H-0927.2                  _______________________________________________

 

                                                      HOUSE BILL 1603

                              _______________________________________________

 

State of Washington                              53rd Legislature                             1993 Regular Session

 

By Representatives Locke, Jacobsen, Quall, Shin, R. Johnson, Zellinsky, Pruitt, Carlson, Jones, Basich, Wang, Patterson, Thibaudeau, R. Meyers, Kessler, Bray, Campbell, Dorn, G. Fisher, Springer, Karahalios, Roland, Eide, Sheldon, Finkbeiner, Ogden, Orr, Wineberry, Veloria, Morris, Hansen and Wolfe

 

Read first time 02/03/93.  Referred to Committee on Higher Education.

 

Reforming higher education tuition and financial aid.


          AN ACT Relating to higher education; amending RCW 28B.15.031, 28B.15.065, 28B.15.067, 28B.15.070, 28B.15.202, 28B.15.402, 28B.15.502, 43.88.140, 28B.101.040, and 28B.12.040; adding new sections to chapter 28B.15 RCW; adding new sections to chapter 28B.10 RCW; adding new sections to chapter 28B.80 RCW; creating new sections; and making an appropriation.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

          NEW SECTION.  Sec. 1.  This act shall be known as the higher education access act.

 

        Sec. 2.  RCW 28B.15.031 and 1987 c 15 s 2 are each amended to read as follows:

          The term "operating fees" as used in this chapter shall include the fees, other than building fees, charged all students registering at the state's colleges and universities but shall not include fees for short courses, self-supporting degree credit programs and courses, marine station work, experimental station work, correspondence or extension courses, and individual instruction and student deposits or rentals, disciplinary and library fines, which colleges and universities shall have the right to impose, laboratory, gymnasium, health, and student activity fees, or fees, charges, rentals, and other income derived from any or all revenue producing lands, buildings and facilities of the colleges or universities heretofore or hereafter acquired, constructed or installed, including but not limited to income from rooms, dormitories, dining rooms, hospitals, infirmaries, housing or student activity buildings, vehicular parking facilities, land, or the appurtenances thereon, or such other special fees as may be established by any college or university board of trustees or regents from time to time.  All moneys received as operating fees at any institution of higher education shall be ((transmitted to the state treasurer within thirty-five days of receipt to be deposited in the state general fund)) deposited in a local account containing only operating fees revenue and related interest:  PROVIDED, That two and one-half percent of moneys received as operating fees be exempt from such deposit and be retained by the institutions for the purposes of RCW 28B.15.820((:  PROVIDED FURTHER, That money received by institutions of higher education from the periodic payment plan authorized by RCW 28B.15.411 shall be transmitted to the state treasurer within five days following the close of registration of the appropriate quarter or semester)).

 

        Sec. 3.  RCW 28B.15.065 and 1977 ex.s. c 322 s 6 are each amended to read as follows:

          It is the intent of the legislature that needy students not be deprived of access to higher education due to increases in educational costs or consequent increases in tuition ((and)) fees.  It is the sense of the legislature that state appropriations for student financial aid be adjusted in an amount which together with funds estimated to be available in the form of basic educational opportunity grants as authorized under Section 411 of the federal Higher Education Act of 1965 as now or hereafter amended will equal ((twenty-four percent of any change in revenue estimated to occur as a result of revisions in tuition and fee levels under the provisions of this 1977 amendatory act)) at least ten percent of the state general fund appropriations for higher education.  State general fund appropriations to higher education include but are not limited to state general fund appropriations for colleges, universities, work force training, and state agencies whose primary responsibility includes the coordination or governance of education and training of students in postsecondary education and training programs.

 

        Sec. 4.  RCW 28B.15.067 and 1992 c 231 s 4 are each amended to read as follows:

          (1) By June 1st of each year, the governing boards of the state universities, the regional universities, and The Evergreen State College, and the state board for community and technical colleges shall set tuition fees as necessary for the operation of the respective institutions and colleges, subject to any minimum and maximum tuition fee amounts established under this chapter.  Minimum and maximum tuition fees shall be established and adjusted annually under the provisions of this chapter beginning with the ((1987‑88)) 1993-94 academic year.  ((Such fees shall be identical, subject to other provisions of this chapter, for students enrolled at either state university, for students enrolled at the regional universities and The Evergreen State College and for students enrolled at any community college.  Tuition fees shall reflect the undergraduate and graduate educational costs of the state universities, the regional universities and the community colleges, respectively, in the amounts prescribed in this chapter.)) Tuition rates may vary by term, and tuition rates for graduate programs may vary by program.

