BILL REQ. #:  H-1140.6 

Read first time 03/09/09.   Referred to Committee on Higher Education.

     AN ACT Relating to creating opportunity grant programs at four-year institutions of higher education; amending RCW 28B.15.067 and 28B.15.068; adding a new section to chapter 28B.20 RCW; adding a new section to chapter 28B.30 RCW; adding a new section to chapter 28B.35 RCW; adding a new section to chapter 28B.40 RCW; and creating new sections.

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

NEW SECTION.  Sec. 1   The legislature finds that providing access to a high-quality postsecondary education is a duty of the state and that providing and promoting that access is a shared responsibility among the state, students, and the public colleges and universities. However, access and affordability for middle-income students have eroded in recent years; therefore, the higher education system must fundamentally change and improve to better meet the needs of students.
     The legislature finds that despite current financial aid programs, the rapid rise in the cost of textbooks, tuition, fees, living expenses, transportation, and other expenses combine to put the total cost of attendance out of reach for many middle and lower-income students and families.
     The legislature further finds that under the current system middle-income families are running out of options and are forced to either shoulder these costs themselves or be priced out of higher education entirely. As a result, middle-income debt loads are surging, causing families to make painful career and family choices in order to ensure access to educational opportunity.
     The legislature recognizes that states with higher tuition rates have been shown to effectively use those resources to provide substantial and incremental financial aid to lower and middle-income students.
     State taxes currently subsidize all students attending Washington public colleges and universities. As a result, upper-income families view the institution as a relative bargain among premier public and private universities around the world. On the other hand, the total cost of attendance has become unaffordable in the context of middle-income families' means. Compounding this crisis is the lack of available financial aid outside of loans specifically targeted to the middle class.
     It is for these reasons that the legislature intends to design a college affordability program that systemically addresses these issues for middle-income families to afford a college education. The legislature intends to empower the four-year institutions of higher education to raise tuition during a six-year period and target a portion of the new revenue to those middle-income students who would not otherwise qualify for state financial aid.

NEW SECTION.  Sec. 2   A new section is added to chapter 28B.20 RCW to read as follows:
     (1) The University of Washington opportunity grant program is hereby established at the University of Washington.
     (2) The program shall be administered by the University of Washington.
     (3) Eligibility for the program shall be limited to resident undergraduate students with family incomes of up to one hundred twenty-five percent of the state median family income, adjusted for family size.
     (4) The University of Washington opportunity grant program is supplemental to the state need grant program, as defined in chapter 28B.92 RCW, and intended to provide financial assistance to middle-income students with incomes up to one hundred twenty-five percent of state median family income adjusted for family size.
     (5) In administering the program, the university shall:
     (a) Adopt necessary rules and guidelines;
     (b) Establish eligibility requirements and select program participants;
     (c) Base award amounts on the assessment of the student's ability to pay the cost of attendance using the federal student financial aid needs assessment process and such other evaluation procedures and criteria the university may adopt. Award amounts shall be prorated as family income increases, based on a percentage of the maximum base grant award amount of the state need grant, as determined by the higher education coordinating board for the state universities.
     (i) Students with a family income that exceeds the income eligibility criteria for state need grant and is less than or equal to one hundred percent of state median family income shall receive forty percent of the maximum state need grant award amount;
     (ii) Students with a family income between one hundred one and one hundred twenty-five percent of state median family income shall receive twenty-five percent of the maximum state need grant award amount;
     (d) Publicize the program; and
     (e) Solicit and accept grants, gifts, and donations from public and private sources for the program.

NEW SECTION.  Sec. 3   A new section is added to chapter 28B.30 RCW to read as follows:
     (1) The Washington State University opportunity grant program is hereby established at Washington State University.
     (2) The program shall be administered by Washington State University.
     (3) Eligibility for the program shall be limited to resident undergraduate students with family incomes of up to one hundred twenty-five percent of the state median family income, adjusted for family size.
     (4) The Washington State University opportunity grant program is supplemental to the state need grant program, as defined in chapter 28B.92 RCW, and intended to provide financial assistance to middle-income students with incomes up to one hundred twenty-five percent of state median family income adjusted for family size.
     (5) In administering the program, the university shall:
     (a) Adopt necessary rules and guidelines;
     (b) Establish eligibility requirements and select program participants;
     (c) Base award amounts on the assessment of the student's ability to pay the cost of attendance using the federal student financial aid needs assessment process and such other evaluation procedures and criteria the university may adopt. Award amounts shall be prorated as family income increases, based on a percentage of the maximum base grant award amount of the state need grant, as determined by the higher education coordinating board for the state universities.
     (i) Students with a family income that exceeds the income eligibility criteria for state need grant and is less than or equal to one hundred percent of state median family income shall receive forty percent of the maximum state need grant award amount;
     (ii) Students with a family income between one hundred one and one hundred twenty-five percent of state median family income shall receive twenty-five percent of the maximum state need grant award amount;
     (d) Publicize the program; and
     (e) Solicit and accept grants, gifts, and donations from public and private sources for the program.

