Legislature(2011 - 2012)BELTZ 105 (TSBldg)

02/04/2011 08:00 AM Senate EDUCATION


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08:03:12 AM Start
08:04:12 AM SB43
08:58:11 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 43 ALASKA PERFORMANCE SCHOLARSHIPS TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
             SB  43-ALASKA PERFORMANCE SCHOLARSHIPS                                                                         
                                                                                                                                
8:06:34 AM                                                                                                                    
CO-CHAIR  MEYER   announced  the  consideration  of   SB  43.  He                                                               
explained that  Jomo Stewart, a  former co-committee aide  to the                                                               
Senate Education  Standing Committee  and committee aide  for the                                                               
Joint  Legislative  Higher  Education  Scholarship  Funding  Task                                                               
Force, would give a presentation  on the recommendations produced                                                               
by the  task force. The goal,  he said, is to  discuss amendments                                                               
that will integrate some of these recommendations into SB 43.                                                                   
                                                                                                                                
8:08:08 AM                                                                                                                    
JOMO STEWART, Staff to Representative  Steve Thompson, began with                                                               
an overview of the task force  process. He said the first meeting                                                               
was an overview on the  background of the scholarship bill itself                                                               
[SB  221,  which passed  into  law  during the  26th  legislative                                                               
session]. Second,  the task force  looked at the  merit-based and                                                               
need-based components  of the scholarship. Next,  it examined the                                                               
means and  mechanisms of funding  the scholarship  program, which                                                               
was  the  task  force's  primary  task.  He  explained  that  the                                                               
information gathered was  used to look at  various proposals that                                                               
could  establish a  sustainable funding  mechanism. Finally,  the                                                               
task force developed a report  with recommendations for improving                                                               
the scholarship [included in the document packet].                                                                              
                                                                                                                                
MR.  STEWART  gave a  summary  of  the following  recommendations                                                               
[located on Executive Summary Page ii]:                                                                                         
                                                                                                                                
Funding and Finance                                                                                                           
   · The Legislature should immediately create a Scholarship                                                                    
     Fund for the Scholarship program.                                                                                          
   · If possible, the Scholarship Fund should be immediately                                                                    
     capitalized to the point where it can be both self-                                                                        
     sufficient and self-sustaining.                                                                                            
   · Otherwise, enough money should be deposited into the                                                                       
     account to act as a "surety account" for future generations                                                                
     and cohorts of students.                                                                                                   
                                                                                                                                
Merit-Based Component                                                                                                         
Curriculum:                                                                                                                     
   · No immediate amendment should be made to the Scholarship                                                                   
     curriculum until  its yearly reporting  can provide  data to                                                               
     serve  as  a  factual   basis  for  such  alterations.  This                                                               
     includes the  allowance of a dual  curricular system, rather                                                               
     than a  unified curriculum for  students to qualify  for the                                                               
     scholarship.                                                                                                               
   · The Department of Education and Early Development (DEED)                                                                   
     should  specify  the  "required  courses"  not  specifically                                                               
     delineated in  statute for each curricular  subject area and                                                               
     define  the content  requirements  and  standards for  those                                                               
     courses.                                                                                                                   
                                                                                                                                
8:16:09 AM                                                                                                                    
SENATOR  FRENCH  said that  it  is  his understanding  that  many                                                               
school districts in  rural areas are concerned  that its students                                                               
will be unable to qualify  for the scholarship because they can't                                                               
meet the curriculum  requirements. He asked what  impact this may                                                               
have in rural Alaska.                                                                                                           
                                                                                                                                
MR.  STEWART replied  that SB  221 made  some accommodations  for                                                               
this issue. He explained that the  first cohort of students to be                                                               
eligible for the scholarship is  this year's students who may not                                                               
have taken all the components of the required curriculum.                                                                       
                                                                                                                                
SENATOR FRENCH asked whether "this  year's students" implies this                                                               
year's freshmen or seniors.                                                                                                     
                                                                                                                                
MR.   STEWART  replied   this  year's   graduating  seniors.   He                                                               
reiterated that these  students will not have had  the benefit of                                                               
four years knowledge of the  required curriculum. SB 221 included                                                               
transition language that helps accommodate this reality.                                                                        
                                                                                                                                
He continued  that with regard  to rural Alaska,  the legislature                                                               
was told,  last year,  that every  school in  the state  would be                                                               
able to  provide the  required curriculum.  However, anecdotally,                                                               
this   may  not   be  the   case  and   was  recognized   by  the                                                               
administration,  the legislature,  and the  task force.  The task                                                               
force  included the  following  recommendation  under the  merit-                                                               
based component to address this concern:                                                                                        
                                                                                                                                