          (2) The tuition fees established under this chapter shall not apply to high school students enrolling in community colleges under RCW 28A.600.­300 through 28A.600.395.

 

        Sec. 5.  RCW 28B.15.070 and 1992 c 231 s 5 are each amended to read as follows:

          (1) The higher education coordinating board, in consultation with the house of representatives and senate committees responsible for higher education, the respective fiscal committees of the house of representatives and senate, the office of financial management, and the state institutions of higher education, shall develop by December of every fourth year beginning in 1989, definitions, criteria, and procedures for determining the undergraduate and graduate educational costs for the state universities, regional universities, and community colleges upon which minimum and maximum tuition fees will be based.

          (2) Every four years, the state institutions of higher education in cooperation with the higher education coordinating board shall perform an educational cost study pursuant to subsection (1) of this section.  The study shall be conducted based on every fourth academic year beginning with 1989‑90.  Institutions shall complete the studies within one year of the end of the study year and report the results to the higher education coordinating board for consolidation, review, and distribution.

          (3) In order to conduct the study required by subsection (2) of this section, the higher education coordinating board, in cooperation with the institutions of higher education, shall develop a methodology that requires the collection of comparable educational cost data, which utilizes a faculty activity analysis or similar instrument.

          (4) Based on the most recent cost study, the higher education coordinating  board shall determine annual minimum and maximum tuition and fees.

 

        Sec. 6.  RCW 28B.15.202 and 1992 c 231 s 7 are each amended to read as follows:

          Minimum and maximum tuition fees and maximum services and activities fees at the University of Washington ((and at Washington State University)) for other than the summer term shall be as follows:

          (1) For full-time resident undergraduate students ((and all other full time resident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine)) who have accumulated fewer than two hundred forty quarter credits or their equivalent, the maximum total tuition fees shall be thirty-three and one-third percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be ((one hundred and twenty dollars)) six percent of total tuition fees.

          (2) For full-time resident undergraduate students who do not meet the requirements of subsection (1) of this section, and full-time resident postbaccalaureate students not enrolled in graduate or law programs or in programs leading to degrees of doctor of medicine or doctor of dental surgery, the minimum total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be six percent of total tuition fees.

          (((2))) (3) For full-time resident graduate and law students not enrolled in programs leading to the degrees of doctor of medicine((,)) and doctor of dental surgery((, and doctor of veterinary medicine)), the minimum total tuition fees shall be twenty‑three percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be ((one hundred and twenty dollars)) four percent of total tuition fees.

          (((3))) (4) For full-time resident students enrolled in programs leading to the degrees of doctor of medicine((,)) and doctor of dental surgery, ((and doctor of veterinary medicine,)) the total minimum tuition fees shall be one hundred sixty‑seven percent of such fees charged in subsection (((2))) (3) of this section:  PROVIDED, That the building fees for each academic year shall be ((three hundred and forty‑two dollars)) six percent of total tuition fees.

          (((4))) (5) For full-time nonresident undergraduate students and ((such)) other full-time nonresident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine((,)) and doctor of dental surgery((, or doctor of veterinary medicine)), the minimum total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be ((three hundred and fifty‑four dollars)) six percent of total tuition fees.

          (((5))) (6) For full-time nonresident graduate and law students not enrolled in programs leading to the degrees of doctor of medicine((,)) and doctor of dental surgery((, and doctor of veterinary medicine)), the minimum total tuition fees shall be sixty percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be ((three hundred and fifty‑four dollars)) four percent of total tuition fees.

          (((6))) (7) For full-time nonresident students enrolled in programs leading to the degrees of doctor of medicine((,)) and doctor of dental surgery((, and doctor of veterinary medicine,)) the minimum total tuition fees shall be one hundred sixty‑seven percent of such fees charged in subsection (((5))) (6) of this section:  PROVIDED, That the building fees for each academic year shall be ((five hundred and fifty‑five dollars.

