Legislature(2007 - 2008)BUTROVICH 205

03/30/2007 08:00 AM Senate SPECIAL COMMITTEE ON EDUCATION


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Audio Topic
08:06:50 AM Start
08:14:49 AM Consideration: College Affordability
09:03:38 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
College Affordability
Bills Previously Heard/Scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
             SENATE SPECIAL COMMITTEE ON EDUCATION                                                                            
                         March 30, 2007                                                                                         
                           8:06 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Gary Stevens, Chair                                                                                                     
Senator Charlie Huggins, Vice Chair                                                                                             
Senator Gary Wilken                                                                                                             
Senator Bettye Davis                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Donny Olson                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Consideration: College Affordability                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record.                                                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Saichi Oba, Enrollment Officer                                                                                                  
University of Alaska                                                                                                            
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Available for questions                                                                                   
                                                                                                                                
Pat Pitney, Director of Budget and Institutional Research                                                                       
University of Alaska                                                                                                            
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Available for questions                                                                                   
                                                                                                                                
Pete Kelly                                                                                                                      
University of Alaska Board of Regents                                                                                           
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Available for questions                                                                                   
                                                                                                                                
Diane Barrans, Executive Director                                                                                               
Alaska Commission on Postsecondary Education (ACPE)                                                                             
Juneau, AK                                                                                                                      
POSITION STATEMENT: Available for questions                                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  GARY  STEVENS  called  the  Senate  Special  Committee  on                                                             
Education meeting to order at 8:06:50  AM. Present at the call to                                                             
order were Senators Wilken, Davis, Huggins, and Chair Stevens.                                                                  
                                                                                                                                
             ^CONSIDERATION: COLLEGE AFFORDABILITY                                                                          
                                                                                                                                
CHAIR STEVENS  said that the purpose  of the meeting was  to talk                                                               
about ways to bring down the  costs of college in Alaska; he said                                                               
that the greatest concern is  making the community college system                                                               
entry  as  easy  and  affordable  as  possible.  In  Alaska,  the                                                               
community college  system has been  absorbed into  the university                                                               
system, which  is making  it hard  for people  to enter  two year                                                               
schools.  University tuition  is low,  but community  schools are                                                               
comparatively pricey.                                                                                                           
                                                                                                                                
He referenced  a report on  national college tuition  prices that                                                               
shows   that   Alaska  has   been   graded   poorly  on   college                                                               
affordability; there's no major  difference between the prices in                                                               
low  and higher  level college.  For the  population at  lower or                                                               
middle income levels, the percentage  of income required to go to                                                               
school is huge.                                                                                                                 
                                                                                                                                
He  added that  it's important  to realize  that Alaska  needs to                                                               
catch  up with  the rest  of  the country  in lowering  community                                                               
college fees;  high prices  are unfair to  the Alaska  public. He                                                               
said that he has introduced a  bill to separate the University of                                                               
Alaska  (UA)  system from  the  community  college system,  which                                                               
hopefully won't  be necessary but  may open the  conversation. He                                                               
explained the history  of the community college  system in Alaska                                                               
and why  he wishes to get  to a lower-cost system;  colleges need                                                               
to pay attention to students with financial difficulties.                                                                       
                                                                                                                                
8:14:49 AM                                                                                                                    
                                                                                                                                
SENATOR HUGGINS commented that a lot  of states did poorly on the                                                               
report previously referenced.                                                                                                   
                                                                                                                                
CHAIR STEVENS  said that  the report looks  at the  percentage of                                                               
income required to fund a community college education.                                                                          
                                                                                                                                
SENATOR  HUGGINS said  that  he  agreed with  the  need to  lower                                                               
costs, because school  needs to be convenient  and affordable for                                                               
certain students.  It's illogical  that community  colleges would                                                               
cost the same as four-year schools.                                                                                             
                                                                                                                                
CHAIR STEVENS  referenced a  study that  shows the  importance of                                                               
lower-cost community colleges.                                                                                                  
                                                                                                                                
