FINAL BILL REPORT

2SHB 1640

                                  C 125 L 88

BYHouse Committee on Ways & Means/Appropriations (originally sponsored by Representatives Fox, Jacobsen, Miller, Kremen, Spanel, Heavey, Silver, Nelson, Jesernig, Braddock, Wineberry, Winsley,R. King, Valle, Leonard, Dellwo, Peery, Haugen,H. Sommers, Jones, Wang, Scott,P. King, Basich, Nutley, O'Brien, Hine, Sanders, Sayan, Pruitt, Todd, Lux,K. Wilson, Unsoeld, Betrozoff and Rust)

Establishing the G. Robert Ross public service award program for outstanding public service by faculty.

House Committe on Higher Education

Rereferred House Committee on Ways & Means/Appropriations

Senate Committee on Higher Education and Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

In November 1987 three top officials of Western Washington University were killed in the crash of a chartered plane.  The loss of G. Robert Ross, President; Jeanene DeLille, Vice President for University Advancement; and Don Cole, Vice President for Business devastated the university's students and employees.

Dr. Ross was an exemplary university president who helped to lead his school to a position of increasing excellence and national prominence.  He strongly encouraged the faculty, staff and students at Western Washington University to work together cooperatively to advance the university's goals in the areas of academics, research and public service. Dr. Ross was a convincing spokesperson for excellence in all areas of education, and, during the 1987 session, was a leader in helping convince the Legislature to substantially increase financial support for higher education programs such as the Distinguished Professorship Trust Fund Program. Many legislators and educators believe that establishing a Distinguished Professorship at Western Washington University in Dr. Ross's honor would provide a fitting memorial for this outstanding president.

As families are called upon to meet an increasing portion of higher education costs, many states, including Washington, have considered various forms of educational savings programs.

In 1987 Illinois enacted a college savings bond program under which state general obligation bonds are sold.  Incentives are provided to encourage purchase of the bonds and enrollment in Illinois colleges and universities.  The incentives include authorizing supplemental payments to bondholders to be used for college tuition, excluding $25,000 in bonds when determining state financial aid, and exempting interest on the bonds from the state income tax.  The first bond sale, held in January, 1988, was highly successful.

SUMMARY:

The G. Robert Ross Distinguished Faculty Award is established.  The award will be administered by the governing board of Western Washington University.  The board will adopt guidelines for the selection of award recipients.  The board will also establish and administer a local endowment fund for the deposit of state funds and private donations.  The proceeds of the endowment fund may be used to supplement the salary of the holder of the award, to pay the salaries of his or her assistants, and to pay expenses associated with the holder's scholarly work.

The Distinguished Professorship Trust Fund Program is revised to permit matching funds for the program to be received from a legislative appropriation specifically for the G. Robert Ross Distinguished Faculty Award, and to eliminate the one unassigned professorship from the program.

An appropriation of $250,000 is made for deposit in the G. Robert Ross Distinguished Faculty Endowment Fund.  These moneys are the designated match for the $250,000 allocated for the use of Western Washington University under the Distinguished Professorship Program.  The total of $500,000 will be deposited in the G. Robert Ross Distinguished Faculty Endowment Fund.

The Future Teachers Conditional Scholarship Program includes statutory grade point requirements for scholarship recipients. The Higher Education Coordinating Board is permitted to waive these grade point requirements for an otherwise eligible student under special circumstances.

A College Savings Bond Program is established to help Washington residents obtain a higher education and to encourage financial planning to meet the costs of higher education.

The State Finance Committee is authorized to issue $50 million general obligation bonds for capital improvements at the state higher education institutions, subject to appropriation. The State Finance Committee is given discretion to determine the manner of sale and issuance of the bonds.  However, if the committee determines it is economically feasible and in the best interest of the state, the committee shall sell the bonds at a "deep discount" (meaning the total amount of principal and interest would be payable at maturity).

The Higher Education Coordinating (HEC) Board and the State Finance Committee are directed to create and implement an educational program and marketing strategies to publicize the College Savings Bond Program.

By December, 1990 the State Finance Committee and the HEC Board shall evaluate the effectiveness of the College Savings Bond Program and report to the Legislature and the governor on the program and on any recommended program changes.  The HEC Board shall include in the report a study of the advisability of offering incentives to purchase college savings bonds.

The interest on the bonds is exempt from any state income tax.

VOTES ON FINAL PASSAGE:

      House 93   0

      Senate    46     0(Senate amended)

      House             (House refused to concur)

Free Conference Committee

      Senate    46     0

      House 97   0

EFFECTIVE:June 9, 1988