HB 48-AK PERFORMANCE SCHOLARSHIP; ELIGIBILITY  9:25:55 AM CO-CHAIR DRUMMOND announced that the next order of business would be SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 48, "An Act relating to the Alaska performance scholarship program." 9:26:11 AM CO-CHAIR STORY, as prime sponsor, presented SSHB 48 via a PowerPoint, titled "Improving the Alaska Performance Scholarship" [hard copy included in the committee packet]. She stated that the purpose of the proposed legislation is to improve the Alaska Performance Scholarship (APS) program by increasing its use, which would "grow" Alaska's workforce. As addressed on slides 2-4, she spoke about workers in the state leaving the workforce. She pointed out that the statistics show if students attend postsecondary institutions in Alaska, they are more likely to stay and work in the state. She noted that APS was created in 2010 to retain students in the state; however, the use of the program has been less than half of what was anticipated. She stated that SSHB 48 would add career and technical education (CTE) credits to APS eligibility. She noted that graduation rates increase when students take CTE classes. She listed the three options of applying CTE credits: a student may replace one credit social studies with one credit CTE, replace two credits world language with two credits CTE, or replace one credit social studies with one credit CTE. 9:31:47 AM CO-CHAIR STORY discussed the program review and recommendations, beginning on slide 5. Drawing attention to slide 6, she expressed the desire to keep APS competitive. She indicated that SSHB 48 would expand the use of the scholarship from six years to eight years, allowing students to take "gap years," and it would increase the award. She pointed out on slide 6 the use and decline of the scholarship by region. On slide 7, she pointed out that the proposed legislation would increase the award, as follows: from $4,755 to $7,000 for a grade point average (GPA) of 3.5 or higher; from $3,566 to $5,250 for GPA of 3.0 up to 3.5; and from $2,378 to $3,500 for GPA of 2.5 up to 3.0. She explained that these numbers are sustainable draws from the Higher Education Investment Fund, which is sourced from investment returns. She stated that the proposed legislation would remove the college entrance examination requirement for the award. She maintained that research suggests that GPA is a much better predictor of college success, as seen on slide 8. 9:35:18 AM CO-CHAIR STORY highlighted slide 9, which addresses making APS more accessible. She stated that to determine whether students are on track for the program, the proposed legislation would require a check in by January 31 of their junior year. She noted that some states have a deadline for the scholarship, and she had considered an amendment to add this provision. Moving to slide 10, she pointed out some photographs of student involvement. She expressed excitement to see the students who have higher success in high school and college under this program. 9:37:40 AM ARIEL SVETLIK, Staff, Representative Andi Story, Alaska State Legislature, on behalf of Representative Story, prime sponsor, presented the changes in SSHB 48 [copy included in the committee packet], which read as follows [original punctuation provided]: Version G: Amends the title of this bill to align with changes made in the Sponsor Substitute. • Adds a new Section 3, requiring students to be notified of their progress towards receiving the APS scholarship during their junior year. • Adds a new Section 4, which increases the awards and removes entrance exam requirements. Changes to award amounts are as follows: o Level one: $7,000 (was previously $4,755) o Level two: $5,250 (was previously $3,566) o Level three: $3,500 (was previously $2,378) • Adds a new Section 5, which increases the number of years a student can use the scholarship after graduating high school from six to eight years. 9:40:25 AM MS. SVETLIK pointed out the document provided by the Association of Career and Technical Education (ACTE) [copy included in the committee packet]. She stated that the document includes a discussion of ACTE's impact on the workforce. It contains a list of institutions in Alaska which accept APS; a list of CTE programs where the scholarship can be used; a data sheet from the National Conference of State Legislatures showing scholarships offered in all 50 states; and the APS review which has influenced many of the changes in SSHB 48. 9:42:16 AM CO-CHAIR DRUMMOND announced the committee would hear invited testimony on HB 48. 9:43:06 AM SANA EFIRD, Executive Director, Alaska Commission on Postsecondary Education (ACPE), Department of Education and Early Development, gave invited testimony in support of SSHB 48. She shared that ACPE's mission is to support secondary education, and the proposed legislation directly supports the work of the commission. She said, "To provide for a growing, robust, Alaska economy, at least 65 percent of Alaskans will need some type of postsecondary credential to obtain living-wage employment and to meet Alaska's workforce needs." She shared that a national survey of the 2020 graduating class found the top reason for not pursuing postsecondary education had been financial concerns. To ensure Alaskans have access to funds, she said, APS is vital. She reviewed the history of the scholarship, and she reported that since its inception, 26,713 Alaska high school graduates have earned eligibility for the scholarship. Furthermore, 11,383 graduates have received the award, which represents 13 percent of all graduates and 43 percent of the eligible students. She echoed the information regarding the likelihood of students remaining in Alaska if they get a postsecondary education in the state. MS. EFIRD named four primary objectives of APS, as follows: to offer an incentive for Alaska students to excel in high school; to prepare Alaska students for college or career training; to help Alaska students succeed in postsecondary programs; and to keep skilled, high-achieving graduates in Alaska. She said annual surveys conducted by ACPE have validated the importance of APS. She stated that of the first full-time APS students who began their enrollment in 2015 in the University of Alaska system, 62 percent of these students completed an undergraduate degree certificate or occupational endorsement within 6 years. She compared this to only 29 percent of other students. 