/01/2010 08:00 AM Senate EDUCATION


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08:08:27 AM Start
08:08:54 AM SB224
09:35:02 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Agenda Change --
+= SB 283 LEGAL AGE FOR SCHOOL ATTENDANCE TELECONFERENCED
<Bill Hearing Postponed>
Bills Previously Heard/Scheduled
+= SB 224 POSTSECONDARY SCHOLARSHIPS TELECONFERENCED
Heard & Held
               SB 224-POSTSECONDARY SCHOLARSHIPS                                                                            
                                                                                                                                
8:08:54 AM                                                                                                                    
CO-CHAIR  THOMAS  announced  that  the  committee  will  continue                                                               
hearing SB  224. He noted that  they have the governor's  bill, a                                                               
committee substitute,  and two amendments  on the table,  as well                                                               
as  a number  of  amendments  that are  being  considered in  the                                                               
House.                                                                                                                          
                                                                                                                                
After the meeting  on Friday, he said, they decided  to set aside                                                               
the  committee  substitute  currently before  the  committee  and                                                               
focus on the bill as handed to them by the governor.                                                                            
                                                                                                                                
8:11:51 AM                                                                                                                    
MURRAY RICHMOND,  aide to Senator  Thomas, said  that discussions                                                               
over the last few weeks have  disclosed five key areas of concern                                                               
with SB  224. Some  members of  the committee  felt that  the new                                                               
curriculum  requirement for  four years  of math,  four years  of                                                               
science, four years  of language arts, and three  years of social                                                               
studies, versus an  option for adding a  foreign language option.                                                               
Adding two  years of foreign  language is  desirable to a  lot of                                                               
folks and the House has an amendment on that.                                                                                   
                                                                                                                                
There were concerns over the  ACT/SAT tests, which were addressed                                                               
by  the  administration on  Friday.  Questions  remain about  how                                                               
specific  that should  be  in the  bill,  but the  administration                                                               
spoke to  why it is  a necessary part  of the program.  There has                                                               
been discussion about  the six-year window, why it is  set at six                                                               
years and whether  it starts at six years, or  ends at six years.                                                               
According  to  the  administration,  the  six-year  window  gives                                                               
students six years during which to  use this scholarship, so if a                                                               
student  started  college  three  years after  high  school,  the                                                               
fourth  year of  college would  not be  funded. At  issue is  the                                                               
value of  the six-year  window and how  the legislation  can make                                                               
allowances for students who cannot graduate in that time.                                                                       
                                                                                                                                
Also  under   discussion  are  provisions  for   the  needs-based                                                               
component,  and finally,  what the  funding limit  and curriculum                                                               
requirements should be for the career scholarship.                                                                              
                                                                                                                                
MR.  RICHMOND walked  the committee  through  the amendments  the                                                               
House has been working on as follows:                                                                                           
-  House Amendment  1 (26G/2)  to HB  297, the  Governor's needs-                                                               
based amendment, provides that the  state will pick up 50 percent                                                               
of a student's unmet need after the $2000 family contribution.                                                                  
                                                                                                                                
8:18:00 AM                                                                                                                    
JOMO STEWART, aide  to Senator Meyer, proposed that  they apply a                                                               
new  numeration system  to these  amendments for  the purpose  of                                                               
clarity.                                                                                                                        
                                                                                                                                
CO-CHAIR THOMAS suggested that  an alphabetical designation might                                                               
be less confusing. He also  recommended that they notate the ones                                                               
that were offered by the governor.                                                                                              
                                                                                                                                
MR. STEWART concurred. He said,  moving through the amendments in                                                               
the members' packets  in the order they appear,  Amendment 2 [26-                                                               
GS2771\E.2],  addressing  intent  language,  will  be  called  A.                                                               
Amendment 1 [26-GS2771\E.1],  regarding non-traditional students,                                                               
will be B. The first House  amendment to HB 297, regarding merit-                                                               
based and needs-based,  will be C. Subsequent  amendments will be                                                               
lettered in sequence.                                                                                                           
                                                                                                                                
MR. RICHMOND continued with the House amendments:                                                                               
- House  Amendment 2  (D), offered by  the Governor,  defines the                                                               
tiers  in terms  of traditional  letter grades.  It is  generally                                                               
advisable not to  define things too narrowly in  statute, but the                                                               
House committee apparently felt  comfortable doing so because the                                                               
grading standard is so well established.                                                                                        
                                                                                                                                
-   House   Amendment   3   (E)   [26-GH2771\A.9],   offered   by                                                               
Representative   Seaton,  changes   the  phrase   "university  or                                                               
college" to "postsecondary institution"  throughout the bill. The                                                               
intent is to  allow scholarships to be used  at any postsecondary                                                               
institution, including career schools.                                                                                          
                                                                                                                                
8:19:58 AM                                                                                                                    
CO-CHAIR  THOMAS   asked  if  Mr.   Richmond  has   verified  his                                                               
understanding of  the intent of  Amendment E  with Representative                                                               
Seaton's staff.                                                                                                                 
                                                                                                                                