          (7))) four percent of total tuition fees.

          (8) The governing board((s)) of the ((state universities)) University of Washington shall charge to and collect from each student, a services and activities fee.  The governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident undergraduate tuition fees:  PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt.  The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

 

          NEW SECTION.  Sec. 7.  A new section is added to chapter 28B.15 RCW to read as follows:

          Minimum and maximum tuition fees and maximum services and activities fees at Washington State University for other than the summer term shall be as follows:

          (1) For full-time resident undergraduate students who have accumulated fewer than one hundred sixty semester credits or their equivalent, the maximum total tuition fees shall be thirty-three and one-third percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.070:  PROVIDED, That the building fees for each academic year shall be six percent of total tuition fees.

          (2) For full-time resident undergraduate students who do not meet the requirements of subsection (1) of this section and full-time resident postbaccalaureate students not enrolled in graduate programs or in programs leading to the degree of doctor of veterinary medicine, the minimum total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be six percent of total tuition fees.

          (3) For full-time resident graduate students not enrolled in programs leading to the degree of doctor of veterinary medicine, the minimum total tuition fees shall be twenty‑three percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be four percent of total tuition fees.

          (4) For full-time resident students enrolled in programs leading to the degree of doctor of veterinary medicine, the minimum total tuition fees shall be one hundred sixty‑seven percent of such fees charged in subsection (3) of this section:  PROVIDED, That the building fees for each academic year shall be six percent of total tuition fees.

          (5) For full-time nonresident undergraduate students and nonresident students not in graduate study programs or enrolled in programs leading to the degree of doctor of veterinary medicine, the minimum total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be six percent of total tuition fees.

          (6) For full-time nonresident graduate students not enrolled in programs leading to the degree of doctor of veterinary medicine, the minimum total tuition fees shall be sixty percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be four percent of total tuition fees.

          (7) For full-time nonresident students enrolled in programs leading to the degree of doctor of veterinary medicine, the minimum total tuition fees shall be one hundred sixty‑seven percent of such fees charged in subsection (6) of this section:  PROVIDED, That the building fees for each academic year shall be four percent of total tuition fees.

          (8) The governing board of Washington State University shall charge to and collect from each student a services and activities fee.  The governing board may increase the existing fee, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident undergraduate tuition fees:  PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt.  The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

 

        Sec. 8.  RCW 28B.15.402 and 1992 c 231 s 10 are each amended to read as follows:

          Minimum and maximum tuition fees and maximum services and activities fees at the regional universities and The Evergreen State College for other than the summer term shall be as follows:

          (1) For full-time resident undergraduate students ((and all other full time resident students not in graduate study programs)) who have accumulated fewer than two hundred forty credits or their equivalent, the maximum total tuition fees shall be twenty-five percent of the per student undergraduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be ((seventy‑six dollars and fifty cents)) five percent of total tuition fees.

          (2) For full-time resident undergraduate students who do not meet the requirements of subsection (1) of this section and full-time resident postbaccalaureate students not enrolled in graduate programs, the minimum total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15. 070:  PROVIDED, That the building fees for each academic year shall be five percent of total tuition fees.

          (3) For full-time resident graduate students, the minimum total tuition fees shall be twenty‑three percent of the per student graduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be ((seventy‑six dollars and fifty cents)) three percent of total tuition fees.

          (((3))) (4) For full-time nonresident undergraduate students and all other full-time postbaccalaureate students and nonresident students not in graduate study programs, the minimum total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be ((two hundred and ninety‑five dollars and fifty cents)) five percent of total tuition fees.

          (((4))) (5) For full-time nonresident graduate students, the minimum total tuition fees shall be seventy‑five percent of the per student graduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be ((two hundred and ninety‑five dollars and fifty cents)) four percent of total tuition fees.

