S-3097.1

1603-S.E AMS WM S3097.1

ESHB 1603 - S COMM AMD

By Committee on Ways & Means

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. It is the intent of the legislature to study the state's system of financial aid.

NEW SECTION. Sec. 2. (1) The higher education coordinating board shall study the state's financial aid programs to determine whether a comprehensive and coordinated system of assistance known as college promise should be established in order to expand and modify existing programs for needy students: The state need grant program under RCW 28B.10.790 through 28B.10.824 and the state work study program under chapter 28B.12 RCW.

(2) By January 1, 1994, the higher education coordinating board, in consultation with the house of representatives and senate higher education and fiscal committees, and the institutions of higher education, shall report to the legislature its findings and recommendations for the state's financial aid system.

NEW SECTION. Sec. 3. The guidelines and priorities set forth in this act shall be reviewed by the higher education coordinating board. The report to the legislature shall include, but not be limited to:

(a) Specific program eligibility measures and application procedures for the populations of state financial aid recipients;

(b) Specific need analysis criteria and asset protection allowances;

(c) Estimates of how many state residents, both those who are currently enrolled in a college or university and potential enrollees, would be eligible and would be likely to apply for aid under the eligibility criteria identified in section 5 of this act. The estimates, developed in consultation with the office of financial management, the office of the superintendent of public instruction, and other agencies as appropriate, should take into account state economic and demographic factors and other appropriate information;

(d) Estimates of where the aid applicants identified under (c) of this subsection would choose to enroll by type of institution and level of program; and

(e) Estimates of the costs for each state financial aid program, including the state need grant program under RCW 28B.10.790 through 28B.10.824 and the state work study program under chapter 28B.12 RCW to accommodate any new aid applicants estimated under (c) of this subsection, as offset by nonstate sources of aid. Separate cost estimates should be made for each of the aid populations identified under section 5 of this act.

NEW SECTION. Sec. 4. In studying the state's financial aid programs, the higher education coordinating board shall include these guidelines:

(1) For all need-based financial aid programs under RCW 28B.10.790 through 28B.10.824 and chapters 28B.12 and 28B.101 RCW:

(a) Through a mix of federal, state, and other resources:

(i) How to limit the debt of an undergraduate student to no more than one-half of a student's cost of attendance; and

(ii) How to provide more self-help opportunities than grant aid to middle-income students, and approximately equal amounts of self-help opportunities and grant aid to low-income and lower middle-income students. Self-help opportunities include work study and loans;

(b) In studying eligibility for state financial aid programs, consider sheltering home equity on a family's principal place of residence, and sheltering a reasonable portion of savings and farm or business net worth, each insofar as is permissible under state and federal law;

(d) Strive to preserve a range of educational options for needy students, including choice of institutions and programs;

(e) Recognize otherwise unfunded equipment and assistance reasonably needed to accommodate students with disabilities; and

(f) Deliver clear and timely information to current and future postsecondary students about the costs of attending college and available financial aid.

(2) For the state need grant program under RCW 28B.10.790 through 28B.10.824: Whether, as funds are available, the program should be expanded to include new populations of resident students in the following priority order, ensuring that undergraduate students with the most demonstrated financial need receive full grants before less needy students receive any grant:

(a) Low-income undergraduates;

(b) Lower middle-income undergraduates;

(d) Resident graduate and professional students, following the income priorities reviewed for undergraduate students.

(3) For the state work study program under chapter 28B.12 RCW: Whether to increase employment opportunities including off-campus job opportunities with off-campus community service employers.

NEW SECTION. Sec. 5. In studying the state's financial aid programs, the board shall consider the following matrix. The matrix defines income levels, and for each level, the funding priority, and the assistance mix goal.

Guidelines for Funding Needy Undergraduate Students

Classification: Low-income Lower middle-income Middle-income

Family

Income: 0-$20,864 $20,865-$31,296 $31,297-$52,160

(1991 dollars,

family of four)

Percentage Fifty percent Fifty-one to Seventy-six

of State seventy-five to one hundred

Median percent twenty-five

Income: percent

Priority for

Receiving

Grants: First Second Third

Assistance One-half One-half Up to one-third

Mix goal: grants grants grants

One-half One-half Two-thirds

work study work study work study

and loans and loans and loans"

ESHB 1603 - S COMM AMD

By Committee on Ways & Means

On page 1, line 1 of the title, after "education;" strike the remainder of the title and insert "and creating new sections."