Legislature(2011 - 2012)CAPITOL 106

02/02/2011 08:00 AM House EDUCATION


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08:02:37 AM Start
08:02:37 AM Presentation(s): School Superintendent
08:27:03 AM Presentation(s): Higher Education Scholarship Funding Task Force
09:21:24 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: TELECONFERENCED
Higher Education Scholarship Funding Task Force
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
                        February 2, 2011                                                                                        
                           8:02 a.m.                                                                                            
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Alan Dick, Chair                                                                                                 
Representative Lance Pruitt, Vice Chair                                                                                         
Representative Eric Feige                                                                                                       
Representative Paul Seaton                                                                                                      
Representative Peggy Wilson                                                                                                     
Representative Scott Kawasaki                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Sharon Cissna                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S):  SCHOOL SUPERINTENDENT                                                                                         
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PRESENTATION(S):  HIGHER EDUCATION SCHOLARSHIP FUNDING TASK                                                                     
FORCE                                                                                                                           
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
KENNETH STEPHEN BURNLEY, PhD, Superintendent                                                                                    
Mat-Su Borough School District (MSBSD)                                                                                          
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Provided a presentation on the Mat-Su                                                                    
Borough School District (MSBSD).                                                                                                
                                                                                                                                
EDDY JEANS, Education Policy Coordinator                                                                                        
Office of the Commissioner                                                                                                      
Department of Education and Early Development (EED)                                                                             
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    Provided  a presentation  on  the  Higher                                                             
Education  Scholarship  Funding  Task  Force, on  behalf  of  the                                                               
Department of Education and Early Development (EED).                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:02:37 AM                                                                                                                    
                                                                                                                                
CHAIR  ALAN DICK  called the  House Education  Standing Committee                                                             
meeting to order at 8:02 a.m.   Present at the call to order were                                                               
Representatives  Dick,  Wilson,  Seaton,  Pruitt,  and  Kawasaki.                                                               
Representative Feige arrived while the meeting was in progress.                                                                 
                                                                                                                                
^PRESENTATION(S):  School Superintendent                                                                                        
            PRESENTATION(S):  School Superintendent                                                                         
                                                                                                                                
8:02:37 AM                                                                                                                    
                                                                                                                                
CHAIR DICK announced that the first  order of business would be a                                                               
presentation from  the superintendent  of schools for  the Mat-Su                                                               
Borough School District (MSBSD).                                                                                                
                                                                                                                                
8:03:51 AM                                                                                                                    
                                                                                                                                
KENNETH  STEPHEN  BURNLEY,  PhD, Superintendent,  Mat-Su  Borough                                                               
School  District  (MSBSD),  said  the  district  has  prioritized                                                               
educational  transformation  in  order to  ensure  that  students                                                               
exiting  high  school  have  gained a  mastery  of  the  required                                                               
subjects.  Focus  has been placed on  building success, providing                                                               
transparent   accountability,   creating  a   relevant   academic                                                               
structure,  and  producing  students  who  are  career,  college,                                                               
workforce, and military ready.   The Mat-Su is the second largest                                                               
district in  the state, located  35 north of  Anchorage, covering                                                               
25,000 square  miles, and comprised  of 44 schools.   Enrollments                                                               
range from  11-1,247, for  a district  total of  17,098 students.                                                               
Every day 8,000  of the students are transported  by buses, which                                                               
average  5,500 miles  per day.   Additionally,  special education                                                               
buses  transport  500 students  approximately  2,500  miles on  a                                                               
daily basis.   The district offers a  free/reduced lunch service,                                                               
which 39 percent of the students are eligible to receive.                                                                       
                                                                                                                                
8:07:32 AM                                                                                                                    
                                                                                                                                
DR. BURNLEY  said the school  board established a  strategic plan                                                               
comprised  of  a  clear  vision,   clear  mission,  and  beliefs,                                                               
supported by  a set of core  values and four definite  goals.  He                                                               
opined  that  the  system  works   well  because  of  the  annual                                                               
objectives,  which  are  assessed  on  a  quarterly  basis.    He                                                               
directed attention  to the slide  titled "Second  Quarter Summary                                                               
Data Through  December 15,  2010," as an  example of  a quarterly                                                               
assessment  and indicated  how it  provides tracking  towards the                                                               
annual  targets.   These summary  assessments are  posted on  the                                                               
internet  for public  access, along  with  the year-end  reports.                                                               
Dr.  Burnley indicated  that the  district has  20 elementary,  5                                                               
middle, and  6 high schools.   In addition 6 charter  schools are                                                               
located in  the district.   He  said the  district holds  an open                                                               
enrollment policy, allowing parents  a choice of the programmatic                                                               
options offered.   Attention was  drawn to the pie  chart handout                                                               
to indicate  the ethnicity percentages,  and he pointed  out that                                                               
Caucasian students  represent the majority of  students, with the                                                               
largest minority being [Alaska Native].                                                                                         
                                                                                                                                
