SENATE BILL NO. 33 "An Act creating a postsecondary scholarship grant program for Alaska residents based on high achievement and financial need." 9:06:41 AM Co-Chair Hoffman MOVED to ADOPT CSSB 33 (FIN), labeled 26- LS0219\W, Mischel, 3/31/10. Co-Chair Stedman OBJECTED for discussion. Senator Ellis, sponsor, shared the following information: I originally introduced Senate Bill 33 in 2006 as the Alaska Achievers Incentive Program. o Worked with student leaders o Gained sponsorships from Senators Thomas, Paskvan, Stevens, and McGuire o Endorsed by the Taylor Foundation, Juneau Assembly, and Fairbanks Assembly o Original bill created a hybrid need and merit based scholarship that would have provided at least $1,000 per year to high achieving students with financial need. The governor's introduction of the GPS legislation this past summer elevated the issue, and I am very pleased to see the slate of policy options that we will be discussing today. o Over the past 8 months, I have been engaged in many conversations with my legislative colleagues, financial aid experts from the University of Alaska and around the country, and hundreds of students and parents. o Although I am a strong supporter of the concepts expressed by the governor in his bill, I am also very concerned about the implementation of the bill, as well as the opportunity to get something passed this year. o SB 33 addresses those concerns in ways that reflect the many conversations I have had over my years of involvement in this issue. ƒI call this new version of SB 33 the AlaskAdvantage Grant and Loan Forgiveness Program. AlaskAdvantage Grant and Loan Forgiveness Program o Adds a loan forgiveness component to the existing AlaskAdvantage Grant Program. ƒStudents who were eligible for AlaskAdvantage Grants can receive funds to forgive loans made through ACPE for up to four years after graduation if they attend Alaska institutions and remain in Alaska. ƒGPS is fully scholarship based, which rewards students on potential rather than performance. o Maintains the emphasis on priority career tracks (a concern of Senator Huggins) ƒIncreased grant amounts for students in preparation for hard-to-fill jobs. · Currently allied health, community/social service, teaching, and natural resources extraction/support o See article in your packet re: workforce shortage for pipeline ƒFor loan forgiveness, graduates must be employed in those fields for increased awards. ƒGPS does not have any emphasis on developing Alaska's workforce. o Adds a merit-based priority ƒIncreased grant amounts for students who are performing at a high level in college. ƒFor loan forgiveness, increased award depends on final GPA. o Updates the award amounts to reflect today's cost of higher education. ƒMinimum annual award of $1,000, maximum annual award of $5,000. ƒTotal lifetime cap (whether received in grants or loan forgiveness) of $20,000 per student. ƒStructure allows the Legislature through appropriations process to manage the cost, in contrast to GPS which is set up as an entitlement in which programs drive costs. o Other GPS concerns addressed by AlaskAdvantage Grant and Loan Forgiveness ƒNon-traditional students - continuing education, workers changing careers, older first-time students - are ineligible for GPS, but qualify for this bill. ƒMany rural students are disqualified for the GPS by the curriculum requirements that are not available in 20% of Alaska high schools. · Those requirements also create an unfunded mandate of uncertain cost on local school districts and REAA's. Senator Ellis listed several options if no bill can pass: o Fund existing AlaskAdvantage Grant Program - currently receiving no General Fund. o Fund existing UA Scholars Program - currently receiving no General Fund. o Task force to continue studying the transformative scholarship concepts in the Governor's Scholarship Program 9:12:36 AM MAX HENSLEY, STAFF, SENATOR JOHNNY ELLIS, dispelled the idea that this legislation was the old loan forgiveness program. There are several significant differences: it only includes students who attend college in the state of Alaska, it has a limited cost, and it is more easily tracked because it is limited to loans made through the state's loan programs. Mr. Hensley reported on the sections of the bill: · Section one amends the purpose of the AlaskAdvantage Grant Program to include loan forgiveness. · Sections 2, 3, and 9 are conforming amendments to add 'loan forgiveness' to the title of the chapter. · Section 4 defines the size of the program, set at $10M annually in this draft. · Section 5 extends the current priority for career tracks and adds a merit-based priority for students with a GPA over 3.0, with a higher priority for students with a GPA over 3.5. · Section 6 outlines the qualifications for loan forgiveness - Alaska resident, graduated from Alaska higher education, in good standing on their repayment. · Sections 7 and 8 set the level of awards per student. 9:16:02 AM Senator Thomas asked how the allocation for loan forgiveness and/or grants is made to eligible students. Mr. Hensley clarified that the decision is left up to the Commission on Postsecondary Education. The current program places the highest priority on the students with the most need. Senator Thomas spoke in support of the changes in the bill. Co-Chair Stedman WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. 9:17:08 AM Senator Olson asked about the fiscal note from the Department of Revenue for $25,000. Mr. Hensley said that fiscal note refers to the previous version of the bill and there wasn't a new note yet. 9:18:03 AM Co-Chair Stedman noted two old fiscal notes which require updating. Senator Ellis thanked the committee for hearing the bill. SB 33 was heard and HELD in Committee for further consideration. AT-EASE 9:19:07 AM RECONVENED 9:22:10 AM