HOUSE BILL REPORT

HB 2831

BYRepresentatives Jacobsen, Van Luven, Ebersole, Kirby, Sayan, Rector, Anderson, Dellwo, Inslee, Prentice, Wang, Belcher, Sprenkle, Miller, Rayburn, Basich, P. King, Crane, Wineberry, Winsley, Ferguson, Leonard and Wood

Establishing the American Indian endowed scholarship program.

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; Spanel, Vice Chair; Van Luven, Ranking Republican Member; Basich, Bennett, Doty, Fraser, Heavey, Jesernig, Miller, Prince and Rector.

House Staff:Susan Hosch (786-7120)

Rereferred House Committee on Appropriations

Majority Report:  The substitute bill by Committee on Higher Education be substituted therefor and the substitute bill as amended by Committee on Appropriations do pass.  (22)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Youngsman, Assistant Ranking Republican Member; Appelwick, Belcher, Braddock, Brekke, Dorn, Doty, Ebersole, Ferguson, Hine, Inslee, McLean, Peery, Rust, Sayan, Spanel, Sprenkle, Wang and Wineberry.

Minority Report:  Do not pass.  (4)

      Signed by Representatives Silver, Ranking Republican Member; Bowman, Nealey and Padden.

House Staff:      Sherie Story (786-7142)

AS REPORTED BY COMMITTEE ON APPROPRIATIONS FEBRUARY 2, 1990

BACKGROUND:

American Indians and Alaskan Natives comprise about 1.5 percent of Washington's population, according to 1986 Census Bureau data.  These students are enrolled in the state's colleges and universities at about the same percentage.  However, American Indians participate in significantly larger percentages in lower division courses than in upper division and graduate level programs.  American Indians and Alaskan Natives comprise about two percent of community college enrollment, one percent of enrollment in four-year institutions, and .6 percent of enrollment in graduate and professional programs.

A recent national study found that only a third of the American Indian students who enroll in college obtain a degree.  More than half of the students who drop out do so in their freshman year.  The study found that the greatest difficulties facing American Indian students were limited financial resources, inadequate preparation, and difficulties in adjusting to a campus environment.

The state of Wyoming has attempted to help American Indian students through matching $500,000 in state funds with $500,000 of tribal moneys provided by the Northern Arapaho tribe.  The combined funds were used to create an endowed scholarship fund.  The earnings of the fund are being used to provide scholarships for Northern Arapaho students enrolled in upper-division and graduate level programs.

SUMMARY:

SUBSTITUTE BILL:  The Legislature finds that American Indians are underrepresented in higher education.  The Legislature intends to help rectify past discrimination by creating an endowed scholarship program for American Indian students.

The American Indian Endowed Scholarship Program is created.  The program will be administered by the Higher Education Coordinating Board.  The board's program powers and duties are described.  These include selecting students with the help of a screening committee, adopting rules and guidelines, and publicizing the program.  The board will also solicit and accept donations, deposit donations into the endowment fund, and receive moneys from the state treasurer for funding the scholarships.  The board will name the scholarships in honor of American Indians from Washington who were role models.

The board will design the program and establish student selection criteria with the help of an advisory committee.  The selection criteria will include a priority for upper-division and graduate students.  The criteria may include a priority for students majoring in an area in which expertise is needed by the state's American Indians.

The advisory and the screening committees will be comprised of people involved in helping American Indians to obtain a higher education.  The committees may include representatives of: Indian tribes, urban Indians, the governor's Office of Indian Affairs, the Washington State Indian Education Association, and institutions of higher education.

American Indians who are needy resident students, and who are enrolled full time at a public or accredited independent college or university are eligible to participate.  Participants must be willing to use their education to benefit other American Indians.

The board may award scholarships from funds received from any source, including appropriated funds, private donations, or from earnings on the American Indian Scholarship Endowment fund.  An undergraduate student will receive a scholarship that does not exceed the student's demonstrated financial need.  A graduate student will receive either an amount up to the student's demonstrated need, or the stipend of a teaching assistant at the University of Washington, whichever is higher.  The method of calculating need is described.  The amount of the scholarship is limited to the amount received by a student attending a state research university.  Each student may continue to receive a scholarship for five years, at the discretion of the board.

The American Indian Endowed Scholarship Trust Fund is created. The fund will be administered by the state treasurer.  $500,000 from the state general fund will be deposited in the trust fund and invested by the treasurer. The treasurer will place those moneys in the American Indian Scholarship Endowment Fund at the request of the Higher Education Coordinating Board.  The board may make that request when it has received private cash donations of at least $500,000.  Private cash donations are defined as moneys from nonstate sources, including federal funds, tribal moneys, and assessments by commodity commissions.

The American Indian Scholarship Endowment Fund is established.  The endowment fund will also be administered by the treasurer. The private donations and state matching funds will be deposited into the endowment fund.  The principal of the endowment fund must not be invaded.  The treasurer will invest the money in the fund and release its earnings to the board for scholarships.  No appropriation is necessary for expenditures from either the trust fund or the endowment fund.

$500,000 is appropriated for deposit into the American Indian Endowed Scholarship Trust Fund.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The intent language is modified.  The board will name the scholarships in honor of American Indians from Washington, and technical corrections regarding the method of calculating financial need are made.

CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS (AMENDMENTS):  The appropriation is deleted.

Appropriation:    (Higher Education Committee)  $500,000 for deposit into the American Indian Endowed Scholarship Trust Fund.

(Appropriations Committee)  None.

Fiscal Note:      Requested January 25, 1990.

House Committee ‑ Testified For:    (Higher Education)  Cedric Page and John Klacik, Higher Education Coordinating Board; Bill Baker and Le Toy Eike, Office of Minority Affairs, University of Washington;  Augustine McCaffery, University of Washington;  Theresa Elisoff, School of Social Work, University of Washington; Natalie Charley, John LaPointe, and Faye LaPointe-Bates, University of Washington; Arlen Washines, Yakima Nation Higher Education Programs; Marilyn Bentz, American Indian Student Center, University of Washington; Bernie Whitebear, United Indians of All Tribes Foundation; A.W. Galbreath, The Evergreen State College; and Gabriel Landry, Puyallup Tribe of Indians.

(Appropriations)  Representative Jacobsen; Gabriel Landry, Puyallup Tribe of Indians; and John Klacik, Higher Education Coordinating Board.

House Committee - Testified Against:      (Higher Education)  No one.

(Appropriations)  No one.

House Committee - Testimony For:    (Higher Education) There are a number of reasons that Native Americans are the most underrepresented ethnic group in higher education, but the most important reason is the lack of available financial assistance.  Scholarship funds were once available to students from federally recognized tribes through the Bureau of Indian Affairs.  Most of those scholarship funds are no longer available.  Remaining funds are not sufficient to cover either the inflated costs of higher education or the number of students who want to get an education.  Many of these students come from families in which one or both parents didn't finish high school.  These first generation college students are reluctant to take out loans they cannot pay back if they go back to work within their communities at the low salaries that the tribes can afford to pay.  Many of these students are older than the average student.  Many have dependent children.  Traditional financial aid packages are not tailored to meet their needs.  Consequently, American Indians who do enroll have very high drop out rates.

(Appropriations)  American Indians are the most underrepresented ethnic minority in higher education.  This is a group that needs expanded opportunity through financial assistance.  This program can address past discriminatory practices that contribute to the low self esteem of American Indians.

House Committee - Testimony Against:      (Higher Education)  None.

(Appropriations)  None.