NEW SECTION.  Sec. 4   A new section is added to chapter 28B.35 RCW to read as follows:
     (1)(a) The Central Washington University opportunity grant program is hereby established at Central Washington University.
     (b) The Eastern Washington University opportunity grant program is hereby established at Eastern Washington University.
     (c) The Western Washington University opportunity grant program is hereby established at Western Washington University.
     (2) The programs shall be administered by the respective universities.
     (3) Eligibility for the programs shall be limited to resident undergraduate students with family incomes of up to one hundred twenty- five percent of the state median family income, adjusted for family size.
     (4) Each opportunity grant program is supplemental to the state need grant program, as defined in chapter 28B.92 RCW, and intended to provide financial assistance to middle-income students with incomes up to one hundred twenty-five percent of state median family income adjusted for family size.
     (5) In administering the program, each university shall:
     (a) Adopt necessary rules and guidelines;
     (b) Establish eligibility requirements and select program participants;
     (c) Base award amounts on the assessment of the student's ability to pay the cost of attendance using the federal student financial aid needs assessment process and such other evaluation procedures and criteria each university may adopt. Award amounts shall be prorated as family income increases, based on a percentage of the maximum base grant award amount of the state need grant, as determined by the higher education coordinating board for the regional institutions.
     (i) Students with a family income that exceeds the income eligibility criteria for state need grant and is less than or equal to one hundred percent of state median family income shall receive forty percent of the maximum state need grant award amount;
     (ii) Students with a family income between one hundred one and one hundred twenty-five percent of state median family income shall receive twenty-five percent of the maximum state need grant award amount;
     (d) Publicize the program; and
     (e) Solicit and accept grants, gifts, and donations from public and private sources for the program.

NEW SECTION.  Sec. 5   A new section is added to chapter 28B.40 RCW to read as follows:
     (1) The Evergreen State College opportunity grant program is hereby established at The Evergreen State College.
     (2) The program shall be administered by The Evergreen State College.
     (3) Eligibility for the program shall be limited to resident undergraduate students with family incomes of up to one hundred twenty- five percent of the state median family income, adjusted for family size.
     (4) The Evergreen State College opportunity grant program is supplemental to the state need grant program, as defined in chapter 28B.92 RCW, and intended to provide financial assistance to middle-income students with incomes up to one hundred twenty-five percent of state median family income adjusted for family size.
     (5) In administering the program, the college shall:
     (a) Adopt necessary rules and guidelines;
     (b) Establish eligibility requirements and select program participants;
     (c) Base award amounts on the assessment of the student's ability to pay the cost of attendance using the federal student financial aid needs assessment process and such other evaluation procedures and criteria the college may adopt. Award amounts shall be prorated as family income increases, based on a percentage of the maximum base grant award amount of the state need grant, as determined by the higher education coordinating board for The Evergreen State College.
     (i) Students with a family income that exceeds the income eligibility criteria for state need grant and is less than or equal to one hundred percent of state median family income shall receive forty percent of the maximum state need grant award amount;
     (ii) Students with a family income between one hundred one and one hundred twenty-five percent of state median family income shall receive twenty-five percent of the maximum state need grant award amount;
     (d) Publicize the program; and
     (e) Solicit and accept grants, gifts, and donations from public and private sources for the program.

