SENATE BILL REPORT

                   SB 6076

              As Passed Senate, February 11, 1998

Title:  An act relating to needy student financial aid.

Brief Description:  Changing the adjustment of state appropriations for needy student financial aid.

Sponsors:  Senators West, Wood, Bauer, Anderson, Kohl, Long, Spanel, Swecker, Finkbeiner, Winsley, Hale, Horn and Hochstatter.

Brief History:

Committee Activity:  Ways & Means:  3/26/97, 3/27/97 [DP].

Passed Senate, 2/11/98, 42-1.

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass.

  Signed by Senators West, Chair; Deccio, Vice Chair; Strannigan, Vice Chair; Bauer, Brown, Fraser, Hochstatter, Kohl, Long, Loveland, McDonald, Roach, Rossi, Sheldon, Snyder, Spanel, Thibaudeau, Winsley and Zarelli.

Staff:  Michael Groesch (786-7434)

Background:  Since 1977, funding for state financial aid programs has been guided by legislative intent language in statute.  The language indicates that an amount that equals or exceeds 24 percent of the revenue from tuition increases at public colleges and universities should be added to financial aid programs funded from the general fund.

At the time the 24 percent intent language was adopted, about 24 percent of the full-time students attending the public colleges and universities were receiving financial aid.  In 1992, that percentage was about 38 percent.  The percentage climbed to more than 40 percent when full-time resident students at private institutions were included.  With the revision of federal financial aid eligibility requirements, the percentage of students receiving assistance is expected to continue to climb.

Summary of Bill:  The state appropriation for student financial aid is 30 percent of any change in revenue estimated to occur as a result of increase in tuition and fees through legislative action.

Appropriation:  None.

Fiscal Note:  Requested on March 26, 1997.

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

Testimony For:  This is an important bill for students and a strong commitment to future funding of financial aid.

Testimony Against:  None.

Testified:  Keith Boyd, WA Student Lobby (pro); Susan Patrick, Higher Education Coordinating Board (pro).