MR. RICHMOND said he has.                                                                                                       
                                                                                                                                
SENATOR  DAVIS   requested  that  Mr.  Richmond   identify  which                                                               
amendments were actually adopted by  the House as he goes through                                                               
them.                                                                                                                           
                                                                                                                                
MR. RICHMOND advised  that both of the  governor's amendments and                                                               
Representative Seaton's amendment E were adopted by the House.                                                                  
                                                                                                                                
8:20:38 AM                                                                                                                    
-  House Conceptual  Amendment 4  (F) [26-GH2771\A.1]  was pulled                                                               
and replaced by number 13, which he will cover later.                                                                           
                                                                                                                                
SENATOR OLSON joined the meeting.                                                                                               
                                                                                                                                
MR. RICHMOND presented the following House amendments:                                                                          
                                                                                                                                
-  House Conceptual  Amendment 5  (G) [26-GH2771\A.3]  offered by                                                               
Representative Keller  allows for  tax credits on  donations from                                                               
private sources to  the education fund as it sits  in the general                                                               
fund. - Pulled                                                                                                                  
                                                                                                                                
- House  Conceptual Amendment 6 (H)  [[26-GH2771\A.4], offered by                                                               
Representative  Keller,  requires  that  the  annual  performance                                                               
reports be posted on the web for public viewing. - Pulled                                                                       
                                                                                                                                
8:22:50 AM                                                                                                                    
- House Conceptual Amendment 7 (I)  [no label] adds a new goal by                                                               
inserting the language "(9)  increasing participation from Alaska                                                               
high school  students in  Alaska post-secondary  institutions." -                                                               
Adopted - This amendment was replaced by a later amendment (N).                                                                 
                                                                                                                                
- House  Amendment 8 (J),  offered by Representative  Seaton adds                                                               
provisions  for  the  purpose   of  ensuring  that  the  rigorous                                                               
curriculum  required by  this scholarship  is available  in every                                                               
high school in the state. - Adopted                                                                                             
                                                                                                                                
8:24:02 AM                                                                                                                    
MR. RICHMOND  said the next  amendment was adopted,  but concerns                                                               
were raised by the administration:                                                                                              
                                                                                                                                
-  House  Amendment  9  (K)  [26-GH2771\A.10]  by  Representative                                                               
Gardner provides  that, if a  scholarship award is paid  in error                                                               
through  no  fault  of  the  student, the  student  will  not  be                                                               
penalized. - Adopted                                                                                                            
                                                                                                                                
CO-CHAIR THOMAS  asked for clarification  on the types  of errors                                                               
this covers.                                                                                                                    
                                                                                                                                
8:25:21 AM                                                                                                                    
MR. RICHMOND replied  that the language specifies  any error "not                                                               
due to any fault of the student."                                                                                               
                                                                                                                                
8:25:44 AM                                                                                                                    
CO-CHAIR  MEYER  stated  that  he too  has  concerns  about  this                                                               
amendment.                                                                                                                      
                                                                                                                                
8:26:12 AM                                                                                                                    
MR. RICHMOND continued:                                                                                                         
                                                                                                                                
-  House Amendment  10  (L)  [26-GH2771\A.17] by  Representatives                                                               
Gardner and Buch replaces the  word "academic" with "performance"                                                               
throughout the bill,  which changes what the award  is called and                                                               
takes care of  the division between career  and academic schools.                                                               
- Adopted                                                                                                                       
                                                                                                                                
8:26:54 AM                                                                                                                    
- House Amendment 11 (M)  [26-GH2771\A.18] by Representative Buch                                                               
changes  the  requirement  for   the  core  curriculum.  It  uses                                                               
essentially  the   same  language   as  that  in   the  committee                                                               
substitute, so  instead of four years  of math and four  years of                                                               
science, a student could take three  years of each plus two years                                                               
of a foreign language. - Adopted                                                                                                
                                                                                                                                
8:27:52 AM                                                                                                                    
-  House  Amendment  12 (N)  [26-GH2771\A.11]  by  Representative                                                               
Edgemon replaces Conceptual Amendment 7  (I). It adds the goal of                                                               
increasing  participation  of  Alaska  high  school  students  in                                                               
Alaska postsecondary institutions. - Adopted                                                                                    
                                                                                                                                
8:28:46 AM                                                                                                                    
MR. RICHMOND pointed out that the  next amendment is the one that                                                               
replaces Conceptual Amendment 4 (F), which was pulled.                                                                          
                                                                                                                                
- House Amendment 13 (O)  [26-GH2771\A.21] contains language that                                                               
expands  the definition  of curriculum  by  inserting the  phrase                                                               
"which may include virtual curriculum."                                                                                         
                                                                                                                                
8:30:52 AM                                                                                                                    
He said Senator Steven's aide will present amendments A and B.                                                                  
                                                                                                                                