8:17:16 AM                                                                                                                    
                                                                                                                                
SENATOR WILKEN  agreed that the  issue is important, and  said he                                                               
would  hope that  the UA  sees the  report. He  pointed out  that                                                               
university tuition  in Alaska is  low but community  colleges are                                                               
high, which doesn't compare well with other states.                                                                             
                                                                                                                                
8:19:11 AM                                                                                                                    
                                                                                                                                
SENATOR HUGGINS  referenced a page  of the report to  remark that                                                               
some of the numbers are unclear.                                                                                                
                                                                                                                                
CHAIR STEVENS  said that he  doesn't know how the  report numbers                                                               
are categorized;  the committee  should concern itself  more with                                                               
the issue than the numbers. He  commented that some people in his                                                               
district find  attending out-of-state schools to  be cheaper than                                                               
living in Alaska and attending school here.                                                                                     
                                                                                                                                
8:21:33 AM                                                                                                                    
                                                                                                                                
SAICHI  OBA, Enrollment  Officer with  the University  of Alaska,                                                               
said that the  UA struggles with this situation as  well, and the                                                               
issue   should  be   one  of   affordability  more   than  price.                                                               
Nationally,  11  percent of  community  college  funds come  from                                                               
local  municipalities and  so the  schools can  accordingly lower                                                               
tuition, but in Alaska this isn't the case for the most part.                                                                   
                                                                                                                                
He commented  that community campuses are  opportunities to serve                                                               
people  who can't  travel, and  they're a  vital link  for people                                                               
aspiring to  a four-year degree.  Most of  the campuses run  at a                                                               
high  cost model;  he's aware  of the  report mentioned,  and the                                                               
level  of  financial  support  given  in  many  states  to  needy                                                               
students is higher than in Alaska.                                                                                              
                                                                                                                                
8:26:17 AM                                                                                                                    
                                                                                                                                
CHAIR  STEVENS  said  that  Alaska's   school  system  was  built                                                               
differently, not  starting with local support,  which was perhaps                                                               
the wrong way to begin.                                                                                                         
                                                                                                                                
MR.  OBAI  said  that  he  was  unaware  of  that  dynamic;  many                                                               
communities with campuses could be  considered to be in financial                                                               
difficulty, so that complicates the problem.                                                                                    
                                                                                                                                
CHAIR STEVENS said  that over half the students in  the UA system                                                               
come from  the integrated  community schools;  it does  seem that                                                               
something has been  lost in the melding of the  two, as important                                                               
as it was.                                                                                                                      
                                                                                                                                
8:28:44 AM                                                                                                                    
                                                                                                                                
PAT  PITNEY, Director  of Budget  and Institutional  Research for                                                               
the UA, said  that she's interested in the cost  and revenue side                                                               
of the matter,  and explained that several campuses  base much of                                                               
their  operation on  tuition; lowering  tuition costs  would mean                                                               
the money  would have to  come from a replacement  source. What's                                                               
been lost through  the integration has been some  of the identity                                                               
of the schools,  but the improvement of  continuing education has                                                               
been a great  gain. In terms of additional  degree offerings, the                                                               
associate  degrees   offerings,  which  are  the   main  goal  of                                                               
community colleges, have increased the most.                                                                                    
                                                                                                                                
8:31:42 AM                                                                                                                    
                                                                                                                                
CHAIR STEVENS  agreed that there were  reasons for consolidation,                                                               
and asked when the consolidation took place.                                                                                    
                                                                                                                                
MS.  PITNEY replied  that  it was  in 1987,  when  there were  11                                                               
separately accredited community colleges  in the state. There was                                                               
much less assistance  in terms of support, and going  back to the                                                               
old model wouldn't be a good solution.                                                                                          
                                                                                                                                
CHAIR  STEVENS replied  that there  were many  advantages to  the                                                               
consolidation  including easier  transferal of  credit, but  when                                                               
there  were two  systems the  cost  of classes  was more  readily                                                               
identifiable; perhaps this needs to be corrected.                                                                               
                                                                                                                                
