SENATE BILL REPORT

SHB 857

BYHouse Committee on Ways & Means/Appropriations (originally sponsored by Representatives Hine, Jacobsen, Ebersole, Allen, Prince, Unsoeld, Miller, Basich and Todd)

Creating a future teachers conditional scholarship program.

House Committe on Higher Education

Rereferred House Committee on Ways & Means/Appropriations

Senate Committee on Education

Senate Hearing Date(s):April 2, 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, Smitherman, Warnke.

Senate Staff:Judy McNickle (786-7423)

                April 2, 1987

Senate Committee on Ways & Means

Senate Hearing Date(s):April 6, 1987

Majority Report:     Do pass as amended.

     Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bluechel, Deccio, Fleming, Hayner, Kreidler, Lee, McDonald, Moore, Owen, Rinehart, Saling, Talmadge, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Fred Romero (786-7715)

                April 7, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, APRIL 6, 1987

BACKGROUND:

Many recent national reports have emphasized the need to recruit academically superior students into the teaching profession.  "A Nation Prepared," a study on educational reform by the Carnegie Forum on Education and the Economy, urged immediate action to attract better students to teaching and encourage more minority students to consider teaching careers.  Another recent report, "The Marshall Plan" published by the American Association of State Colleges and Universities, recommended reinstituting a student loan program for future teachers.  A new in-state report, released by the Office of the Superintendent of Public Instruction this month, predicts a significant teacher shortage in Washington within the next decade.

In 1983 the state initiated an incentive loan program for future math and science teachers.  Students receiving loans under this program have the entire loan, including interest, forgiven if they teach math or science in Washington public junior high, middle or high schools for ten years.

SUMMARY:

The Legislature finds that encouraging outstanding students to enter the teaching profession is of paramount importance to the state.  The Legislature intends to help recruit as teachers students who have distinguished themselves through outstanding academic performance and students who can act as role models for children, including those from targeted ethnic minorities, through creation of a conditional scholarship program.

The future teachers conditional scholarship program is established.  To be eligible for the program, students must be state residents, registered for a minimum of twelve credit hours or the equivalent, and must have maintained a 3.30 grade point average from high school or achieved and maintained at least a 3.00 grade point average in college.  In addition, eligibility depends on having declared an intent to major, or having a declared major in a program leading to a degree in teacher education.  Students who have completed a baccalaureate degree and are pursuing a degree in teacher education are also eligible.

The Higher Education Coordinating Board administers the program.  The Board establishes a planning committee to develop criteria for selecting recipients of the conditional scholarships.  These criteria will emphasize excellence through such factors as superior scholastic achievement, leadership ability, community contributions, and an ability to act as a role model for targeted ethnic minority students.

The Board selects recipients of conditional scholarships with assistance from a screening committee composed of teachers and leaders in government, business, and education.  The Board also adopts necessary rules, publicizes the program, collects and manages repayments from students who do not meet their teaching obligations, and solicits and accepts grants and donations from public and private sources for the program.

The Board may make conditional scholarships available to eligible students from donated funds, or from funds appropriated to the Board for that purpose.  At least 50 percent of the available funds will be awarded to students who are financially needy.  No more than 30 percent of the funds will be awarded to students in any one academic level.  The amount of the scholarship must not exceed $3,000 or the total amount of tuition and fees charged to a full time undergraduate student annually at a state institution of higher education, whichever is higher.  A student is eligible to receive conditional scholarships for a maximum of five years.

Participants in the program incur an obligation to repay the conditional scholarship, with interest, unless they teach for ten years in the public schools of the state.  Terms of repayment, including deferral of interest, will be consistent with terms of the federal guaranteed loan program.

The repayment period for conditional scholarships is 10 years, with payments accruing quarterly beginning nine months from the date the participant graduates or discontinues his or her higher education.  The principal and interest for each payment will be forgiven for each payment period in which the participant teaches in a state public school.  Should the participant stop teaching before his or her obligation is completed, payments on the unsatisfied portion of the principal and interest will begin during the next payment period and continue until the repayment obligation is satisfied.  An interest penalty of 14 percent or the highest interest rate allowed by RCW 19.52.020, whichever is higher, will be accessed to recipients who drop out of teacher training programs.

The HEC Board is responsible for collection, servicing, and forgiveness of repayments.  Any collection of repayments will be performed by entities approved by the Washington Student Loan Guarantee Association.

Receipts from repayments will be deposited with the Board and used to cover program costs and fund additional scholarships.  After consulting with the board, the Governor may transfer the teachers conditional scholarship program to another agency with an appropriate educational mission.

A pilot program to increase the number of persons from targeted ethnic minority groups preparing to become teachers is established and assigned to the Office of the Superintendent of Public Instruction (SPI).  The program must:  encourage students from targeted groups in grades nine through twelve to prepare for college or university study of teaching; promote teaching career opportunities; and encourage increased inter-institutional cooperation among colleges and universities, minority education programs, SPI, the State Board of Education, and local school districts.  SPI may grant funds to colleges and universities and school districts to help develop and implement the pilot program.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Student eligibility is changed; participants are required to be registered for at least ten credit hours rather than twelve.  In addition, participants must have declared an intent to complete a program leading to an initial teacher certification rather than to declare a major in teacher education.  College or university graduates who qualify must also be seeking an additional teaching endorsement or initial teacher certification rather than a degree teacher education.

The manner of allocating the scholarships is changed.  Financial need becomes a criteria for "approximately half of the recipients" rather than for "no less than 50 percent" of the available funds.  A further change deletes the requirement which allows no more than 30 percent of the available funds to students in any one of the freshman, sophomore, junior, senior or postgraduate levels.

The amount of each scholarship is limited to $3,000 per academic year for a maximum of five years rather than to either $3,000 or the total amount of tuition fees and services and activities fees charged to a full-time undergraduate student annually at a state institution of higher education.

A further change removes the 14 percent interest penalty on recipients who withdraw from teacher certification programs, fixing the simple per annum interest charge on the outstanding principal at 9 percent.  The pilot program established to increase the number of targeted minority group participants who are preparing to become teachers is also deleted.

A sunset provision is added, stating that no conditional scholarships shall be granted after June 30, 1994, until the program is reviewed by the Legislative Budget Committee and is reenacted by the Legislature.

A title amendment is added to reflect the change.

Fiscal Note:    available

Senate Committee - Testified:   EDUCATION:  No one

Senate Committee - Testified:   WAYS & MEANS:  Pam Crocker-Davis, Audubon Society