Distance Delivery:                                                                                                              
   · The legislature should do an assessment of the State's                                                                     
     existing  distance  delivery  capacity  and,  should  it  be                                                               
     necessary,  develop a  plan (including  cost estimates)  for                                                               
     upgrading  DEED's capacity  to  provide  virtual program  or                                                               
     distance-delivered secondary courses.                                                                                      
                                                                                                                                
He  said  it is  up  to  the  committee  to decide  whether  this                                                               
accommodation is sufficient.                                                                                                    
                                                                                                                                
SENATOR  FRENCH said  he  would  like to  hear  from the  state's                                                               
school  districts on  whether  it  will be  able  to provide  the                                                               
required curriculum. He  asked if a time frame was  placed on the                                                               
assessment.                                                                                                                     
                                                                                                                                
MR. STEWART answered that it  was a general recommendation within                                                               
the report and was not time specific.                                                                                           
                                                                                                                                
8:19:50 AM                                                                                                                    
SENATOR   STEVENS  concurred   with  Senator   French.  He   said                                                               
establishing a virtual program is  not enough, there will need to                                                               
be individuals to help students use these virtual tools as well.                                                                
                                                                                                                                
CO-CHAIR MEYER agreed.  He said that the  administration needs to                                                               
address this issue.                                                                                                             
                                                                                                                                
SENATOR  DAVIS  said  that the  previous  commissioner  and  DEED                                                               
stated that it will provide what  is needed for rural students to                                                               
be  eligible for  qualification.  She said  the new  commissioner                                                               
needs to  review this  and inform the  committee of  what actions                                                               
will be taken to meet these needs.                                                                                              
                                                                                                                                
MR. STEWART  added that  the scholarship  program is  supposed to                                                               
act  as   "bottom  up  driver"   for  transforming   the  state's                                                               
educational  system, so  that every  student has  access to  this                                                               
curriculum.                                                                                                                     
                                                                                                                                
He continued  that, while last  year's original  scholarship bill                                                               
did not  include a needs-based  component, the version  that came                                                               
out of  the House and  Senate Education Standing  Committees last                                                               
year  did.  This component,  however,  was  not included  in  the                                                               
structural  frame work  of SB  221.  He explained  that the  task                                                               
force  gave  consideration to  a  needs-based  component and  the                                                               
different   mechanism  to   provide  funding.   The  task   force                                                               
recommended two kinds of needs-based assistance.                                                                                
                                                                                                                                
Needs-Based Component                                                                                                         
   · To directly support scholarship awardees, a capped needs-                                                                  
     based   supplement   should   be   reintegrated   into   the                                                               
     scholarship.                                                                                                               
   · To assist nontraditional students, however, the legislature                                                                
     should continue its support of the AlaskaAdvantage grant                                                                   
     program but do so at a higher than historic levels.                                                                        
                                                                                                                                
8:25:39 AM                                                                                                                    
SENATOR STEVENS commented  that it was interesting  that both the                                                               
House and  Senate Education Committees  insisted that there  be a                                                               
needs-based  component,  despite  the "expert  advice  they  were                                                               
receiving."  He asked  Mr. Stewart  whether students  who qualify                                                               
for needs-based funding would be accommodated through the merit-                                                                
based form of the scholarship.                                                                                                  
                                                                                                                                
CO-CHAIR MEYER clarified  that the task force  looked for several                                                               
alternatives for the needs-based  program and the AlaskaAdvantage                                                               
program seemed  to be a good  source. He explained that  the hope                                                               
was  to  keep the  merit-  and  needs-based components  separate,                                                               
while continuing to tie them together as well.                                                                                  
                                                                                                                                
SENATOR STEVENS  reiterated that he  thinks it is  important that                                                               
the House and Senate came to the same conclusion separately.                                                                    
                                                                                                                                
MR. STEWART  said under that  original needs-based  construct the                                                               
actual  cost  to  the  state could  have  been  substantial.  The                                                               
original scholarship proposal was about  $20 million per year and                                                               
with the addition of the  needs-based program the cost would have                                                               
doubled.                                                                                                                        
                                                                                                                                
He  explained that  the recommendation  from the  task force  was                                                               
that the  needs-based component should  be capped at  some level;                                                               
otherwise  the needs-based  component could  "dwarf the  value of                                                               
the scholarship" over time.                                                                                                     
                                                                                                                                
SENATOR FRENCH  asked what he meant  by "dwarf the value  of". He                                                               
said if a  merit-based scholarship is awarded  pro-rata, based on                                                               
the money  available to qualifying  students, there still  may be                                                               
an enormous financial  gap between the amount  of the scholarship                                                               
and the actual cost of going to college.                                                                                        
                                                                                                                                