MS. PITNEY said that the  differences among the faculty have been                                                               
preserved,  and   the  cost  per  credit   is  differentiated  in                                                               
community schools. The  exact distinction may not be  as clear as                                                               
in the 4-year schools.                                                                                                          
                                                                                                                                
8:36:05 AM                                                                                                                    
                                                                                                                                
CHAIR STEVENS  said that the problem  is huge and can't  be fixed                                                               
in a  single day, but  across the country school  chancellors are                                                               
trying to lower  costs and we can't continue  blaming the problem                                                               
on various  issues; we  should see  if there's  a solution  to be                                                               
found.                                                                                                                          
                                                                                                                                
MS. PITNEY  said that  the UA  is looking  into the  problem now.                                                               
Community campuses  are a key piece  of the UA system;  over half                                                               
of high-demand graduates  have taken classes at more  than one UA                                                               
school.                                                                                                                         
                                                                                                                                
CHAIR  STEVENS said  that community  involvement is  important as                                                               
well.                                                                                                                           
                                                                                                                                
8:39:03 AM                                                                                                                    
                                                                                                                                
SENATOR HUGGINS referenced  the tuition study, and  said that the                                                               
national average  for community  college costs shows  that Alaska                                                               
costs are among  the highest; he asked for  Ms. Pitney's comments                                                               
on national trends.                                                                                                             
                                                                                                                                
MS. PITNEY said that the  UA recognizes this differential; Alaska                                                               
community college  access costs are significantly  higher, and UA                                                               
campuses have been  told that they could not  raise tuition costs                                                               
but would have  to cut some conveniences and  programs. The state                                                               
needs  to  provide  more  need-based   aid,  which  is  currently                                                               
insufficient;  the   university  can't   offer  enough   to  meet                                                               
everyone's needs.                                                                                                               
                                                                                                                                
8:42:21 AM                                                                                                                    
                                                                                                                                
CHAIR STEVENS said  that no state has a  particularly good rating                                                               
in the previously referenced report.                                                                                            
                                                                                                                                
SENATOR WILKEN  commented that he  would be interested  in seeing                                                               
what the regents are doing about the issue.                                                                                     
                                                                                                                                
8:43:20 AM                                                                                                                    
                                                                                                                                
PETE KELLY, regent for the  University of Alaska, said that there                                                               
has been discussion about letting  separate campuses decide their                                                               
own tuition rates;  the relative affordability of  school is more                                                               
important than  the actual price.   He thanked the  committee for                                                               
discussing the issue, and said  that there's generally not enough                                                               
discussion about  the university; the  UA is thrilled to  see the                                                               
legislature  take  an  interest  in the  university  besides  its                                                               
budget. If  community colleges decide to  become more affordable,                                                               
it would cost  them greatly without a way of  replacing the money                                                               
through  other means.  He gave  an example  of history  of higher                                                               
education in  the US, and  reminded the committee  that recouping                                                               
from adjustments takes time and money.                                                                                          
                                                                                                                                
8:47:47 AM                                                                                                                    
                                                                                                                                
MR. OBA  said that the  differential tuition task force  has been                                                               
in  place since  the previous  fall, and  there's been  extensive                                                               
discussion  about  the matter  of  lowering  costs. Some  of  the                                                               
results  of analysis  are  staggering;  enrollment, for  example,                                                               
would have to be increased  50 percent to reach a revenue-neutral                                                               
situation.                                                                                                                      
                                                                                                                                
8:49:42 AM                                                                                                                    
                                                                                                                                
CHAIR STEVENS said that there  shouldn't be any conflict with the                                                               
board.  The issue  of  differential is  still  there though,  and                                                               
despite reasonable  four-year tuition,  the two-year  tuition has                                                               
suffered.                                                                                                                       
                                                                                                                                