8:31:53 AM                                                                                                                    
TIM LAMKIN, staff  to Senator Stevens, said  these amendments are                                                               
based  on  CSSB  224,  Draft  Version E,  which  was  before  the                                                               
committee last week.                                                                                                            
                                                                                                                                
- Amendment  A [26-GS2771\E.2] is  a housekeeping  amendment that                                                               
removes  the   goals  of  the   program,  which   really  address                                                               
legislative intent  and do not  belong in statute.  This proposes                                                               
to draw  them out  of the  bill and paste  them into  a committee                                                               
letter of  intent, so the goals  and purposes will still  be part                                                               
of the record and  will follow the bill, but will  not be part of                                                               
statute.                                                                                                                        
                                                                                                                                
Amendment  B   [26-GS2771\E.1]  specifically   addresses  Senator                                                               
Stevens'   concerns  regarding   non-traditional  students.   The                                                               
substance of this amendment is at  the bottom of page 9, where it                                                               
adds  a new  subsection  (c) that  states  "the department  shall                                                               
adopt  regulations to  include an  application procedure  for the                                                               
award of  a scholarship  or for the  resumption of  a scholarship                                                               
award for an eligible applicant  who has either withdrawn from or                                                               
delayed enrollment  in a  qualified postsecondary  institution in                                                               
the state and who has  been admitted to a qualified postsecondary                                                               
institution, regardless of age."                                                                                                
                                                                                                                                
He  summarized that  this basically  allows a  student who  comes                                                               
into the system, starts college,  and leaves in good standing for                                                               
whatever reason, to  return in good standing and  be eligible for                                                               
the scholarship. It  also strikes references to  the six-year cap                                                               
for consistency,  and increases the  number of semesters  on page                                                               
12, line 11, from 8 to 12.                                                                                                      
                                                                                                                                
CO-CHAIR THOMAS restated that the  intent is to allow students to                                                               
start at  any time  or to take  time off and  start again  at any                                                               
time.                                                                                                                           
                                                                                                                                
MR.  LAMKIN  answered  that the  regulations  would,  he  trusts,                                                               
stipulate that there  have to be legitimate  reasons for leaving,                                                               
not just whimsical ones.                                                                                                        
                                                                                                                                
8:36:27 AM                                                                                                                    
CO-CHAIR  MEYER  asked if  this  would  apply  to a  student  who                                                               
qualified for the scholarship, left  school to raise a family and                                                               
then wanted to return 20 years later.                                                                                           
                                                                                                                                
MR.  LAMKIN  affirmed that,  if  the  student qualified  when  he                                                               
started college and left college  in good standing, he could come                                                               
back and still qualify for the scholarship.                                                                                     
                                                                                                                                
CO-CHAIR MEYER said  he would like to hear  from the commissioner                                                               
on that.                                                                                                                        
                                                                                                                                
8:37:30 AM                                                                                                                    
MR.  RICHMOND  wrapped  up  by  saying  that  all  of  the  House                                                               
amendments are offered to the  governor's original bill, but none                                                               
of the changes that were made in  the CS would be affected by any                                                               
of these  amendments. Senator Stevens' amendments  are offered to                                                               
the CS, but  could apply to the original bill  with only location                                                               
changes.                                                                                                                        
                                                                                                                                
CO-CHAIR THOMAS asked  if the committee would like  to review the                                                               
amendments in greater depth.                                                                                                    
                                                                                                                                
SENATOR DAVIS said she only  wants to address the amendments that                                                               
were adopted on the House side.                                                                                                 
                                                                                                                                
8:40:47 AM                                                                                                                    
CO-CHAIR  MEYER  asked  Mr.  Richmond  if  there  is  a  proposed                                                               
amendment to change the SAT or  ACT requirement, or if he brought                                                               
it up only as a topic for discussion.                                                                                           
                                                                                                                                
MR. RICHMOND answered  that the governor's bill  requires the ACT                                                               
or SAT,  although those tests  are not spelled out  directly. One                                                               
of  the documents  the  committee received  spelled  them out  in                                                               
fairly  specific  terms,  which  alarmed  some  people,  but  the                                                               
administration affirmed  that they  are not meant  to be  part of                                                               
the regulations.  The CS  did not contain  a requirement  for the                                                               
ACT or  the SAT,  nor did the  governor's bill  explicitly assign                                                               
that. The  questions before the  committee are whether  they want                                                               
that requirement in  the bill and if so, do  they want to include                                                               
a  minimum qualifying  score  or perhaps  create  tiers based  on                                                               
different scores.                                                                                                               
                                                                                                                                
CO-CHAIR  MEYER commented  that if  they  are going  back to  the                                                               
governor's bill,  he may want  to add  an amendment. He  thinks a                                                               
test  like the  ACT  or  SAT should  be  required,  but does  not                                                               
believe  an  average  score  should   be  necessary  to  get  the                                                               
scholarship.                                                                                                                    
                                                                                                                                