MR. STEWART replied that the  task force ignored the phrase "pro-                                                               
rata." He  explained that the  merit-based scholarship  is pegged                                                               
at  the   2010  tuition  rate   at  UAF  [University   of  Alaska                                                               
Fairbanks].                                                                                                                     
                                                                                                                                
SENATOR FRENCH  asked what happens  if there is not  enough money                                                               
to fully  fund the students  who qualify for the  scholarship. He                                                               
recollected  that,  under  this circumstance,  the  award  amount                                                               
would be reduced pro rata per student.                                                                                          
                                                                                                                                
MR.  STEWART  answered "that  is  one  way  of keeping  costs  in                                                               
check."                                                                                                                         
                                                                                                                                
SENATOR FRENCH  said that  this is how  he understands  the funds                                                               
would be awarded.                                                                                                               
                                                                                                                                
CO-CHAIR  MEYER said  this is  a topic  that should  be discussed                                                               
with  Ms.  Barrans. He  explained  that  the program  the  Alaska                                                               
Commission on Postsecondary Education currently  uses is on a pro                                                               
rata basis.                                                                                                                     
                                                                                                                                
SENATOR  FRENCH explained  that he  is trying  to understand  the                                                               
mechanics of the scholarship.                                                                                                   
                                                                                                                                
8:34:13 AM                                                                                                                    
MR. STEWART continued with the tasks force's report summary:                                                                    
                                                                                                                                
Other Policy Recommendations                                                                                                  
   · Any institution which accepts Scholarship awards should                                                                    
     integrate an advisor/advocate program to assist scholarship                                                                
     awardees in expediting the students' time to education                                                                     
     program completion.                                                                                                        
   · Institutions accepting scholarship awardees should make                                                                    
     their best effort to provide course delivery structures                                                                    
     that allow for two and/or four year certificate/degree                                                                     
     completion timeliness.                                                                                                     
                                                                                                                                
CO-CHAIR MEYER  asked him to  address how this  scholarship would                                                               
apply to two-year schools.                                                                                                      
                                                                                                                                
MR.  STEWART  answered  that  the  scholarship  is  available  to                                                               
students on  both the academic and  VOTECH [vocational-technical]                                                               
track. He  said he  believes the  awards are  structured slightly                                                               
differently.                                                                                                                    
                                                                                                                                
In  summary  he  read  the  end of  the  task  force's  executive                                                               
summary:                                                                                                                        
                                                                                                                                
     Implementation of these  recommendations is expected to                                                                    
     provide the structure necessary  for the Scholarship to                                                                    
     meet  its two  great  promises: Its  promise to  Alaska                                                                    
     that  it  can  raise student  academic  performance  by                                                                    
     raising  expectations,  and  its  promise  to  students                                                                    
     that,   if  they   challenge  themselves   and  achieve                                                                    
     academic  success under  a highly  rigorous curriculum,                                                                    
     the State will reward them with a Scholarship.                                                                             
                                                                                                                                
He  informed the  committee that  Representative Seaton  has come                                                               
forward  with  a  work-draft  bill   to  try  and  integrate  the                                                               
recommendations in the task force report.                                                                                       
                                                                                                                                
CO-CHAIR MEYER  said the committee  will discuss  some amendments                                                               
[to  SB 43]  on  Monday, with  the hopes  of  having a  committee                                                               
substitute  by  Friday.  He  said  he  intends  to  close  public                                                               
testimony after Monday's meeting.                                                                                               
                                                                                                                                
He asked  Ms. Barrans  to address  the needs-based  component and                                                               
rural school concerns.                                                                                                          
                                                                                                                                
CO-CHAIR  THOMAS concurred,  the availability  of the  curriculum                                                               
components in  rural schools and  the funding of  the scholarship                                                               
are two primary concerns.                                                                                                       
                                                                                                                                
SENATOR  STEVENS said  he had  two  concerns. The  first was  the                                                               
confusion   of  including   both  the   merit-  and   needs-based                                                               
components  into one  bill. The  second was  trying to  develop a                                                               
funding structure which addresses both components.                                                                              
                                                                                                                                
8:42:04 AM                                                                                                                    
DIANE  BARRANS, Executive  Director,  Alaska  Commission on  Post                                                               
Secondary  Education (ACPE),  Department of  Education and  Early                                                               
Development (DEED),  said attachment 8  of the task  force report                                                               
is  the   presentation  made  by   the  commission   [located  on                                                               
Attachments  Page  18 of  the  report].  She explained  that  the                                                               
existing  grant  program   [AlaskAdvantage  Education  Grant]  is                                                               
administered  through the  Free Application  for Federal  Student                                                               
Aid (FAFSA)  and any  students filing and  attending a  school in                                                               
Alaska  are in  the  pool. Eligible  students  must be  half-time                                                               
enrolled in a  title IV program. She said this  is different than                                                               
the  Alaska  Performance  Scholarship   (APS)  which  includes  a                                                               
broader scope of institutions.                                                                                                  
                                                                                                                                
