SENATE BILL REPORT

SB 5044

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Majority Report: That Substitute Senate Bill No. 5044 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

Signed by Senators Kilmer, Chair; Jarrett, Vice Chair; Becker, Ranking Minority Member; Jacobsen, Kastama, McAuliffe, Pflug, Shin and Stevens.

Background: State work-study was created by the Legislature in 1974. It was designed as a broad access program providing work experiences to needy students. Students are able to reduce their debt burden while they strengthen their resumes, explore careers, and gain work experience. Washington businesses potentially benefit by being able to preview potential future employees at a reduced labor cost (35 percent of wages). The state work-study program forecasting model projects that 9,549 students will use state work-study during the 2008-09 academic year. For the purposes of state work-study, a "needy student" is a student enrolled or accepted for enrollment at a post-secondary institution who, according to a system of need analysis approved by the Higher Education Coordinating Board (HECB), demonstrates a financial inability to bear the total cost of education for any semester or quarter. Needy students who are Washington residents, who are former foster youth, who are using their work-study in fields related to their academic and vocational pursuits, and who are seeking off-campus community service placements, are given priority to receive state work-study.

Summary of Bill (Recommended Substitute): The proportion of state work study subsidy expended on nonresident students is limited to 15 percent or a lesser amount if specified in the Biennial Appropriations Act. The HECB must establish rules encouraging job placements in high demand fields.

EFFECT OF CHANGES MADE BY HIGHER EDUCATION & WORKFORCE DEVELOPMENT COMMITTEE (Recommended Substitute): The ability of nonresident students to get state work-study is restored, but the proportion of state subsidy expended on nonresident students is limited. The HECB is directed to establish rules encouraging job placements in high demand fields including international trade and international relations. In the original bill priority was given to job placements in high employer demand fields related to the student's academic or vocational pursuits, with an emphasis on off-campus placements.

Staff Summary of Public Testimony on Original Bill: PRO: The purpose of the bill is to increase the availability of work study for Washington students and to give students experiences in high demand fields. Employers in high demand fields are looking for ways to increase internship possibilities.

CON: The program is working well now, so why change it? Nonresident students going to school here are no less effective at contributing to Washington's economy. This would cause a significant reduction in work study availability at private colleges in Washington.

OTHER: Terminating nonresident work study opportunities would be a significant policy shift. Many current students receiving work study would no longer be eligible. Colleges along border counties would like an exception to the resident requirement to facilitate cross-border educational opportunities. A lot of quality work is done on-campus using work study students, especially in smaller communities. Many nonresident students subsequently choose to remain in Washington.

Persons Testifying: PRO: Senator Kilmer, prime sponsor; Scott Copeland, SBCTC.

CON: Greg Scheiderer, Independent Colleges of Washington; Kathleen Koch, Janet Carleton, Seattle University, WFAA.

OTHER: John Klacik, HECB; Julie Suchanek, TESC; Steve DuPont, CWU student; David Parsons, UAW 4121.