8:43:54 AM                                                                                                                    
SENATOR DAVIS said  she agrees that students should  have to take                                                               
either  the ACT  or the  SAT; students  have to  take one  or the                                                               
other and obtain a minimum score  in order to be accepted at most                                                               
universities. She asked if the  governor's original bill requires                                                               
students to  take the  ACT only,  or if  it simply  requires some                                                               
form of testing.                                                                                                                
                                                                                                                                
8:44:57 AM                                                                                                                    
LARRY  LEDOUX, Commissioner,  Department of  Education and  Early                                                               
Development (DEED), Juneau, Alaska,  answered that the governor's                                                               
bill asks  that there be  a standardized assessment,  which would                                                               
probably  mean  either the  ACT  or  the  SAT.  He thinks  it  is                                                               
necessary that they  validate both the rigor of  the courses they                                                               
require  and  the  grades  they   are  asking  teachers  to  give                                                               
students; a standardized  test will do that. He  said he believes                                                               
many scholarship  programs actually  have tiered levels  based on                                                               
performance on the  test; his view is that they  have the highest                                                               
score  to validate  the intent  of the  legislation, which  is to                                                               
prepare kids to  engage in college. If the required  score is too                                                               
low, it is meaningless; if it's  too high, then it has a negative                                                               
effect. It is  also important to note that kids  can begin taking                                                               
the  test in  their  junior year  and  can take  it  all the  way                                                               
through high school; there is  some research to indicate students                                                               
can improve their score when they take it again.                                                                                
                                                                                                                                
8:46:46 AM                                                                                                                    
CO-CHAIR MEYER asked if it is  the governor's intent to mandate a                                                               
minimum qualifying score in the bill.                                                                                           
                                                                                                                                
MR.  LEDOUX  said if  there  is  no  benchmark students  have  to                                                               
achieve, there is no reason to  take the test. He emphasized that                                                               
he does  not want  the test alone  to determine  the scholarship,                                                               
but it is part of the  interchange of a rigorous curriculum, GPI,                                                               
and validation.                                                                                                                 
                                                                                                                                
SENATOR DAVIS  asked if she  is correct, that  the administration                                                               
does not prefer the ACT or  the SAT and that, although there must                                                               
be  a cut  score, students  do not  have to  achieve the  highest                                                               
level to qualify.  She also asked if the committee  staff can get                                                               
her information  on the highest  possible and average  scores for                                                               
both of those tests.                                                                                                            
                                                                                                                                
8:50:08 AM                                                                                                                    
COMMISSIONER  LEDOUX   said  the  department  has   all  of  that                                                               
information available, including  cross-correlation. He cautioned                                                               
that  they  need to  be  very  careful about  including  specific                                                               
numbers in  statute because the  numbers may change as  the tests                                                               
are  redesigned.  Currently, the  law  says  the state  Board  of                                                               
Education will set those scores.                                                                                                
                                                                                                                                
SENATOR DAVIS  asked if he  is saying  they should not  specify a                                                               
base score.                                                                                                                     
                                                                                                                                
COMMISSIONER LEDOUX corrected that there  should be a minimum SAT                                                               
score and  a correlated minimum  ACT score for  qualification for                                                               
the scholarship.                                                                                                                
                                                                                                                                
CO-CHAIR MEYER  asserted that  it is  important to  maintain some                                                               
flexibility so they  don't have to change the  statute every time                                                               
the  test  changes.  He  then  asked  for  Commissioner  LeDoux's                                                               
comments on House Amendment 9 (K) dealing with errors.                                                                          
                                                                                                                                
8:52:29 AM                                                                                                                    
COMMISSIONER  LEDOUX  requested  that Diane  Barrans  respond  to                                                               
that.                                                                                                                           
                                                                                                                                
SENATOR  DAVIS asked  which  of the  national  tests most  Alaska                                                               
school districts use, ACT or SAT.                                                                                               
                                                                                                                                
COMMISSIONER LEDOUX again deferred to Diane Barrans.                                                                            
                                                                                                                                
8:53:33 AM                                                                                                                    
CO-CHAIR  THOMAS  told  Commissioner LeDoux  that  the  committee                                                               
would like him  to come back and talk with  them again after they                                                               
have  all had  an opportunity  to review  the amendments  and the                                                               
written answers he provided to  the questions they raised at last                                                               
week's meeting.                                                                                                                 
                                                                                                                                
CO-CHAIR  MEYER  asked  Commissioner  LeDoux to  comment  on  the                                                               
amendment  by Senator  Stevens,  which allows  students to  start                                                               
college at any time.                                                                                                            
                                                                                                                                
COMMISSIONER  LEDOUX responded  that the  administration's intent                                                               
is to have students graduate  from high school and start college.                                                               
Research seems to indicate that  if they do not concentrate their                                                               
education at  the postsecondary level,  they are  not successful.                                                               
There  are  a  couple  of   other  concerns  about  extending  it                                                               
indefinitely;  it extends  liability  on the  funding source  for                                                               
scholarships, and it does not  encourage students to get busy and                                                               
get their degree.                                                                                                               
                                                                                                                                