8:09:07 AM                                                                                                                    
                                                                                                                                
DR. BURNLEY moved to the most  important aspect of change that is                                                               
being implemented in the district;  the slide titled "Educational                                                               
Transformation and  Innovation-Stepping Into the  Future, Mastery                                                               
versus Time."   He explained  that a student must  demonstrate 80                                                               
percent mastery  of a subject  prior to advancement.   The system                                                               
allows   students  who   demonstrate  scholastic   competency  to                                                               
complete high  school in  three years, while  others may  find it                                                               
necessary  to continue  studies for  four  and one  half or  five                                                               
years.  The district policy  of mastery/advancement begins in the                                                               
pre-school years  and continues through  all levels.   The intent                                                               
is  to  hold  a  student  accountable  for  learning,  with  some                                                               
exceptions made for  special education students.   To support the                                                               
students  efforts  towards  these  goals,  several  programs  are                                                               
implemented.    The Key  Elements  in  Mathematic Success  (KEMS)                                                               
introduces  the  algebraic  concepts  through  a  coaching  model                                                               
provided  in  the middle  school  to  prepare students  for  high                                                               
school level algebra.  If a  student has not received the benefit                                                               
of the  KEMS program, the  Elements of Algebra Success  (KEAS) is                                                               
available in the high school.   Additionally, he said the Science                                                               
Technology, Engineering,  and Mathematics (STEM)  initiative, and                                                               
Health   Academy  courses   are  options.     Grading   is  being                                                               
standardized across  the district  to ensure  achievement levels.                                                               
The  high   school  programs  are  underpinned   by  Response  to                                                               
Intervention  (RTI)  and  Positive Behavioral  Interventions  and                                                               
Supports (PBIS),  which provide learning and  behavioral guidance                                                               
and  standards.   Finally,  a  college  alignment program  is  in                                                               
place, including links to the  Alaska Vocational Technical Center                                                               
(AVTEC).                                                                                                                        
                                                                                                                                
8:17:00 AM                                                                                                                    
                                                                                                                                
DR.  BURNLEY  provided  a  slide  to  illustrate  an  AdvancePath                                                               
Academics classroom  makeover, contrasting the  classic classroom                                                               
model  and  the AdvancePath  office  style  layout.   AdvancePath                                                               
creates  a professional  atmosphere, where  students are  treated                                                               
like adults; punching  in and out, leaving their seat  at will as                                                               
necessary, and forming  focus groups.  In this  setting a student                                                               
completes  one course  at a  time, achieving  80 percent  mastery                                                               
before  moving to  the next  course.   In this  way, a  motivated                                                               
student could  complete two years  of class credits in  one year.                                                               
Thus far, he  said, this model has produced good  results, and he                                                               
provided two examples  of students who had failed  the exit exam,                                                               
or dropped  out; both  returned, entered  the program  and earned                                                               
diplomas.    Additionally,   administrators  have  pursued  other                                                               
students who have  dropped out and invited them  back to complete                                                               
a degree in  this environment, to great success.   AdvancePath is                                                               
a  new   program,  serving  250  students,   in  three  different                                                               
programs, and serves  as an example for classroom  of the future.                                                               
In closing he stated his belief  that the Mat-Su school system is                                                               
achieving what  EED, the legislature, and  the federal government                                                               
have  mandated:     educational  transformation  and  innovation,                                                               
mastery  as the  constant, transparent  accountability, relevance                                                               
to  student achievement  and performance,  substantial investment                                                               
into   professional  development,   academic  and   employability                                                               
skills,  and  an  outcome  of   career,  college,  workforce  and                                                               
military ready graduates.                                                                                                       
                                                                                                                                
REPRESENTATIVE  SEATON  asked  if the  AdvancePath  approach  was                                                               
adopted from a national model.                                                                                                  
                                                                                                                                
