HOUSE BILL REPORT

HB 857

BYRepresentatives Hine, Jacobsen, Ebersole, Allen, Prince, Unsoeld, Miller, Basich and Todd

Creating a future teachers conditional scholarship program.

House Committe on Higher Education

Majority Report: Do pass. (12)

Signed by Representatives Jacobsen, Chair; Heavey, Vice Chair; Allen, Barnes, Basich, Jesernig, Miller, Nelson, Prince, Silver, Unsoeld and K. Wilson.

House Staff:Susan Hosch (786-7120)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (19)

Majority Report: Representatives Locke, Chair; Allen, Braddock, Brekke, Bristow, Ebersole, Grant, Grimm, Hine, Holland, McMullen, Nealey, Niemi, Peery, Sayan, Silver, H. Sommers, Sprenkle and B. Williams.

Minority Report: Do not pass. (3)

Signed by Representatives Belcher, Fuhrman and McLean.

House Staff: Bill Robinson (786-7142)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS

MARCH 9, 1987

BACKGROUND:

Many of the reports of recent years assessing the challenges facing the country's K-12 educational systems, have emphasized a need to recruit academically superior students into the teaching profession. "Right now too many students entering college programs leading to teaching careers are among the lowest achieving graduates of U.S. high schools. We are preparing our poorest students to be our future teachers, and this situation must be changed." This declaration from the Committee for Economic Development was included in A NATION PREPARED, a report on educational reform by the Carnegie Forum on Education and the Economy.

Minorities constitute close to 25 percent of the elementary and secondary student population nationally. The report by the Carnegie Forum found that, "Schools form children's opinions about the larger society and their own futures. The race and background of their teachers tells them something about authority and power in contemporary America. These messages influence children's attitudes toward school, their academic accomplishments, and their views of their own and others' intrinsic worth." The report went on to recommend that the federal government establish a fellowship program for minority students who enroll in professional education programs at the graduate level. In return, recipients would commit themselves to teaching for a fixed period.

The Marshall Plan, a report recommending major changes needed in higher education to prepare this country for the 21st century, recommended reinstituting a student loan forgiveness program for college graduates entering teaching. Such a program would complement the Governor's plan to require that future teachers acquire a master's degree before entering the teaching profession.

Washington already provides an incentive loan program for future math and science teachers. Students receiving loans under this program have the entire loan, with interest, forgiven if they teach math or science in the public schools of this state for ten years.

SUMMARY:

SUBSTITUTE BILL: The legislature finds that encouraging outstanding students to enter the teaching profession is of paramount importance to the state. The legislature intends to help recruit as teachers students who have distinguished themselves through outstanding academic performance and students who can act as role models for children, including those from targeted ethnic minorities, through the creation of a conditional scholarship program.

The future teachers conditional scholarship program is established. Resident students, registered for a minimum of twelve credit hours or the equivalent, with a 3.30 GPA from high school or who achieve and maintain at least a 3.00 grade point average in college, and who have declared an intent to major, or have a declared major in a program leading to a degree in teacher education, are eligible for the program. Eligible students include postgraduate students who completed a baccalaureate degree with a grade point of 3.00 or more if they are pursuing a degree in teacher education.

The Higher Education Coordinating Board will administer the program. The board will establish a planning committee to develop criteria for selecting recipients of the conditional scholarships. These criteria will emphasize excellence through such factors as superior scholastic achievement, leadership ability, community contributions and an ability to act as a role model for targeted ethnic minority students.

The board will select recipients to receive conditional scholarships with the assistance of a screening committee composed of teachers and leaders in government, business, and education. The board will also adopt necessary rules, publicize the program, collect and manage repayments from students who do not meet their teaching obligations, and solicit and accept grants and donations from public and private sources for the program.

The board may make conditional scholarships available to eligible students from donated funds, or from funds appropriated to the Board for that purpose. The amount of the scholarship must not exceed $3,000 or the total amount of tuition and fees charged to a full time undergraduate student annually at a state institution of higher education, whichever is higher. A student is eligible to receive conditional scholarships for a maximum of five years.

Participants in the program incur an obligation to repay the conditional scholarship, with interest, unless they teach for ten years in the public schools of the state. The terms of the repayment, including deferral of the interest, will be consistent with the terms of the federal guaranteed loan program.

The payback period for the conditional scholarship is 10 years, with payments accruing quarterly beginning nine months from the date the participant graduates or discontinues his or her higher education. The principal and interest for each payment will be forgiven for each payment period in which the participant teaches in a state public school. Should the participant stop teaching before his or her obligation is completed, the payments on the unsatisfied portion of the principal and interest will begin during the next payment period and continue until the repayment obligation is satisfied. An interest penalty of 14 percent or the highest interest rate allowed by RCW 19.52.020, whichever is higher, will be accessed to recipients who drop out of teacher training programs.

The board is responsible for the collection, servicing, and forgiveness of the repayments. Any collection of the repayments will be performed by entities approved by the Washington Student Loan Guarantee Association.

Receipts from the repayments will be deposited with the board, and will be used to cover program costs. Any receipts beyond those used to cover program costs will be used to grant additional scholarships.

SPI will administer a program to identify and recruit minority student in grades 9 through 12 for the teaching profession. SPI may also grant funds to institutions of higher education and school district to implement the program.

After consulting with the board, the governor may transfer this program to another agency with an appropriate educational mission.

SUBSTITUTE BILL COMPARED TO ORIGINAL: Eligible students directly out of high school must have a 3.30 GPA. Other students must maintain a 3.00 GPA in graduate or under graduate programs. Fifty percent of the scholarships must be given to financially needy students and no more than 30 percent of the funds may be used for any one class level (freshman, sophomore, junior, senior, and graduate). The loan is totally forgiven if the recipient teaches for 10 years in Washington public schools. An interest penalty of 14 percent or the highest interest rate allowed by RCW 19.52.020, whichever is higher, will be accessed to recipients who drop out of teacher training programs.

CHANGES PROPOSED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS: Substitute proposed.

Fiscal Note: Attached.

House Committee ‑ Testified For: (Higher Education) Representative Lorraine Hine, sponsor; Sandy Wall, Higher Education Coordinating Board; and Jim Sullivan, Washington Student Lobby.

(Ways & Means/Appropriations) None Presented.

House Committee - Testified Against: (Higher Education) None Presented.

(Ways & Means/Appropriations) None Presented.

House Committee - Testimony For: (Higher Education) This program is designed to recruit outstanding students into the teaching profession. It implements recommendations contained in national studies on enhancing excellence in our public school system.

(Ways & Means/Appropriations) None Presented.

House Committee - Testimony Against: (Higher Education) None Presented.

(Ways & Means/Appropriations) None Presented.