          (((5))) (6) The governing boards of each of the regional universities and The Evergreen State College shall charge to and collect from each student, a services and activities fee.  The governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident undergraduate tuition fees:  PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt.  The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

 

        Sec. 9.  RCW 28B.15.502 and 1992 c 231 s 11 are each amended to read as follows:

          Minimum and maximum tuition fees and maximum services and activities fees at each community college for other than the summer term shall be set by the state board for community and technical colleges as follows:

          (1) For full-time resident students, the maximum total tuition fees shall be twenty‑three percent of the per student educational costs at the community colleges computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be ((one hundred and twenty‑seven dollars and fifty cents)) fifteen percent of tuition fees.

          (2) For full-time nonresident students, the minimum total tuition fees shall be one hundred percent of the per student educational costs at the community colleges computed as provided in RCW 28B.15.067 and 28B.15.070:  PROVIDED, That the building fees for each academic year shall be ((four hundred and three dollars and fifty cents)) eleven percent of tuition fees.

          (3) The governing boards of each of the state community colleges shall charge to and collect from each student a services and activities fee.  Each governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident student tuition fees:  PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt.  The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

          (4) Tuition and services and activities fees consistent with subsection (3) of this section shall be set by the state board for community and technical colleges for summer school students unless the community college charges fees in accordance with RCW 28B.15.515.

          Subject to the limitations of RCW 28B.15.910, each governing board may charge such fees for ungraded courses, noncredit courses, community services courses, and self‑supporting courses as it, in its discretion, may determine, consistent with the rules and regulations of the state board for community and technical colleges.

          Before June 30, 1995, no individual waiver program under this section may be reduced by more than twice the percentage reduction required in operating fee foregone revenue from tuition waivers in the biennial state appropriations act.

 

          NEW SECTION.  Sec. 10.  A new section is added to chapter 28B.15 RCW to read as follows:

          It is the intent of the legislature that in making appropriations from the state's general fund to institutions of higher education and to the community colleges as a whole, each appropriation shall conform to the following:

          (1) The appropriation may be reduced by the amount of estimated operating fees revenue collected at the maximum level for resident undergraduate students and the minimum level estimated for all other students, minus obligations under RCW 28B.15.820 and 43.99I.040 and minus the amount of waived operating fees authorized under RCW 28B.15.910;

          (2) The appropriation shall not be reduced by the amount of operating fees revenue collected from students enrolled above the state-funded level, but within the overenrollment limitations, specified in the omnibus biennial operating appropriations act;

          (3) The appropriation shall not be reduced by the amount of operating fees revenue collected as a result of waiving less operating fees revenue than the amounts authorized under RCW 28B.15.910;

          (4) The appropriation shall not be reduced by revenue resulting from operating fee rates being set above the minimum rates established in this chapter, nor shall the appropriation be increased as a result of operating fee rates established below the maximum rates established in this chapter; and

          (5) The general fund--state appropriation shall be adjusted upward or downward as necessary to compensate for the difference between estimated tuition fees revenue and actual tuition fees revenue as reported by the state treasurer.

 

          NEW SECTION.  Sec. 11.  A new section is added to chapter 28B.15 RCW to read as follows:

          For the purpose of charging tuition fees and services and activities fees, in any academic term a full-time undergraduate student is a student registered for ten or more credit hours and a full-time graduate or law student is a student registered for seven or more credit hours.

 

          NEW SECTION.  Sec. 12.  A new section is added to chapter 28B.15 RCW to read as follows:

          It is the intent of the legislature that resident students not be displaced by nonresident students as a result of permitting institutions of higher education to retain operating fees in a local account.  The higher education coordinating board shall annually report to the governor and appropriate legislative committees the number of resident and nonresident students enrolled at each college and university.  The report shall include but need not be limited to enrollment history over time and recommendations for any legislation needed to maintain enrollment opportunities for resident students.

 

        Sec. 13.  RCW 43.88.140 and 1981 c 270 s 9 are each amended to read as follows:

          (1) All appropriations shall lapse at the end of the fiscal period for which the appropriations are made to the extent that they have not been expended or lawfully obligated.

          (2) Appropriations made to any institution of higher education that meet the requirements of section 15 of this act are exempt from subsection (1) of this section.