DR. BURNLEY said yes, it has  been successful in the lower forty-                                                               
eight states, and  offered that the Mat-Su program  could be used                                                               
as a  demonstrative program for the  state.  He agreed  to supply                                                               
background   information  on   AdvancePath   to  the   committee.                                                               
Finally, he  said that  student success is  not about  seat time,                                                               
but mastery of subject matter is essential.                                                                                     
                                                                                                                                
^PRESENTATION(S):    Higher  Education Scholarship  Funding  Task                                                               
Force                                                                                                                           
  PRESENTATION(S):  Higher Education Scholarship Funding Task                                                               
                             Force                                                                                          
                                                                                                                                
8:27:03 AM                                                                                                                    
                                                                                                                                
CHAIR DICK announced  that the next order of business  would be a                                                               
presentation from  the Higher Education Scholarship  Funding Task                                                               
Force.                                                                                                                          
                                                                                                                                
8:27:46 AM                                                                                                                    
                                                                                                                                
EDDY  JEANS,   Education  Policy   Coordinator,  Office   of  the                                                               
Commissioner,  Department  of  Education  and  Early  Development                                                               
(EED),  briefed  the  committee  regarding  the  house  committee                                                               
substitute  (HCS)  for  the  committee  substitute  (CS)  for  SB
221(FIN),  which  passed  the  legislature in  2010.    The  bill                                                               
established  a  merit  scholarship program  for  graduating  high                                                               
school  students.   It specified  that any  graduate meeting  the                                                               
criteria  for rigorous  course requirements,  maintaining a  good                                                               
grade  point average  (GPA),  and scoring  well  on the  American                                                               
College  Testing  (ACT)  or Scholastic  Achievement  Test  (SAT),                                                               
could qualify  for three different  levels of funding  awards for                                                               
attendance to an  in-state institution.  The  bill was structured                                                               
using  Wyoming's Hathaway  plan as  a  model, which  in turn  was                                                               
based on  the Taylor Foundation  plan out  of Louisiana.   A zero                                                               
fiscal note was passed, in 2010,  as the graduating class of 2011                                                               
will  be the  first to  receive entitlement.   Thus,  it will  be                                                               
incumbent  on the  27th legislature  to allocate  funding in  the                                                               
2012 budget cycle, and the  department has requested $8.2 million                                                               
to fund the first year.  Because  this is new ground for EED, the                                                               
funding  request  was based  on  estimates  of eligibility.    He                                                               
reported that  EED has been  developing regulations  to implement                                                               
the program,  and building in  transition requirements,  with the                                                               
understanding  that  the  2011  seniors  may  not  have  had  the                                                               
opportunity  to choose  a course  of  study that  would meet  the                                                               
qualification standards.   By 2013 the students  will be required                                                               
to meet the full curricula  established.  The transition and full                                                               
requirements   have   been   distributed   to   school   district                                                               
counselors,   superintendents,   and   principals.      Directing                                                               
attention  to the  committee handout  titled "Alaska  Performance                                                               
Scholarship Requirements 2011, he  indicated the award levels and                                                               
score requirements necessary to qualify:   Level 1 Honors, awards                                                               
up  to $4,755  per year  to students  maintaining a  GPA of  3.5,                                                               
achieving  an  ACT  score  of  25,  or SAT  score  of  1680  -  a                                                               
career/technical  scholarship  requires  a  GPA   of  3.5  and  a                                                               
WorkKeys score  of 5;  Level 2 Achievement,  awards up  to $3,566                                                               
per year to  students maintaining a GPA of 3.0,  achieving an ACT                                                               
score  of  23,  or  SAT   score  of  1560  -  a  career/technical                                                               
scholarship requires  a GPA  of 3.0  and a  WorkKeys score  of 5;                                                               
Level  3 Opportunity  awards up  to $2,378  per year  to students                                                               
maintaining a  GPA of 2.5, achieving  an ACT score of  21, or SAT                                                               
score of 1450 - a career  technical scholarship requires a GPA of                                                               
2.5 and  a WorkKeys score  of 5.   Mr. Jeans provided  a personal                                                               
anecdote, regarding  the inability  of his daughter,  an upcoming                                                               
graduate, who  has failed  to meet  minimum requirements  for the                                                               
ACT/SAT scores,  but maintains a  high GPA.  These  standards may                                                               
serve to raise parental awareness  of the competency skills which                                                               
are, or are not, being attained  in the school system, he opined.                                                               
The  legislation  coming  before   the  committee  this  session,                                                               
proposes  a  funding  mechanism  for long  term  support  of  the                                                               
scholarship program.  The intent is  to establish a fund that can                                                               
be capitalized and  the interest income used  for the scholarship                                                               
awards.   The  funding  task force  identified  various means  to                                                               
accomplish this task.                                                                                                           
                                                                                                                                
