SENATE BILL REPORT

SB 5395

BYSenators Patterson, Saling, Rinehart, Bauer and Smitherman; by request of Higher Education Coordinating Board

Revising provisions for adjustment of state appropriations for needy student financial aid.

Senate Committee on Higher Education

Senate Hearing Date(s):January 26, 1989; February 6, 1989

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

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

Senate Staff:Scott Huntley (786-7421)

                  February 7, 1989

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION, FEBRUARY 6, 1989

BACKGROUND:

In 1977 the Legislature adopted SHB 312 which, in part, established the legislative intent that state appropriations to financial aid should be increased in order to alleviate the additional burden that a tuition increase may cause for needy students.  At that time, the Legislature directed that state financial aid appropriations should be increased in an amount that, together with estimated increases in the federal basic education opportunity grant, would equal 24 percent of any change in revenue resulting from revisions in tuition and fee levels.

The Higher Education Coordinating Board has recommended that this 24 percent of change-in-revenue level be increased, beginning in 1991, to 35 percent, in order to match the proportion of state enrollment which presently makes application and qualifies as needy for financial aid purposes.  The board further recommends that this percentage of change-in-revenue be adjusted annually thereafter in order to reflect any changes in the proportion of needy financial aid applicants as a share of enrollment.

SUMMARY:

It is the sense of the Legislature that, beginning July 1, 1991, state appropriations for student financial aid are to be adjusted in an amount which, together with funds estimated to be available in the form of basic educational opportunity grants, will equal 35 percent of any change in revenue estimated to occur as a result of revisions in tuition and fee levels.  Thereafter, this percentage is to be increased or decreased annually to reflect the changes in needy financial aid applicants as a share of enrollment.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Effective Date:July 1, 1991

Senate Committee - Testified: FOR:  Shirley Ort, Higher Education Coordinating Board; Elizabeth Woody, Washington Student Lobby; Stephanie Adams, Washington Student Lobby; Bob Maier, Washington Education Association; Selena Dong, University of Washington Students; Jan Yoshiwara, State Board for Community College Education; Kate Bligh, South Puget Sound Community College