Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Higher Education Committee

HB 2807

Brief Description:  Creating the Washington promise scholarship.

Sponsors:  Representatives Kenney, Cox, Fromhold and Rockefeller; by request of Governor Locke.

Brief Summary of Bill

$Establishes a statute for the merit and need‑based scholarship program administered by the Higher Education Coordinating Board.

$Eligible students may receive up to two years of tuition at the community college full-time tuition rate.

$Scholarships are awarded to students graduating from public and approved private high schools and students participating in home‑based instruction who meet academic and financial eligibility criteria.

Hearing Date:  2/5/02

Staff:  Antonio Sanchez (786‑7383).

Background:

The Washington Promise Scholarship program provides college scholarships to the state's top high school seniors. Students must come from low‑and middle‑income families and either rank in the top 15 percent of their graduating classes or score 1200 or better on the Scholastic Aptitude Test.  The Washington State Higher Education Coordinating Board (HECB) administers the program, with the assistance for the Office of the Superintendent of Public Instruction (OSPI). The award consists of two years' tuition at the community college full‑time tuition rate.  Currently, the Promise Scholarship is not established in statute.  However, the Legislature appropriated $11.4 million during the 1999‑2001 biennium as a provision in the state operating budget.  The program is currently funded until June 2003.

Of this year=s recipients:

$Almost two‑thirds are women;

$More than one‑third also qualify for the State Need Grant, a financial aid program for students from low‑income families; and

$A little more than half will attend a public four‑year university.

Summary of Bill:

The Promise Scholarship must be administered by the HECB.  The scholarships are not intended to supplant any grant, scholarship, or tax program related to postsecondary education.  Each qualifying student will receive two consecutive annual awards, the value of each not to exceed the full‑time annual resident tuition rates charged by Washington's community colleges.

The scholarships may only be used for undergraduate coursework at accredited institutions of higher education in the state of Washington, and may not be awarded to any student pursuing a degree in theology.  The scholarships may be used for college‑related expenses including tuition, room and board, books, materials, etc.

Eligibility is based on: 1) academic merit, and 2) student family income.

Academic eligibility

Students must graduate in the top 15 percent of their graduating class or students must equal or exceed a cumulative scholastic aptitude test score of 1200 on their first attempt.

Financial eligibility

A student's family income shall not exceed 135 percent of the state median family income adjusted for family size, as determined by the HECB for each graduating class.  Students not meeting the financial eligibility requirements for the first year of scholarship benefits may reapply for the second year of benefits, but must still meet the income standard set by the board for the student's graduating class.

Implementation

The HECB will administer the scholarship, with the assistance of the OSPI.  Public and approved private high schools will provide requested information for academic eligibility to OSPI ,and OSPI, in turn, will provide this information to the HECB.

All money for the scholarship is deposited into an account in the custody of the State Treasurer.  The HECB shall award scholarships to as many students as possible from among those qualifying and will determine the award amount dependent upon availability of funds.

The HECB is directed to change the eligibility for the state need grant from 60 percent of the state median family income to 55 percent when administering it in conjunction with the promise scholarship.

Appropriation:  None.

Fiscal Note:  Not Requested.

Effective Date: The bill contains an emergency clause and takes effect immediately.