SENATE BILL REPORT

                   SB 5198

              As Reported By Senate Committee On:

              Higher Education, February 13, 1997

Title:  An act relating to financial aid account flexibility between state work study and state need grant programs.

Brief Description:  Authorizing the higher education coordinating board to transfer moneys between the state work study program and the state need grant program.

Sponsors:  Senators Wood, Kohl, Winsley, Bauer, Hale, Sheldon, Horn and Oke; by request of Higher Education Coordinating Board.

Brief History:

Committee Activity:  Higher Education:  1/30/97, 2/13/97 [DP-WM].

SENATE COMMITTEE ON HIGHER EDUCATION

Majority Report:  Do pass and be referred to Committee on Ways & Means.

  Signed by Senators Wood, Chair; Winsley, Vice Chair; Bauer, Kohl, Patterson, Prince and Sheldon.

Staff:  Jennifer Hanlon (786-7784)

Background:  The Higher Education Coordinating Board must administer any state or state-administered federal program of student financial aid.  The board administers both the State Work Study and the State Need Grant programs.  Currently, the board may not transfer funds between the Work Study and Need Grant accounts.

Summary of Bill:  The Higher Education Coordinating Board determines whether the funds appropriated to the State Work Study and the State Need Grant accounts can be spent within the individual program by the end of the fiscal period.  If not, the board may transfer up to 1 percent of the combined appropriation for the work study and need grant programs between the separate appropriations for these programs.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This change is a management tool.  The HECB will always try to fulfill legislative guidelines before transferring funds.

Testimony Against:  None.

Testified:  Susan Patrick, HECB.