8:35:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE questioned the SAT score requirements.                                                                     
                                                                                                                                
MR. JEANS responded that the  SAT cutoff scores were aligned with                                                               
the standards  used in Wyoming  and Louisiana.  Further,  he said                                                               
that  when a  student scores  a  21, or  above, on  the ACT,  the                                                               
chances  for  having to  take  remediation  classes at  the  post                                                               
secondary level are  minimal.  The intent, he said  is to require                                                               
rigorous  study  in  high  school  and  eliminate  the  need  for                                                               
remedial   classes  in   college.     Following  some   committee                                                               
discussion of  the ACT/SAT scoring requirements,  Mr. Jeans added                                                               
that students  in Alaska sometimes  score above the ACT  25 rank,                                                               
but the GPA's don't necessarily  support that type of brilliance.                                                               
A conclusion  might be  drawn that these  students are  not being                                                               
adequately  challenged and  the  converse to  that  is the  grade                                                               
inflation as previously mentioned regarding his daughter.                                                                       
                                                                                                                                
8:39:36 AM                                                                                                                    
                                                                                                                                
CHAIR DICK  opined that  rural schools may  find it  difficult to                                                               
provide the required scholastic support  for a student to qualify                                                               
under these standards.                                                                                                          
                                                                                                                                
MR. JEANS assured  the committee that the  issue of accessibility                                                               
was   raised,  when   the  standards   were  developed.     Every                                                               
superintendent was contacted and  EED received assurance that, by                                                               
the time the  program is fully implemented, any  student would be                                                               
able  to  receive  the  appropriate   guidance  to  qualify;  not                                                               
necessarily  in every  school  but via  alternative  means.   The                                                               
department is developing a virtual  school, through a request for                                                               
proposal  (RFP)  recently  awarded   to  the  Southeast  Regional                                                               
Resource Center (SERRC).                                                                                                        
                                                                                                                                
The committee took an at-ease from 8:41 a.m. to 8:42 a.m.                                                                       
                                                                                                                                
8:42:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI referred to  the committee handout titled                                                               
"Scholarship Funding  Task Force  Report to the  Legislature Fall                                                               
2010,"   to  point   out  that   it  contains   several  bulleted                                                               
recommendations, and asked if any  have been implemented into the                                                               
governor's current bill.                                                                                                        
                                                                                                                                
MR. JEANS  reiterated that the  2011 bill focuses on  the funding                                                               
structure.  The listed recommendations  will be addressed through                                                               
the regulatory process  at EED; discussions are in  progress.  He                                                               
said  if any  recommendations cannot  be handled  via regulation,                                                               
the points will be brought before the legislature.                                                                              
                                                                                                                                
REPRESENTATIVE KAWASAKI  noted that  the assessment of  the merit                                                               
component for  the scholarship award has  received criticism, and                                                               
he  asked  for comment;  specifically  is  the intent  to  reward                                                               
students who  do well, or provide  an indicator of how  a student                                                               
may perform at  college.  He reported that he  excelled as a high                                                               
school student but struggled at the college level.                                                                              
                                                                                                                                
MR. JEANS said that the public  notices describe the program as a                                                               
reward for  anyone who steps up  to the plate and  performs well.                                                               
The  intent is  to have  students  better prepared  for the  next                                                               
chapter of their lives.                                                                                                         
                                                                                                                                
REPRESENTATIVE    KAWASAKI   returned    to   the    task   force                                                               
recommendations, and asked what  is being addressed regarding the                                                               
reintegration of a needs-based component.                                                                                       
                                                                                                                                
MR. JEANS  offered that EED  does not  support a program  that is                                                               
based strictly on financial need.   He explained that needs-based                                                               
does not  incorporate academic preparedness, which  is the intent                                                               
of the scholarship  program.  The current  needs-based program is                                                               
AlaskAdvantage,  which is  underfunded  but could  be  used as  a                                                               
mechanism to  supplement the merit  performance scholarship.   He                                                               
reported  that  AlaskAdvantage  recipients often  enter  college,                                                               
become discouraged, and do not complete a course of study.                                                                      
                                                                                                                                
