HOUSE BILL REPORT
HB 650
BYRepresentatives Braddock and Sanders
Establishing the tuition endowment fund.
House Committe on Higher Education
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (12)
Signed by Representatives Jacobsen, Chair; Heavey, Vice Chair; Allen, Barnes, Basich, Jesernig, Nelson, Prince, Silver, Unsoeld, K. Wilson and Wineberry.
House Staff:Susan Hosch (786-7120)
AS REPORTED BY COMMITTEE ON HIGHER EDUCATION FEBRUARY 24, 1987
BACKGROUND:
Presently, the state funds student financial aid programs through state general fund appropriations. The first state sponsored financial aid programs were directed to all needy students. Beginning with the adoption of the Math Science Teacher loan program in 1983, the Legislature began to target aid funds. The loan program was adopted to encourage students to become teachers in subject areas where a high need existed.
In the 1985 session of the Legislature, the Temporary Committee on Educational Policies, Structure and Management recommended that the state target financial aid funds to specific student groups. Although the Legislature did not endorse the Committee's recommended legislation, a budget proviso was adopted which directed the Council for Postsecondary Education to provide financial assistance to the core of students with extremely high unmet need. This proviso targeted funds toward a student population which the Council had identified as being underserved by current assistance programs.
SUMMARY:
SUBSTITUTE BILL: The tuition endowment fund program is created to provide students from low-income families with an incentive to complete a high school and college education. Eligible students may have their tuition and services and activities fees paid at state institutions of higher education. Payments may be made for a maximum of four academic years during five consecutive calendar years.
A student is eligible for tuition from the fund if he or she meets institutional admission standards, has been accepted by an institution and is a state resident. The student must apply for the program after the eighth grade, but before the beginning of the eleventh grade, and at the time of application, the student's family must meet Department of Social and Health Services income assistance eligibility criteria.
The Higher Education Coordinating Board is directed to administer the program. The Board shall adopt rules and make payments to the institution where the student is attending school. The rules shall ensure that eligible students will be accepted in the order that applications have been received, as funds are available.
The program will be funded by private contributions, federal grants and funds appropriated by the Legislature. Moneys in the trust will be administered and invested by the State Treasurer, and will be disbursed at the direction of the Higher Education Coordinating Board.
The tuition endowment fund is subject to the Office of Financial Management allotment procedure, but no appropriation is required for disbursements.
Educational institutions shall transmit any refunds of tuition from participating students back to the endowment fund.
After consulting with the Higher Education Coordinating Board, the Governor may transfer the program to another agency with an appropriate educational mission.
SUBSTITUTE BILL COMPARED TO ORIGINAL: The program will not be funded by the proceeds of a sale of $5,000,000 of general obligation bonds, private donations and federal grants. Instead, the program will be funded through legislative appropriations, federal grants and private donations. The Governor may transfer the program to another educational agency after consulting with the Higher Education Coordinating Board.
Fiscal Note: Requested February 20, 1987
House Committee ‑ Testified For: Jim Sullivan, Washington Student Lobby.
House Committee - Testified Against: None Presented.
House Committee - Testimony For: The Student Lobby favors student aid programs.
House Committee - Testimony Against: None Presented.