 

          NEW SECTION.  Sec. 14.  The higher education efficiency account for [institution's name] is created in the custody of the state treasurer.  The account may receive moneys through gifts, grants, or donations to the state for the purposes of the account.  Any state general fund appropriations made to an institution's higher education efficiency account that are unexpended or unencumbered on the last day of any biennium shall be deposited in the account. Expenditures from the account shall be used only in accordance with the plan adopted by the institution's governing board and approved by the higher education coordinating board as required under section 15 of this act.  Only the governing board or its designee may authorize expenditures from the account.  Moneys in the account shall not be expended for promotions, the correction of salary inequities or market disparities, or for salary or enrollment increases above the level set in the biennial appropriations acts.

          No appropriation is required for an expenditure from the account.  The account is not subject to the allotment procedures under chapter 43.88 RCW.  Unexpended and unencumbered moneys that remain in the account at the end of the biennium do not revert to the state general fund, but remain in the account.  However, if the higher education coordinating board has not approved the institution's expenditure plan by the beginning of the next calendar year, moneys in the account revert to the state general fund.

 

          NEW SECTION.  Sec. 15.  A new section is added to chapter 28B.15 RCW to read as follows:

          An institution of higher education that meets the following requirements may retain unexpended state appropriations at the end of a fiscal period.

          (1) Before any funds are expended, (a) the institution's governing board shall adopt an expenditure plan for the funds; and (b) the plan shall be approved by the higher education coordinating board.  The higher education coordinating board may delegate to the state board for community and technical colleges the responsibility to approve plans for community and technical colleges.

          (2) The plan may include, but is not limited to the following types of activities:

          (a) Matching private donations to the distinguished professorship, graduate fellowship, and exceptional faculty awards programs;

          (b) Recruiting and retaining underrepresented minorities and students with disabilities;

          (c) Providing financial aid to needy students;

          (d) Enhancing instructional quality; and

          (e) Participating in collaborative efforts with other educational sectors.

 

          NEW SECTION.  Sec. 16.  It is the intent of the legislature to restructure and fully fund the state's system of financial aid.  The restructured financial aid system shall be known as college promise.

 

          NEW SECTION.  Sec. 17.  (1) The higher education coordinating board shall restructure the state's financial aid programs into a comprehensive and coordinated system of assistance known as college promise.  College promise shall expand and modify three existing programs for needy students:  The state need grant program under RCW 28B.10.790 through 28B.10.824; the state work study program under chapter 28B.12 RCW; and the educational opportunity grant program under chapter 28B.101 RCW.  In addition, college promise may include a demonstration project to assist needy students whose parents did not attend an institution of higher education.  College promise shall be implemented beginning in the 1995-96 academic year.

          (2) By January 1, 1994, the higher education coordinating board, in consultation with the house of representatives and senate higher education and fiscal committees, and the institutions of higher education, shall develop a detailed implementation plan for college promise.  In preparing the plan, the board shall follow the goals and priorities set forth in sections 18 and 19 of this act.  The plan shall include, but not be limited to:

          (a) Specific program eligibility measures and application procedures for the new populations of state financial aid recipients identified in section 19 of this act;

          (b) Specific need analysis criteria and asset protection allowances;

          (c) Estimates of how many state residents, both those who are currently enrolled in a college or university, and those not currently enrolled, would be eligible and would apply for aid under the expanded eligibility criteria identified in section 19 of this act.  The estimates, developed in consultation with the office of financial management, the office of the superintendent of public instruction, and other agencies as appropriate, shall take into account state economic and demographic factors and information obtained through a survey of potential new aid applicants;

          (d) Estimates of where the new aid applicants identified under (c) of this subsection would choose to enroll by type of institution and level of program; and         

          (e) Estimates of the costs for each state financial aid program, including the state need grant program under RCW 28B.10.790 through 28B.10.824; the state work study program under chapter 28B.12 RCW; and the educational opportunity grant program under chapter 28B.101 RCW to accommodate any new aid applicants estimated under (c) of this subsection, as offset by nonstate sources of aid.  Separate cost estimates shall be made for each of the new aid populations identified under section 19 of this act;

          (3) The cost estimates completed under subsection (2) of this section shall be the basis for determining funding levels for state financial aid programs for each year of the 1995-97 biennium.

          (4) The methodologies used to estimate costs under subsection (2) of this section shall be used for the annual cost estimates required under section 20 of this act.