Sec. 6   RCW 28B.15.067 and 2007 c 355 s 7 are each amended to read as follows:
     (1) Tuition fees shall be established under the provisions of this chapter.
     (2) Beginning with the ((2003-04)) 2009-10 academic year and ending with the ((2008-09)) 2014-15 academic year, reductions or increases in full-time tuition fees for ((resident undergraduates)) all students shall be ((as provided in the omnibus appropriations act)) determined by the governing boards of the state universities, the regional universities, and The Evergreen State College.
     (3) Beginning with the 2009-10 academic year and ending with the 2014-15 academic year, reductions or increases in full-time tuition fees for resident undergraduates attending community or technical colleges shall be as provided in the omnibus appropriations act.
     (4) Beginning with the ((2003-04)) 2009-10 academic year and ending with the ((2008-09)) 2014-15 academic year, ((the governing boards of the state universities, the regional universities, The Evergreen State College, and)) the state board for community and technical colleges may reduce or increase full-time tuition fees for all students other than resident undergraduates, including summer school students and students in other self-supporting degree programs. Percentage increases in full-time tuition fees may exceed the fiscal growth factor. Reductions or increases may be made for all or portions of an institution's programs, campuses, courses, or students.
     (((4))) (5) Academic year tuition for full-time students at the state's institutions of higher education beginning with ((2009-10)) 2015-16, other than summer term, shall be as charged during the ((2008-09)) 2014-15 academic year unless different rates are adopted by the legislature.
     (((5))) (6) The tuition fees established under this chapter shall not apply to high school students enrolling in participating institutions of higher education under RCW 28A.600.300 through 28A.600.400.
     (((6))) (7) The tuition fees established under this chapter shall not apply to eligible students enrolling in a community or technical college under RCW 28C.04.610.
     (((7))) (8) The tuition fees established under this chapter shall not apply to eligible students enrolling in a community or technical college participating in the pilot program under RCW 28B.50.534 for the purpose of obtaining a high school diploma.
     (((8))) (9) For the academic years ((2003-04)) 2009-10 through ((2008-09)) 2014-15, the University of Washington shall use an amount equivalent to ten percent of all revenues received as a result of law school tuition increases beginning in academic year ((2000-01)) 2009-10 through academic year ((2008-09)) 2014-15 to assist needy low and middle income resident law students.
     (((9))) (10) For the academic years ((2003-04)) 2009-10 through ((2008-09)) 2014-15, institutions of higher education shall use an amount equivalent to ten percent of all revenues received as a result of graduate academic school tuition increases beginning in academic year ((2003-04)) 2009-10 through academic year ((2008-09)) 2014-15 to assist needy low and middle-income resident graduate academic students.

Sec. 7   RCW 28B.15.068 and 2007 c 151 s 1 are each amended to read as follows:
     (1) Beginning with the 2007-08 academic year and ending with the 2016-17 academic year, tuition fees charged to full-time resident undergraduate students may increase no greater than ((seven)) twelve percent over the previous academic year in any institution of higher education. ((Annual reductions or increases in full-time tuition fees for resident undergraduate students shall be as provided in the omnibus appropriations act, within the seven percent increase limit established in this section.)) To the extent that state appropriations combined with tuition and fee revenues are insufficient to achieve the total per-student funding goals established in subsection (2) of this section, the legislature may revisit state appropriations, authorized enrollment levels, and changes in tuition fees for any given fiscal year.
     (2) The state shall adopt as its goal total per-student funding levels, from state appropriations plus tuition and fees, of at least the sixtieth percentile of total per-student funding at similar public institutions of higher education in the global challenge states. In defining comparable per-student funding levels, the office of financial management shall adjust for regional cost-of-living differences; for differences in program offerings and in the relative mix of lower division, upper division, and graduate students; and for accounting and reporting differences among the comparison institutions. The office of financial management shall develop a funding trajectory for each four-year institution of higher education and for the community and technical college system as a whole that when combined with tuition and fees revenue allows the state to achieve its funding goal for each four-year institution and the community and technical college system as a whole no later than fiscal year 2017. The state shall not reduce enrollment levels below fiscal year 2007 budgeted levels in order to improve or alter the per-student funding amount at any four-year institution of higher education or the community and technical college system as a whole. The state recognizes that each four-year institution of higher education and the community and technical college system as a whole have different funding requirements to achieve desired performance levels, and that increases to the total per-student funding amount may need to exceed the minimum funding goal.
     (3) By September 1st of each year beginning (([in])) in 2008, the office of financial management shall report to the governor, the higher education coordinating board, and appropriate committees of the legislature with updated estimates of the total per-student funding level that represents the sixtieth percentile of funding for comparable institutions of higher education in the global challenge states, and the progress toward that goal that was made for each of the public institutions of higher education.
     (4) As used in this section, "global challenge states" are the top performing states on the new economy index published by the progressive policy institute as of July 22, 2007. The new economy index ranks states on indicators of their potential to compete in the new economy. At least once every five years, the office of financial management shall determine if changes to the list of global challenge states are appropriate. The office of financial management shall report its findings to the governor and the legislature.

NEW SECTION.  Sec. 8   The Washington state institute for public policy shall evaluate the effects of this change in tuition policy and financial aid created by this act, recommend alternatives for the guaranteed education tuition program, and deliver its findings to the governor and appropriate committees of the legislature by December 2012.