SENATE BILL REPORT

SB 5461

BYSenators Fleming, Talmadge and Wojahn

Establishing the higher education opportunities program.

Senate Committee on Education

Senate Hearing Date(s):March 5, 1987

Senate Staff:Judy McNickle (786-7423)

AS OF MARCH 5, 1987

BACKGROUND:

Tuition and fees in public higher education institutions are projected to continue increasing, as are costs for room and board. Financial aid is expected to barely keep pace with inflation if cuts currently proposed in Congress by the administration are not adopted.

Among groups most likely to be negatively impacted by rising costs are the same students who currently face the greatest economic difficulties:  single parents of dependent children.  The Higher Education Coordinating (HEC) Board reports that of all student groups, single heads of household have the highest amounts of unmet need because nearly all financial aid programs fail to consider the added expenses and special needs of this group.  None of the programs fully compensate for increased maintenance costs and special daycare expenses single parents must incur in order to attend school.  Most programs award single students without children the same maximum amounts as those awarded to single parents, though expenses incurred by the latter are significantly greater than by the former.

In 1985 the Temporary Committee on Educational Policies, Structure and Management urged the state to reassess its financial aid programs to make sure they are sufficient to meet the needs of Washington students.  The committee also urged the state to pilot test financial aid programs targeted to specific student groups.  Others have argued that since the private sector directly benefits from the availability of an educated workforce, more private dollars should be contributed to the costs of higher education.  Currently, several major Washington corporations provide tuition assistance programs to their employees.

SUMMARY:

The Higher Education Coordinating (HEC) Board is responsible for developing as a pilot program the Washington State and Employers' Higher Education Opportunities Program, which is designed to provide scholarships for low income working persons and single heads of household.  Up to 24 private businesses are selected to provide socially and economically disadvantaged working persons a chance to improve their social and economic status through public higher education opportunities.  The program encourages and permits certain employees to acquire retraining for their present jobs or new training for new careers.  The program also promotes cooperation among the state, private business entities, and public institutions of higher education.

The HEC Board appoints an administrator to coordinate the pilot program and selects three businesses from each Congressional District to participate.  These businesses must be located in Washington state, privately owned, have been in operation for at least three years, and employ at least ten persons.  Businesses which already pay tuition and fee costs for their employees are required to maintain their previous financial commitment to those programs in addition to providing support for this program.

The HEC Board selects 50 employee scholarship winners based on recommendations from their employers.  Scholarship applicants must be state residents who are unrelated to their employers and who work at least 35 hours or more per week (or the equivalent).  The HEC Board develops application procedures and guidelines for their selection and considers at least the following factors:  age, disability, income, number of dependents, family situation, need for retraining or new training, and applicant's potential for success.  Academic qualifications are not the sole criterion, but recipients must have applied or be in the process of applying to their preferred institution.

Two types of scholarships are available:  retraining awards for the equivalent of one academic year of full-time attendance; and new training awards for promotion or career changes for the equivalent of two academic years of full-time attendance.  No scholarships can exceed a total of three years of part-time attendance, and scholarship use is subject to requirements and standards of participating institutions.  Recipients must maintain a minimum cumulative grade point average of 2.5 each quarter or semester unless the HEC Board waives that requirement for a particular student, and persons are limited to receipt of one such scholarship each.

To support these scholarships the institutions waive 50 percent of the cost of tuition and fees for the recipients if the employers provide the remaining 50 percent.

The HEC Board is required to submit a report on the scholarship program to the Legislature by January, 1990.  The HEC Board is allocated $20,000 for the 1987-89 biennium to administer the program, which takes effect immediately and expires on June 30, 1989.

Appropriation:    $20,000 to Higher Education Coordinating Board

Fiscal Note:      none requested