          (5) The plan completed under subsection (2) of this section shall be deemed approved on June 30, 1994, unless legislation is enacted to alter the policies set forth in the plan.  The board shall also propose to the legislature any changes to the laws governing state financial aid programs that it deems necessary to accomplish the purposes of college promise.

 

          NEW SECTION.  Sec. 18.  In restructuring the state's financial aid programs, the higher education coordinating board shall follow these funding goals:

          (1) For all need-based financial aid programs under RCW 28B.10.790 through 28B.10.824 and chapters 28B.12 and 28B.101 RCW:

          (a) Through a mix of federal, state, and other resources:

          (i) Limit student debt to no more than one-half of a student's cost of attendance; and

          (ii) Provide more self-help opportunities than grant aid to middle-income students, and approximately equal amounts of self-help opportunities and grant aid to low-income and lower middle-income students.  Self-help opportunities include work study and loans;

          (b) In determining eligibility for state financial aid programs, shelter home equity on a family's principal place of residence, and shelter a reasonable portion of savings and farm or business net worth, each insofar as is permissible under state and federal law;

          (c) Simplify the financial aid application process for low-income students with limited assets;

          (d) Strive to preserve a range of educational options for needy students, including choice of institutions and programs;

          (e) Recognize otherwise unfunded equipment and assistance needed to accommodate students with disabilities reasonably; and

          (f) Deliver clear and timely information to current and future postsecondary students about the costs of attending college and available financial aid.

          (2) For the state need grant program under RCW 28B.10.790 through 28B.10.824:  As funds are available, expand the program to include new populations of resident students in the following priority order, ensuring that undergraduate students with the most demonstrated financial need receive full grants before less needy students receive any grant:

          (a) Low-income undergraduates;

          (b) Lower middle-income undergraduates;

          (c) Middle-income undergraduates; and

          (d) Resident graduate and professional students, following the income priorities established for undergraduate students.

          (3) For the state work study program under chapter 28B.12 RCW:  Increase employment opportunities including off-campus job opportunities with community service employers.

          (4) For students whose parents did not attend college:  Determine the feasibility of providing grants to needy first generation scholars.

 

          NEW SECTION.  Sec. 19.  In implementing the goals for expanding financial aid to needy undergraduate students, the board shall be guided by the following matrix.  The matrix defines income levels, and for each level, specifies the application requirement, the funding priority, and the assistance mix goal.  Income levels shall be adjusted annually for family size and changes in the state's median income.

 

                                                  Goals for Funding Needy Undergraduate Students

 

Classification:        Low-income        Lower middle-income        Middle-income

 

Family

Income:                            0-$20,864                       $20,865-$31,296   $31,297-$52,160

(1991 Dollars)

 

Percentage                         Fifty percent       Fifty-one to                   Seventy-six

of State                                                                seventy-five                    to one hundred

Median                                                                 percent                          twenty-five

Income:                                                                                                                percent

 

Aid                         May qualify for   Full need                    Full need           Application:  simplified form   analysis                 analysis

                                                                            required                                    required

 

Priority for

Receiving

Grants:                             First                  Second                          Third

 

Assistance             One-half             One-half                                    Up to one-third

Mix:                     grants                grants                           grants

 

Goal:                    One-half             One-half                                    Two-thirds

                                       work study          work study                     work study

                                       and loans                       and loans                      and loans

 

          NEW SECTION.  Sec. 20.  By September 1st of each even-numbered year, the higher education coordinating board shall adopt an estimate of the amount of funding, annualized for each fiscal year, that will be needed during the ensuing biennium to fully fund each of the state's student financial aid programs under RCW 28B.10.210 through 28B.10.220, 28B.10.790 through 28B.10.824, chapters 28B.12, 28B.101, and 28B.102 RCW, and, if funded, the first generation scholars demonstration project.  The board shall report its findings to the governor, and the house of representatives and senate fiscal and higher education committees.

 

          NEW SECTION.  Sec. 21.  In administering the state student financial aid program, also known as the state need grant program, under RCW 28B.10.790 through 28B.10.824, the higher education coordinating board shall proceed substantially as follows unless it determines that a modification is required in order to conform with federal law or to improve the administration of the program, consistent with the purposes of this chapter.