8:47:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON provided  comments from  student school                                                               
board  members   regarding  the   ability  to  qualify   for  the                                                               
scholarship, and  said it is  apparent that high schools  vary in                                                               
graduation credit requirements.                                                                                                 
                                                                                                                                
MR. JEANS  clarified that the  current graduation  requirement is                                                               
21 credits,  as set by the  state school board.   The performance                                                               
scholarship program  requires 16  credits in  the areas  of math,                                                               
science, language arts, and social  studies.  He pointed out that                                                               
many  school districts  have  higher  credit requirements,  thus,                                                               
there is latitude for the students to achieve personal goals.                                                                   
                                                                                                                                
The committee took an at-ease from 8:49 a.m. to 8:51 a.m.                                                                       
                                                                                                                                
8:51:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI  inquired  about  the  progress  EED  is                                                               
making regarding distance delivery for the required courses.                                                                    
                                                                                                                                
MR.  JEANS  answered  that  the  distance  instruction  is  being                                                               
developed  by  SERRC  in  conjunction  with  the  virtual  school                                                               
program RFP.                                                                                                                    
                                                                                                                                
8:52:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON returned attention  to the committee packet                                                               
handout  titled "Scholarship  Funding Task  Force, Report  to the                                                               
Legislature,  Fall  2010," and  named  the  members of  the  task                                                               
force:    Chair  Kevin  Meyers,   Senators  Johnny  Ellis,  Lyman                                                               
Hoffman, Gary  Stevens, and  Joe Thomas;  Vice Chair  Paul Seaton                                                               
and Representatives  Peggy Wilson,  Wes Keller,  Anna Fairclough,                                                               
and Chris Tuck; Diane Barrans,  Department of Education and Early                                                               
Development  (EED), Eddy  Jeans,  EED, Karen  Rehfield Office  of                                                               
Management  and   Budget  (OMB),  Esther  Cox,   State  Board  of                                                               
Education  and Early  Development, and  Saichi Oba  University of                                                               
Alaska.  The purpose of the task  force was to work on the issues                                                               
that were  raised when SB 221  passed the 26th Legislature.   The                                                               
two primary  areas to be  addressed were: discovery of  a funding                                                               
mechanism for  the scholarship  program, and  recommendations for                                                               
programmatic changes.                                                                                                           
                                                                                                                                
8:54:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON referred  to the  Executive Summary,  page                                                               
ii, to address  the bulleted recommendations.   It was determined                                                               
that  the scholarship  fund  should be  a  self sufficient,  self                                                               
sustaining program,  independent of  a fluctuating  money source,                                                               
to ensure  that all outstanding  award contracts can  be honored.                                                               
He reported  that the expectation  is to award  approximately $40                                                               
million  per year,  thus  the  fund should  be  capitalized to  a                                                               
minimum  balance  of  $160  million.   Given  the  scope  of  the                                                               
program, this  is not an  inflated number, he advised,  and added                                                               
that  students are  a  great  resource, and  it  is important  to                                                               
elevate  this resource  through appropriate  investment.   It was                                                               
determined that  EED should specify the  course requirements, not                                                               
specifically delineated  in statute  for each  curricular subject                                                               
area and define the content  requirements and standards for those                                                               
courses.    Additionally,  EED  specifications  were  to  include                                                               
options for  the two  career tracks being  served by  the awards;                                                               
academic  or  career/technical  certification.   The  ability  to                                                               
provide  distance  delivery  was  also reviewed  to  ensure  that                                                               
remote schools  will have the  ability to access  required course                                                               
work.    The  task  force  concurred with  the  decision  by  the                                                               
education committees, of both legislative  branches, to provide a                                                               
needs-based component  to directly support  academically eligible                                                               
students  who have  limited financial  resources.   The component                                                               
meets   the  needs   of  traditional   students;  however,   non-                                                               
traditional  student populations  also  exist.   Considering  the                                                               
diminishing educational  levels of the current  workforce, it was                                                               
deemed  important  to  continue  and expand  the  existing  grant                                                               
program  known as  AlaskAdvantage.   He  reported  that the  task                                                               
force recommends the  supplemental scholarship and AlaskAdvantage                                                               
grant programs  be programmatically separate, but  share the same                                                               
funding  mechanism,   under  a  funding  formula   which  ensures                                                               
adequate support for both.   Representative Seaton said testimony                                                               
before the  task force brought  to the  fore the practice  of the                                                               
University  of  Alaska  (UA)  system  to  offer  degree  required                                                               
courses on a five year rotating  basis; negating the ability of a                                                               
student  to   take  appropriate   advantage  of  the   four  year                                                               
scholarship  program.    Thus, two  policy  recommendations  were                                                               
made:   any institution which  accepts scholarship  awards should                                                               
integrate  an  advisor/advocate  program to  assist  awardees  in                                                               
expediting completion  time; and institutions  accepting awardees                                                               
should  make  a good  faith  effort  to provide  course  delivery                                                               
structures  that  allow   for  two/four  year  certificate/degree                                                               
completion  timelines.    Implementation   of  these  steps  will                                                               
provide the opportunity  for students to have a  clear path, with                                                               
appropriately  sequenced courses,  while  receiving the  advisory                                                               
support that has proven to be a key element to student success.                                                                 
                                                                                                                                