She continued that  the commission ranks and funds  grants to the                                                               
pool of eligible  students on a needs-based  basis. She explained                                                               
that there  is attrition with  this program because the  aid from                                                               
the  grant  is  awarded  after a  student's  decision  to  attend                                                               
school, which makes the aid unpredictable.                                                                                      
                                                                                                                                
With  regard to  the  curriculum components,  she  said that  the                                                               
department has  created both  a "phase-in  approach" and  a grace                                                               
year for the 2011 and 2012  graduates. The grace year would allow                                                               
students  an additional  year to  complete any  necessary classes                                                               
that they  have not been given  reasonable access to in  order to                                                               
be eligible for qualification.                                                                                                  
                                                                                                                                
8:49:09 AM                                                                                                                    
SENATOR FRENCH  turned to  page 16 of  the report  which included                                                               
the  current  [AlaskAdvantage] grant  amounts.  He  noted that  a                                                               
portion  of the  grant amounts  are based  on SAT/ACT  scores and                                                               
asked  if the  current program  could be  characterized as  being                                                               
somewhat merit-based.                                                                                                           
                                                                                                                                
MS. BARRANS replied  yes. She said that the base  grant is $1,500                                                               
per  year  and a  student  demonstrating  high academics  through                                                               
their  SAT/ACT  score  will  qualify for  the  maximum  grant  of                                                               
$3,000. She  explained that any  student who applies for  the APS                                                               
would   automatically   be  enrolled   in   the   pool  for   the                                                               
AlaskAdvantage  Education Grant  because  the FAFSA  is used  for                                                               
both programs.                                                                                                                  
                                                                                                                                
SENATOR FRENCH asked whether, in  the presence of a strong merit-                                                               
based  scholarship program,  it is  important to  continue giving                                                               
extra  points to  strong merit-based  students for  a grant  that                                                               
will become  a needs-based  pool of money.  He explained  that it                                                               
seems  this  might undercut  the  needs-based  student to  access                                                               
funds.                                                                                                                          
                                                                                                                                
MS.  BARRANS replied  that  she  agrees with  him  to an  extent.                                                               
However, she  said she  believes the way  the two  components are                                                               
currently structured complement each  other. For this reason, she                                                               
explained,  an  extra  needs-based  program  in  the  scholarship                                                               
program is not necessarily needed.                                                                                              
                                                                                                                                
SENATOR FRENCH asked, given  the merit-based scholarship program,                                                               
whether the AlaskAdvantage Education  Grant should be adjusted to                                                               
reduce the advantage to strong academic performers.                                                                             
                                                                                                                                
MS. BARRANS answered no.                                                                                                        
                                                                                                                                
CO-CHAIR MEYER asked if ACPE prioritizes certain majors.                                                                        
                                                                                                                                
MS.  BARRANS  replied  that   students  in  identified  workforce                                                               
shortage programs also qualify for the maximum grant.                                                                           
                                                                                                                                
CO-CHAIR MEYER said he appreciates  that SAT/ACT scores are taken                                                               
into  consideration  before  a needs-based  grant  is  given.  He                                                               
explained that he has two  concerns about the needs-based grants.                                                               
First,   many  students   are  not   prepared  for   college  and                                                               
administering grants  on a strictly needs-based  basis sets these                                                               
students  up  for  failure. Second,  the  commission  needs  $8.5                                                               
million to fully  fund the grant program and he  is concerned the                                                               
finance  committees will  think  it  is too  much.  He asked  Ms.                                                               
Barrans if there was a compromise that could be made.                                                                           
                                                                                                                                
MS. BARRANS  answered that $8.5  million is the amount  needed in                                                               
order  to increase  the base  grant  to $3,000  for all  eligible                                                               
students. If the commission continued  to administer the program,                                                               
as it  currently stands, then  $4.3 million is needed.  She noted                                                               
that  the grants  are  currently administered  in  order of  need                                                               
priority, whether the student qualifies  for the base or priority                                                               
grant amount.                                                                                                                   
                                                                                                                                
CO-CHAIR MEYER  announced he  would hold SB  43 in  committee and                                                               
kept public testimony open.                                                                                                     
                                                                                                                                
CO-CHAIR THOMAS  commented that there  are several  amendments to                                                               
discuss.                                                                                                                        

Document Name Date/Time Subjects
Scholarship Funding Task Force Report Transmittal Letter.pdf SEDC 2/4/2011 8:00:00 AM
Scholarship Funding Task Force - Final Report.pdf SEDC 2/4/2011 8:00:00 AM