9:47:27 AM MS. EFIRD called APS "a motivator for better grades" and shared statistics in support of the statement, including the preparedness of those in the program and their higher rate of involvement in the workforce. She commented on the comprehensive documentation of the program, which includes 11 reports and a full program review focused on program improvement. She pointed out a 2021 APS student survey and quoted students who had recommended the program. She concluded her testimony by reiterating ACPE's support for the proposed legislation. 9:52:26 AM REBECCA BRAUN, Consultant, McKinley Research Group, LLC, provided invited testimony in support of SSHB 48. She pointed out that not using APS equals missed opportunities, and this [negatively] affects the workforce in the state. She said program participation had peaked at 902 students in 2016, and then dropped to 644 in 2019 and 700 in 2020. She stated that eligibility had varied from 23 percent to 34 percent over the first 9 years of the program, peaking in 2014. She explained that eligibility went up in 2020 and 2021 because ACPE had suspended the testing requirements during the COVID-19 pandemic. She stated that across the board eligibility has grown by 63 percent, with the highest growth percentages being among Alaska Native, African American, Native Hawaiian, and Pacific Islander students. She advised that the test is a disproportionate barrier for certain underrepresented groups. 9:56:37 AM MS. BRAUN highlighted results from a survey by the McKinley Research Group, LLC. She stated that about 6,000 high school students between 2015 and 2020 had been surveyed, with many eligible graduates choosing an out of state school. This choice had been based on the belief that they would receive a better education. She stated this points to a lack of confidence in the University of Alaska system. She added that scholarships or financial aid packages were cited as other reasons. She continued that almost half of ineligible students were interested in qualifying for the program in high school; however, they did not meet test score requirements or did not take the test. She said interviews with administrators, data, and survey responses all corroborated this. She stressed that the issue of testing came up consistently. She stated that national trends show grades are a better indicator of college success than standardized tests, which have inequitable impact and serve as barriers to underrepresented groups. She reported that the Scholastic Aptitude Test (SAT) scores highly correlate with family income. She related that the National College Access Network found when schools removed test requirements, they ended up with more diverse student bodies and did not see a decrease in student quality or success. She said, concerning financial aid and admission decisions, the role of standardized testing is declining. 10:01:48 AM MS. BRAUN stated that 80 percent of schools have now suspended test requirements, many permanently. The University of Alaska Fairbanks, which still requires standardized tests, has waived the requirement at least through 2025. She pointed out quotes which highlighted the trend of moving away from these tests. She said, "The more other institutions and other scholarships remove testing requirements, the fewer Alaska students are actually going to be motivated to take it, and then APS will lose even more and more potential students who could be strong candidates. I think that's a sort of growing risk." MS. BRAUN said the recommendation from the McKinley Group study was to simplify program eligibility by eliminating the distinction between academic and CTE awards; thus, offering alternative pathways to demonstrate academic rigor. She stated that SSHB 48 would support this. Regarding the requirement in the proposed legislation of using three years for eligibility in award determination, she argued that using only three years would mean "students don't meet the necessary rigor." She recommended the committee consider amending this to three- and one-half years. She pointed out the recommendation to extend the six-year window to eight years, which the legislation would do. She highlighted other provisions in SSHB 48, including increasing access, eliminating testing requirements, earlier ongoing academic counseling for students, and amending the dollar amount of APS awards to keep pace with costs. 10:06:01 AM The committee took a brief at-ease at 10:06 a.m. 10:06:20 AM [Public testimony was not officially opened at this point; however, Co-Chair Drummond subsequently stated that Ms. Smolin's statement was part of public testimony.] CARIN SMOLIN, Career and Technical Education Coordinator, Juneau School District, testified in support of HB 48. She called the proposed legislation timely and needed. She cited data which reflects a high rate of students who take CTE classes in high school will go on to postsecondary education. She highlighted the provisions and asked the committee to support the proposed legislation. 10:08:43 AM CO-CHAIR DRUMMOND opened public testimony on HB 48. 10:09:22 AM DAVE REES, Alaska Business Education Compact (ABEC), said ABEC's focus is on connecting educators and employers in partnerships to focus on career pathways for students. He indicated that students often leave CTE programs at [the high school] level to prepare for the APS requirements. He said ABEC supports the change in the APS qualifications under the proposed legislation. He emphasized that CTE is much more than auto shop classes, as it is helpful to those going into occupations related to science, technology, engineering, and math. [Public testimony remained open.] 10:13:40 AM CO-CHAIR DRUMMOND announced that HB 48 was held over.