COMMISSIONER LEDOUX  continued; the bill as  written does provide                                                               
a certain amount of flexibility  for parents who want their young                                                               
people to leave the state for a  year or two, or for students who                                                               
want to  pick up a bachelor's  degree down south and  then return                                                               
to  Alaska and  use the  last two  years of  the scholarship  for                                                               
graduate or professional school. It  does not penalize a break in                                                               
service, as  do many  scholarship programs.  He pointed  out that                                                               
the part of  Senator Stevens' amendment that  allows 12 semesters                                                               
instead of  8 would increase  the cost  of the scholarship  by 50                                                               
percent, or over $10 million per year.                                                                                          
                                                                                                                                
8:56:12 AM                                                                                                                    
SENATOR DAVIS  said the committee  has already changed  the focus                                                               
of the  legislation somewhat because  they have decided to  add a                                                               
needs-based component  that was  not part  of the  original bill.                                                               
She  asked if  the administration  would prefer  that they  add a                                                               
separate  non-traditional  component  instead  of  modifying  the                                                               
existing requirements for students coming out of high school.                                                                   
                                                                                                                                
8:57:08 AM                                                                                                                    
COMMISSIONER LEDOUX said the House  requested information about a                                                               
GED pathway to the scholarship for  kids who do not graduate from                                                               
high  school, and  he  would be  happy to  provide  that to  this                                                               
committee.  Some  scholarship  programs  provide  an  alternative                                                               
pathway  for non-traditional  students, meaning  students who  do                                                               
not graduate  from high school in  four years; this one  does not                                                               
contain such an alternative pathway.                                                                                            
                                                                                                                                
SENATOR  DAVIS said  she  would  like to  look  at  it from  that                                                               
standpoint, but  she is not thinking  of non-traditional students                                                               
as  those who  don't  finish  high school;  she  is referring  to                                                               
students who have  made it back to college and  are struggling to                                                               
get through. Many students keep  extending their time to graduate                                                               
because they  have to  work and  can't get  the hours  they need.                                                               
This  scholarship might  make it  possible  for them  to stay  in                                                               
school and focus on their studies.                                                                                              
                                                                                                                                
8:58:39 AM                                                                                                                    
COMMISSIONER LEDOUX said  he will try to  provide the information                                                               
requested,  but  pointed  out that  the  non-traditional  student                                                               
Senator Davis is talking about does  not align with the intent of                                                               
this program, which is to encourage  young people to work hard in                                                               
school and take a rigorous  curriculum to be successful. What she                                                               
is describing, he  asserted, is a needs-based  program, and there                                                               
are  existing  programs  available  to help  that  kind  of  non-                                                               
traditional student.                                                                                                            
                                                                                                                                
SENATOR  DAVIS disagreed.  She  said  she is  aware  of only  one                                                               
federal  program, and  very little  of  that money  is coming  to                                                               
Alaska.  She said  she does  not see  the committee  passing this                                                               
bill out without taking these students into consideration.                                                                      
                                                                                                                                
8:59:54 AM                                                                                                                    
COMMISSIONER LEDOUX  reiterated that he  will try to  provide the                                                               
committee with information on that kind of scholarship program.                                                                 
                                                                                                                                
CO-CHAIR  MEYER asked  if the  administration agrees  with making                                                               
the award for  the vocational and technical  scholarship the same                                                               
as for the academic scholarship.                                                                                                
                                                                                                                                
COMMISSIONER LEDOUX  responded that one of  the amendments passed                                                               
by  the  House  would  allow  a student  who  earns  an  academic                                                               
scholarship  to  choose  to  use  it at  a  career  or  technical                                                               
education  school. He  added that  90 percent  of the  career and                                                               
technical  education programs  are offered  by the  University of                                                               
Alaska, so  students can already  use whatever they  earn through                                                               
the  academic scholarship  for those  programs. The  highest-cost                                                               
program offered by Alaska Vocational  Technical Center (AVTEC) is                                                               
the nursing program at $5000, and  most are about $3000; very few                                                               
of  their programs  are longer  than  two years.  Where the  cost                                                               
increases at AVTEC  is in other expenses; the  tools required for                                                               
the  diesel  mechanic  program,   for  example,  cost  more  than                                                               
tuition.  The needs-based  amendment approved  by the  other body                                                               
would provide for room and board and other expenses.                                                                            
                                                                                                                                
He  explained that  the administration  does  not want  to set  a                                                               
"gold standard" that vocational  and technical programs will tack                                                               
their rates to, thereby artificially  inflating the cost of those                                                               
programs. In  addition, it hopes  the opportunity  represented by                                                               
the  scholarship   will  spur  development  of   new  career  and                                                               
technical programs.                                                                                                             
                                                                                                                                