MR.  KELLY said  that the  university is  certainly aware  of the                                                               
issue.                                                                                                                          
                                                                                                                                
8:51:01 AM                                                                                                                    
                                                                                                                                
SENATOR HUGGINS  asked for the  number of students  remaining in-                                                               
state to  go to school, and  added that nationally 80  percent of                                                               
students remain in state.                                                                                                       
                                                                                                                                
MR. KELLY replied that the  number of students remaining in state                                                               
is around 54 percent. Only two  years ago the 50 percent mark was                                                               
reached, at  the same time  that 50 percent of  Alaskan graduates                                                               
began choosing to go to college.                                                                                              
                                                                                                                                
8:52:41 AM                                                                                                                    
                                                                                                                                
SENATOR HUGGINS asked if the  UA Scholars program has helped with                                                               
student retention.                                                                                                              
                                                                                                                                
MR. KELLY replied  that it is a major catalyst,  but it's not the                                                               
only element.  A big  difference that  is does  make is  that now                                                               
that the smartest  kids in the class are going  to the UA system,                                                               
the other students consider the UA schools as an option as well.                                                                
                                                                                                                                
8:54:03 AM                                                                                                                    
                                                                                                                                
SENATOR HUGGINS remarked  that some schools in  other states have                                                               
legacy  scholarships, and  asked  if that  would  be feasible  in                                                               
Alaska.                                                                                                                         
                                                                                                                                
MR. KELLY said that around 90  percent of the UA Scholars program                                                               
graduates tend to stay in Alaska.                                                                                               
                                                                                                                                
8:55:44 AM                                                                                                                    
                                                                                                                                
MS. PITNEY said that there is  a legacy program in the UA system;                                                               
any child of an alumnus can attend at in-state tuition rates.                                                                   
                                                                                                                                
SENATOR  HUGGINS remarked  that the  college affordability  study                                                               
states that private university faculty  have higher salaries, and                                                               
asked for the difference in salaries in Alaska schools.                                                                         
                                                                                                                                
MS.  PITNEY said  that the  UA system  serves 93  percent of  the                                                               
students in  the state,  so the numbers  of private  school staff                                                               
and students in Alaska are very low.                                                                                            
                                                                                                                                
SENATOR  HUGGINS said  that he  had expected  that public  school                                                               
staff would be paid less than private school staff.                                                                             
                                                                                                                                
8:58:02 AM                                                                                                                    
                                                                                                                                
CHAIR STEVENS said  that needs-based aid is  important, and asked                                                               
Diane Barrans for comment.                                                                                                      
                                                                                                                                
DIANE BARRANS,  Executive Director  for the Alaska  Commission on                                                               
Postsecondary Education, said  that the bottom line  of the issue                                                               
is affordability;  in Alaska the  percentage of income  that goes                                                               
to  education  is  too  high  and deters  too  many  people  from                                                               
attending  college. The  governor has  a proposal  in the  budget                                                               
this year to  increase needs-based aid that will  bring Alaska to                                                               
the   national   average   in    terms   of   community   college                                                               
affordability.  The impact  of this  bill to  low-income families                                                               
would  be  huge;  it  would  raise  the  aspirations  of  Alaskan                                                               
students. There's  a big  personal and  public benefit  to higher                                                               
education.                                                                                                                      
                                                                                                                                
9:01:34 AM                                                                                                                    
                                                                                                                                
SENATOR HUGGINS asked if matching  funds from the family could be                                                               
proposed, including Permanent Fund Dividend savings.                                                                            
                                                                                                                                
MS. BARRANS  said that in  early outreach efforts ways  of saving                                                               
for  college   are  encouraged,  including  the   Permanent  Fund                                                               
Dividend  education savings  fund, but  many times  the money  is                                                               
just not available for education.                                                                                               
                                                                                                                                
CHAIR  STEVENS  thanked  the  presenters,  and,  there  being  no                                                               
further  business to  come before  the  committee, adjourned  the                                                               
meeting at 9:03:38 AM.                                                                                                        

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