SENATE BILL REPORT

ESHB 2831

BYHouse Committee on Higher Education (originally sponsored by Representatives 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

Rereferred House Committee on Appropriations

Senate Committee on Higher Education

Senate Hearing Date(s):February 19, 1990; February 21, 1990

Majority Report:  Do pass as amended and be referred to Committee on Ways & Means.

      Signed by Senators Saling, Chairman; Patterson, Vice Chairman; Bauer, Cantu, Smitherman, Stratton, von Reichbauer.

Senate Staff:Scott Huntley (786-7421)

                  February 22, 1990

Senate Committee on Ways & Means

Senate Hearing Date(s):February 26, 1990

Majority Report:  Do pass as amended.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Fleming, Gaspard, Hayner, Johnson, Lee, Moore, Newhouse, Niemi, Saling, Warnke, Wojahn.

Senate Staff:Linda Brownell (786-7715)

                  February 28, 1990

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 26, 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 2 percent of community college enrollment, 1 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:

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 defining eligible American Indians, 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.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 25, 1990

SUMMARY OF PROPOSED SENATE HIGHER EDUCATION AMENDMENT:

$500,000 is appropriated from the general fund to the American Indian Scholarship Endowment trust fund.

SUMMARY OF PROPOSED SENATE WAYS & MEANS AMENDMENT:

The amendment removes the appropriation and makes the program contingent upon funding in the budget.

Senate Committee - Testified: HIGHER EDUCATION:  Cedric Page, HEC Board (pro); Ken LaFontaine (pro); Letoy Elke, AIWSL (pro); Bill Baker, U of W (pro); Augustine McCaffery, U of W (pro); Josephine Arnold, Native American Advisory Committee (pro); Bernie Whitebear, Colville Confederated Tribes (pro); Barbara Peterson, HEC Board

Senate Committee - Testified: WAYS & MEANS:  PRO:  Representative Ken Jacobsen, State Representative; Bill Baker, University of Washington; Augustine McCaffery, Graduate School, University of Washington; Josephine Arnold, American Indian Advisory Committee for CC; Gabriel Landry, Puyallup Tribal Council