          (1) Define and assist additional populations of needy students as funding becomes available, in the priorities described in section 18 of this act, and using income level classification definitions as described in section 19 of this act.

          (2) In calculating eligibility for aid, where not otherwise inconsistent with federal or state law, shelter home equity on a family's principal place of residence and shelter a reasonable amount of savings and a reasonable portion of farm or business net worth, in order to equitably evaluate family ability to pay.

          (3) To the extent feasible, adjust the student budget of a needy student with disabilities to reflect otherwise unfunded equipment or assistance needed to reasonably accommodate the student in a postsecondary education or training program.

 

        Sec. 22.  RCW 28B.101.040 and 1990 c 288 s 6 are each amended to read as follows:

          Grants may be used by eligible participants to attend any public or private college or university in the state of Washington that is accredited by an accrediting association recognized by rule of the higher education coordinating board and that has an existing unused capacity.  Grants shall not be used to attend any branch campus or educational program established under chapter 28B.45 RCW.  The participant shall not be eligible for a grant if it will be used for any programs that include religious worship, exercise, or instruction or to pursue a degree in theology.  Each participating student may receive up to two thousand five hundred dollars per academic year, not to exceed the student's demonstrated financial need for the course of study.

 

          NEW SECTION.  Sec. 23.  A new section is added to chapter 28B.80 RCW to read as follows:

          With the exception of institutions of higher education as defined in RCW 28B.10.016, any institution of postsecondary education that enrolls students receiving state-funded financial aid shall:  (1) For Washington residents, match the total amount of the state financial aid funds received by all enrolled students at that institution with an equal amount of institutionally raised grant funds from private sources, and (2) enter into new or honor existing transfer agreements with institutions of higher education as defined in RCW 28B.10.016.  The higher education coordinating board shall adopt rules to implement these requirements.  The rules shall ensure that all institutional matching grant funds go to students who are needy as defined in RCW 28B.10.802(3) and who are residents of the state of Washington.  "Residents of the state of Washington" means that the students would be eligible to pay resident tuition rates under RCW 28B.15.011 through 28B.15.013 if they were enrolled at a state institution of higher education as defined in RCW 28B.10.016.

 

        Sec. 24.  RCW 28B.12.040 and 1985 c 370 s 58 are each amended to read as follows:

          The higher education coordinating board shall develop and administer the college work-study program and shall be authorized to enter into agreements with employers and eligible institutions for the operation of the program.  These agreements shall include such provisions as the higher education coordinating board may deem necessary or appropriate to carry out the purposes of this chapter.

          With the exception of off-campus community service placements, the share from ((funds)) moneys disbursed under the college work-study program of the compensation of students employed under such program in accordance with such agreements shall not exceed eighty percent of the total such compensation paid such students.

          By rule, the board shall define community service placements and may determine any salary matching requirements for any community service employers.

 

          NEW SECTION.  Sec. 25.  A new section is added to chapter 28B.80 RCW to read as follows:

          The higher education coordinating board may design a demonstration project to assist needy first generation college students to obtain either a community or technical college degree or certificate, or a baccalaureate degree.  Through the project, a needy student, as defined in RCW 28B.10.802(3), who attends a Washington institution of higher education that is accredited by an accrediting association recognized by the board by rule, and whose parents did not attend an institution of higher education, may receive a grant of up to fifteen hundred dollars per year, not to exceed the student's documented need.  The grant may be renewable each year, if the student makes satisfactory academic progress.  Grants awarded to any one student shall not exceed a cumulative total of nine thousand dollars for an individual pursuing a baccalaureate degree or five thousand dollars for a student pursuing a community or technical college degree or certificate.  Before seeking funding for the program, the board shall submit to the governor and the legislature a plan for implementing the project.  The plan shall include a provision for verification of student eligibility to participate in the demonstration project.

 

          NEW SECTION.  Sec. 26.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

 

          NEW SECTION.  Sec. 27.  The sum of one hundred twenty thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund to the higher education coordinating board, for the biennium ending June 30, 1995, to complete the plan required under section 17 of this act.

 

          NEW SECTION.  Sec. 28.  Sections 16 through 21 of this act are each added to chapter 28B.10 RCW.

 


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