SENATE BILL REPORT

SB 5482

BYSenators Patterson and Rinehart

Specifying that a percentage of the increase in tuition and fees funds financial aid for students at public institutions of higher education.

Senate Committee on Education

Senate Hearing Date(s):February 9, 1987; February 12, 1987

Majority Report:  Do pass and refer to Committee on Ways & Means.

      Signed by Senators Gaspard, Chairman; Bauer, Vice Chairman; Rinehart, Vice Chairman; Bailey, Bender, Benitz, Patterson, Smitherman, Warnke.

Senate Staff:Judy McNickle (786-7423)

                  February 12, 1987

AS REPORTED BY COMMITTEE ON EDUCATION, FEBRUARY 12, 1987

BACKGROUND:

In 1977 the Legislature enacted a new section of law which declared its intent that needy students not be deprived of access to higher education due to increases in educational costs or consequent increases in tuition and fees.  Lawmakers agreed that state appropriations for student financial aid should be adjusted whenever tuition and fees were adjusted.  They reasoned that, since 24 percent of the students attending public higher education in 1977 were eligible for financial aid, 24 percent should be related to the total revenue generated by any tuition and fee increases minus estimated financial aid funds from the federal government in the form of Pell Grants (formerly basic educational opportunity grants). Revenue derived from this portion of anticipated tuition and fees paid by students in public higher education has provided financial aid to students enrolled in both public and independent higher education institutions.

In recent years, the Office of Financial Management has calculated the amount of money to be reserved through the 24 percent "set-aside" by subtracting not only anticipated Pell Grant support, but anticipated increased revenues accruing to the 2.5 percent loan program and estimates of increased revenue paid by private employers to the state work study program.

Current estimates also show that the number of students attending public higher education who are eligible to receive financial aid has risen from 24 percent to nearly 40 percent.

SUMMARY:

The amount of revenue generated by tuition and fee adjustments and reserved for student financial aid programs is increased from 24 percent to 33 percent, and funds attributable to these adjustments will be used to provide financial aid only to students enrolled in public institutions of higher education.

Fiscal Note:      available

Senate Committee - Testified: Tom Parker, Washington Friends of Higher Education