9:09:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   directed  attention   to  page   5,  and                                                               
paraphrased  from   the  recommendation,  which   read  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
      In general, and as much as is practicable, the Task                                                                       
        Force recommends that sources of funding for the                                                                        
     Scholarship   by   positively  identified,   "funds-in"                                                                    
     revenue be  affirmatively designated and  General Funds                                                                    
     be used as  necessary and in supplement  only. In order                                                                    
     of preference,  from "first place  to go" to  last, the                                                                    
     Task  Force   advises  the  Legislature  to   fund  the                                                                    
     Scholarship Fund as follows:                                                                                               
                                                                                                                                
     Designating Interest from Specific, Existing Accounts                                                                      
                                                                                                                                
     Designating Program Receipts and Dividends                                                                                 
                                                                                                                                
     Designating Revenues from Specific, External Sources                                                                       
                                                                                                                                
     Re-appropriated Assets from Liquidated Accounts                                                                            
                                                                                                                                
     General Funds                                                                                                              
                                                                                                                                
REPRESENTATIVE  SEATON  said that  a  stable  funding source  was                                                               
stressed  in  order to  assure  students  that the  program  will                                                               
remain solvent.   Several options were discussed,  and he offered                                                               
examples  of  the reasoning  that  resulted  in the  five  listed                                                               
approaches becoming  the focus for  recommendation.   Finally, he                                                               
reported that  when SB  221 passed,  the legislative  bodies held                                                               
differing  view regarding  class requirements.   However,  accord                                                               
remained  for the  bottom line  goal, which  is to  eliminate the                                                               
need for  remedial classes upon entry  to college.  As  a result,                                                               
both pathway/requirement structures were retained.                                                                              
                                                                                                                                
9:16:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON provided final  comments on the development                                                               
of  SB 221,  stating  that a  blank CS  was  used to  incorporate                                                               
changes into the governor's bill.   He explained the Amerada Hess                                                               
settlement, and  why it  was identified as  a funding  source for                                                               
the scholarship  awards.  It  was determined that  allocating the                                                               
Hess Fund  to capitalize the  scholarship program, and  using the                                                               
annual interest of $22-$30 million  to grant the awards, would be                                                               
appropriate  and provide  a solid  financial base.   Further,  he                                                               
said it  was deemed plausible  to designate  up to 15  percent of                                                               
the  progressivity element  of  the oil  tax  to the  scholarship                                                               
program as well.                                                                                                                
                                                                                                                                
9:21:24 AM                                                                                                                    
                                                                                                                                
CHAIR  DICK  announced  the  upcoming  meeting  and  thanked  the                                                               
participants.                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Education Standing Committee meeting was adjourned at 9:24 a.m.                                                                 

Document Name Date/Time Subjects
DEED Reg - Effective 2_25_11.pdf HEDC 2/2/2011 8:00:00 AM
DEED Reg- Effective 11_4_2010.pdf HEDC 2/2/2011 8:00:00 AM
Legislation re Gov Merit Scholarship Program.pdf HEDC 2/2/2011 8:00:00 AM
Scholarship Funding Task Force - Final Report.pdf HEDC 2/2/2011 8:00:00 AM