9:02:32 AM                                                                                                                    
SENATOR  DAVIS  noted  that the  current  bill  excludes  seniors                                                               
graduating in  2010; she wants  them to be included,  even though                                                               
the funding won't be available until 2011.                                                                                      
                                                                                                                                
COMMISSIONER  LEDOUX said  there is  no good  answer to  that. He                                                               
recently  spoke   to  students  from  Wrangle   High  School  and                                                               
suggested that those students apply  now and validate after their                                                               
first  year of  college. If  they take  a rigorous  curriculum in                                                               
science, math, language  arts, and social studies  in their first                                                               
year of  college and can  validate a  certain GPA, then  they can                                                               
qualify from that  time forward. He added that there  has to be a                                                               
starting point somewhere.                                                                                                       
                                                                                                                                
SENATOR DAVIS concurred, but said  these students have started to                                                               
prepare themselves based on the  fact that the governor announced                                                               
this scholarship in October.                                                                                                    
                                                                                                                                
COMMISSIONER LEDOUX said it will  be expensive if the legislature                                                               
decides to fund  that, because the state will not  be able to use                                                               
interest on the  account; the money will have to  come out of the                                                               
General Fund.                                                                                                                   
                                                                                                                                
SENATOR DAVIS  reiterated that she  understands funding  will not                                                               
kick in until the class of 2011.                                                                                                
                                                                                                                                
COMMISSIONER  LEDOUX said  the legislature  is going  to have  to                                                               
decide what they want to do.                                                                                                    
                                                                                                                                
9:05:36 AM                                                                                                                    
CO-CHAIR THOMAS asked  Ms. Barrans to speak to  the questions the                                                               
Commissioner was not able to answer.                                                                                            
                                                                                                                                
CO-CHAIR  MEYER  asked  Ms.  Barrans  to  comment  on  the  House                                                               
amendment  that absolves  students  of liability  for any  errors                                                               
made in funding  their scholarship awards. He said it  is a given                                                               
that administrative errors are corrected.                                                                                       
                                                                                                                                
9:06:21 AM                                                                                                                    
DIANE   BARRANS,  Executive   Director,   Alaska  Commission   on                                                               
Postsecondary Education,  Juneau, Alaska,  said she agrees;  if a                                                               
student is  unduly enriched through  some sort  of administrative                                                               
error, even  if it was  not malfeasance on  his part, there  is a                                                               
general  expectation in  financial  aid  administration that  the                                                               
student will refund that to the provider.                                                                                       
                                                                                                                                
She continued; the members of the  other body asked her to gather                                                               
additional  information from  financial aid  professionals as  to                                                               
what situations might  lead to overpayment besides  an error. One                                                               
such situation  is late-arriving  aid from another  source, which                                                               
could result in a student being  over-awarded so that he has more                                                               
money  than the  cost of  attendance. In  that case,  the student                                                               
would be  expected to refund one  of the other payers.  It is her                                                               
recommendation that they  do not put that sort  of general waiver                                                               
in place.                                                                                                                       
                                                                                                                                
9:08:26 AM                                                                                                                    
SENATOR DAVIS asked  Ms. Barrans to tell the  committee about the                                                               
scholarship that is available to non-traditional students.                                                                      
                                                                                                                                
MS.  BARRANS  explained  that the  Alaska  Advantage  Needs-Based                                                               
Grant   is   the   federal  Leveraging   Educational   Assistance                                                               
Partnership (LEAP) grant that the  legislature authorized in FY01                                                               
and  is a  successor  program to  the  State Education  Incentive                                                               
Grant (SEIG).  That program has  actually been zeroed out  of the                                                               
President's budget for  next year, but it has been  zeroed out of                                                               
every  president's budget  for the  last  20 years  and is  still                                                               
around, so  it may continue  to be  funded. The way  that program                                                               
works is that states have to  put in a matching amount of dollars                                                               
in order  to get  the federal dollars.  Alaska has  been matching                                                               
using Alaska  Student Loan  Corporation Receipts  and unobligated                                                               
interest  on a  fund. Those  funds  will no  longer be  available                                                               
because of the  corporation's need to conserve  its resources for                                                               
its own  purposes. In FY09  the legislature  appropriated general                                                               
funds in  the capital  budget to put  additional monies  into the                                                               
program,  but there  is no  base built  into the  state operating                                                               
budget to  fund that  program. It is  strictly needs-based;  as a                                                               
result,  almost all  of the  students who  receive the  grant are                                                               
independent students. The  average age has ranged  between 28 and                                                               
31.                                                                                                                             
                                                                                                                                
SENATOR  DAVIS asked  how much  money was  put into  the fund  in                                                               
2009.                                                                                                                           
                                                                                                                                
9:10:46 AM                                                                                                                    
MS. BARRANS said she thinks it  was $3.2 million, which was doled                                                               
out over 3 years; the last year will be 2011.                                                                                   
                                                                                                                                
