SENATE BILL REPORT

SB 5950

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of First Substitute Bill

Establishes the Social Work Professional Loan Repayment Program for social workers or social service specialists employed by the Department of Children, Youth, and Families (DCYF) or at an entity providing social work services in the field of mental health and substance abuse.
Makes social workers or social worker specialists eligible after two years of qualified service.
Allows eligible social workers or social worker specialists to receive up to $50,000 in loan repayment funds spread over a maximum of ten years.

Background: Social Workers in Washington State. A person may only use the designation of social worker if the person is licensed by Department of Health as a social worker, or has graduated with at least a bachelor's degree from a social work educational program accredited by the Council on Social Work Education. Licensure is dependent on education and experience. According to the Bureau of Labor Statistics, among types of social workers, the most common are child, family, and school social workers and health care social workers.

Public Service Loan Forgiveness. The Public Service Loan Forgiveness Program is a federal program that forgives the remaining balance on direct loans after participants have made 120 monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Qualifying employers include governmental organizations and non-profit organizations.

Health Professionals Loan Repayment Program. The Office of Student Financial Assistance within the Washington Student Achievement Council currently administers the Health Professionals Loan Repayment Program. The program awards state funds up to $75,000 with a minimum three-year service obligation. In 2016, approximately 100 health professionals worked in underserved areas of Washington as a result of this program. Since 1990, the program has funded over 1000 professionals serving in 38 Washington counties, and demand continues to exceed funding available.

Summary of Bill (First Substitute): The Social Work Professional Loan Repayment Program is established for social workers or social service specialists employed by DCYF and social workers employed at an entity providing social work services in the field of mental health and substance abuse. Social workers or social service specialists are eligible to participate in the loan repayment program after two years of employment as a social worker or social service specialist at DCYF or at an entity providing social work services in the field of mental health and substance abuse.

Each participant is eligible for quarterly or more frequent loan payments, and a maximum lifetime award of $50,000 for a maximum of ten years or until the loan is repaid.

Repayment on an eligible participant's loans will be until either the loan is repaid, the participant leaves qualifying service, or the award limits are reached.

The Office of Student Financial Assistance (OSFA) at the Washington Student Achievement Council will administer the Social Work Professional Loan Repayment Program. OSFA must verify all social work professionals who are eligible to participate, adopt rules governing the program, and coordinate with stakeholders to publicize the program and maximize participation. OSFA may also accept grants and donations from public and private sources for the program.

The Social Work Professional Loan Repayment Program Fund is created in the custody of the state treasurer.

EFFECT OF CHANGES MADE BY HIGHER EDUCATION & WORKFORCE DEVELOPMENT COMMITTEE (First Substitute):

Extends the social worker loan repayment program to social workers employed at an entity providing social work services in the field of mental health and substance abuse; and
Adds the term "social service specialists" to those who qualify for the social worker loan repayment program in employment at DCYF.

Staff Summary of Public Testimony on Proposed Substitute: The committee recommended a different version of the bill than what was heard. PRO: DCYF social workers do some of the hardest work in state government. Our foster care system is in crisis. The burnout is high. Each time a social worker leaves, children suffer. Our foster care system is about stability. Tackling adverse childhood experiences earlier would help these individuals when they become adults. Child welfare workers must have a unique skill set to navigate the system, and deal with trauma. There are long unpredictable hours. Social workers in the private sector are offered more money for less hours of working. At times, my office has had turnover of over 50 percent. This will help retain workers and recruit skilled staff to do this work for the state. The financial burden of loan debt is problematic. Student loan repayment relief will help social workers and make a stronger, better work force.