SENATOR DAVIS asked  who brought the request  for funding forward                                                               
last year.                                                                                                                      
                                                                                                                                
MS. BARRANS answered that it was Representative Gara.                                                                           
                                                                                                                                
SENATOR  DAVIS  wondered  if the  committee  could  include  that                                                               
funding in this bill.                                                                                                           
                                                                                                                                
9:12:13 AM                                                                                                                    
MS.  BARRANS  said she  is  not  sure  how  they would  do  that.                                                               
Responding  to Senator  Davis' question  regarding test  use, she                                                               
said only  the University of  Alaska Fairbanks uses a  test score                                                               
as a  required element, and  it uses the  ACT test. If  a student                                                               
does not take the ACT, he has  to take another test to assess his                                                               
academic ability in order to be accepted into a degree program.                                                                 
                                                                                                                                
SENATOR DAVIS asked what score UAF requires on that test.                                                                       
                                                                                                                                
MS.  BARRANS said  she is  not  sure, but  will get  back to  the                                                               
committee on that point.                                                                                                        
                                                                                                                                
9:13:24 AM                                                                                                                    
CO-CHAIR MEYER asked if UAF accepts either the ACT or the SAT.                                                                  
                                                                                                                                
MS.  BARRANS said  they do.  She added  that an  exam called  the                                                               
Accuplacer is  sometimes used; most  institutions use it  only to                                                               
place someone at the right entry level of a course.                                                                             
                                                                                                                                
9:14:06 AM                                                                                                                    
SENATOR DAVIS  asked if Ms. Barrans  can expand a little  on what                                                               
is accepted most often by universities outside Alaska.                                                                          
                                                                                                                                
MS. BARRANS said  there are really statewide cultures,  so in one                                                               
state  it will  be broadly  the ACT,  and in  another it  will be                                                               
broadly the SAT. There is no single standard.                                                                                   
                                                                                                                                
9:14:42 AM                                                                                                                    
CO-CHAIR THOMAS asked  for her opinion on House  Amendment 3 (E),                                                               
which replaces  the words "university  or college in  this state"                                                               
with "postsecondary institution as described in AS 14.43.835."                                                                  
                                                                                                                                
MS. BARRANS said deletion of the  phrase "in this state" would be                                                               
problematic  if the  point  that  the institution  has  to be  in                                                               
Alaska were  not made  clear elsewhere  in statute.  However, she                                                               
believes the description  in AS 14.43.835, which  is elsewhere in                                                               
the bill, makes that clear.                                                                                                     
                                                                                                                                
9:16:16 AM                                                                                                                    
CO-CHAIR MEYER asked for Ms.  Barran's opinion about the issue of                                                               
non-traditional students;  he can  see that  it might  cause some                                                               
administrative concerns trying  to track kids and  then adults if                                                               
they wait for years to take advantage of this program.                                                                          
                                                                                                                                
9:16:53 AM                                                                                                                    
MS.   BARRANS  said   she  shares   the  concerns   expressed  by                                                               
Commissioner LeDoux. The other concern  that comes immediately to                                                               
mind,  both for  the  funds source  and  the individual  students                                                               
involved, is  that typically,  when students  defer participation                                                               
in   postsecondary  education,   they  incur   other  debts   and                                                               
responsibilities.  With a  needs-based  component,  the state  is                                                               
agreeing to  share those increased  costs. In other words,  a 30-                                                               
year-old going to school is  going to have a substantially higher                                                               
cost  of   attendance.  He  may  have   family-members  and  will                                                               
typically   live  off   campus.  In   calculating  the   cost  of                                                               
attendance,  the  financial  aid   folks  build  in  family  size                                                               
elements.  The   state,  under  this  bill   with  a  needs-based                                                               
component, is  agreeing to share  all of those  additional costs,                                                               
so  it is  very  difficult to  predict  the fiscal  implications.                                                               
Also, if  there is  a shortfall,  the bill  calls for  a pro-rata                                                               
distribution  of awards;  the  state could  have  a situation  in                                                               
which the  effect of the  pro-rata distribution makes  the awards                                                               
too small to be helpful to anyone.                                                                                              
                                                                                                                                
9:18:56 AM                                                                                                                    
SENATOR DAVIS asked  her to address the issue of  bringing on the                                                               
students graduating in 2010.                                                                                                    
                                                                                                                                
MS. BARRANS elaborated  on the point that  the Commissioner made.                                                               
As he indicated,  the department is very committed  to creating a                                                               
phased-in approach. What  it would mean financially,  is that the                                                               
group of students who would be  eligible in the first year of the                                                               
program   would  be   approximately  50   percent  greater   than                                                               
originally estimated.                                                                                                           
                                                                                                                                
SENATOR  DAVIS said  she doubts  that many  of the  2010 students                                                               
will qualify.                                                                                                                   
                                                                                                                                
9:20:50 AM                                                                                                                    
MS. BARRANS acknowledged that she  may be right; she used numbers                                                               
experienced by Wyoming to estimate  the number of students in the                                                               
class of 2011 who will qualify for the program.                                                                                 
                                                                                                                                
SENATOR DAVIS asked what those numbers were.                                                                                    
                                                                                                                                
MS. BARRANS answered that the estimate  is than 30 percent of the                                                               
graduating class or about 2500 students.                                                                                        
                                                                                                                                
9:21:42 AM                                                                                                                    
MR. STEWART  explained that House  Amendment C was  introduced by                                                               
the governor  and adds  a needs-based  component to  his original                                                               
bill. After a $2000 deductable, this  allows the state to pick up                                                               
50  percent of  the  student's outstanding  need, the  difference                                                               
between tuition and what hasn't  been covered by scholarships and                                                               
grants.                                                                                                                         
                                                                                                                                
SENATOR DAVIS said she would  like to see a side-by-side analysis                                                               
of the  original bill with  the governor's amendment and  what is                                                               
in their CS.                                                                                                                    
                                                                                                                                
9:24:06 AM                                                                                                                    
MR. RICHMOND  said the  CS has three  levels of  scholarship. The                                                               
top  tier  is  a  performance scholarship  very  similar  to  the                                                               
governor's plan.  It is  for A  students who  have taken  a tough                                                               
curriculum  and are  being rewarded  for their  academic prowess.                                                               
The next  tier is  similar to  the Taylor  plan for  students who                                                               
can't  afford  to  go  to  school;  it  requires  them  to  prove                                                               
themselves by taking  specific courses and getting at  least a C+                                                               
level, but the  award is based primarily on their  need. Based on                                                               
the CS, it is conceivable that  a needs-based student could get a                                                               
higher monetary award  than a merit scholar because  of his need.                                                               
The third tier is the for career students.                                                                                      
                                                                                                                                
CO-CHAIR THOMAS interjected that the  committee staff will try to                                                               
work  up  another comparison  chart  that  illustrates the  major                                                               
differences between the two.                                                                                                    
                                                                                                                                
MR. RICHMOND  said, in  terms of  what students  will get  in the                                                               
end,  the figures  in the  governor's bill  and the  CS are  very                                                               
similar.                                                                                                                        
                                                                                                                                
9:28:08 AM                                                                                                                    
MR. STEWART  pointed out that in  both the CS and  the governor's                                                               
bill with  the needs-based amendment, the  possibility exists for                                                               
the needs-based component to balloon  well beyond the merit-based                                                               
component. There is downward pressure  on the merit award in both                                                               
bills  because it  is pegged  to tuition  rates at  in a  certain                                                               
year,  but  the  needs-based  component  has  no  cap  in  either                                                               
version,  and  that  is  something  the  committee  may  want  to                                                               
consider.                                                                                                                       
                                                                                                                                
9:29:20 AM                                                                                                                    
MR.  RICHMOND continued;  the C  students are  the ones  who will                                                               
benefit most from either version of the bill.                                                                                   
                                                                                                                                
He said that  House Amendment J inserts language  for the purpose                                                               
of ensuring that  a rigorous academic curriculum  is available in                                                               
all schools in the state. The  hope of the administration is that                                                               
this  will reform  the high  schools and  get them  to offer  the                                                               
rigorous curriculum students need.                                                                                              
                                                                                                                                
SENATOR DAVIS said she likes that  amendment and wants to be sure                                                               
the language is included in whatever version they go with.                                                                      
                                                                                                                                
CO-CHAIR  MEYER reiterated  that  he  is not  in  favor of  House                                                               
Amendment K.                                                                                                                    
                                                                                                                                
9:31:24 AM                                                                                                                    
MR.  RICHMOND said  Amendment L  allows a  student to  attend any                                                               
certified postsecondary school on this scholarship.                                                                             
                                                                                                                                
9:32:15 AM                                                                                                                    
House Amendment  N increases participation of  Alaska high school                                                               
students in Alaska postsecondary  education institutions. That is                                                               
not currently stated explicitly as a goal of the program.                                                                       
                                                                                                                                
House  Amendment  O  raises  the   idea  of  virtual  curriculum,                                                               
especially in schools that are not close to major urban areas.                                                                  
                                                                                                                                
MR. STEWART  said the caveat on  amendment N is that,  in Senator                                                               
Stevens' amendment  all of the  intent language is pulled  out of                                                               
the statute  itself. The  information in N  would be  included in                                                               
the intent letter accompanying the bill.                                                                                        
                                                                                                                                
CO-CHAIR THOMAS said, if there  are no objections, they will have                                                               
a new CS drawn  up this week and get it  to the committee members                                                               
for review prior to taking up SB 224 at the next meeting.                                                                       
                                                                                                                                
9:35:02 AM                                                                                                                    
There being no further business to come before the committee,                                                                   
Co-Chair Thomas adjourned the meeting at 9:35 a.m.                                                                              

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