HOUSE BILL REPORT
HB 257
BYRepresentatives Jesernig, Jacobsen, Ebersole, Miller, Bristow, Prince, Sprenkle, Grant, Heavey, Nelson, Ballard, Hankins, Unsoeld, Allen, Sayan, Rayburn, Appelwick, Betrozoff and Wang
Establishing a trust fund program for graduate students.
House Committe on Higher Education
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (11)
Signed by Representatives Jacobsen, Chair; Heavey, Vice Chair; Allen, Barnes, Basich, Jesernig, Nelson, Prince, Silver, Unsoeld and K. Wilson.
House Staff:Susan Hosch (786-7120)
Rereferred House Committee on Ways & Means/Appropriations
Majority Report: The second substitute bill be substituted therefor and the second substitute bill do pass. (20)
Signed by Representatives Locke, Chair; Allen, Braddock, Brekke, Bristow, Ebersole, Fuhrman, Grant, Grimm, Hine, McLean, McMullen, Nealey, Niemi, Peery, Sayan, Silver, H. Sommers, Sprenkle and B. Williams.
House Staff: Bill Robinson (786-7142)
AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS
MARCH 9, 1987
BACKGROUND:
In 1985, Washington instituted an innovative program to attract and retain outstanding faculty. The distinguished professorship program was designed to match public and private funds in support of preeminent scholars at the public four-year universities and college. The early success of this program has encouraged its use in forging partnerships between private individuals and the state to support graduate student fellowships.
SUMMARY:
SECOND SUBSTITUTE: The Washington graduate fellowship trust fund program is created to match public and private funds in support of outstanding graduate students at the public four-year universities and college. Monies in the trust fund will be administered and invested by the state treasurer.
The program will be administered by the Higher Education Coordinating Board, which will adopt program guidelines. These guidelines may include an allocation system based on a variety of factors, however, the allocation system shall be superseded by conditions in any legislative act appropriating funds for the program.
Institutions may apply for $25,000 from the trust fund when they can match the state funds with an equal amount of pledged or contributed private donations. These donations must be made specifically to the program, and must be donated after July 1, 1987. The board may then reserve $25,000 for the school's pledged fellowship. If the pledged amounts are not received within two years, the board must make those reserved funds available for another fellowship. Once the private donations are received by the institution, the state matching funds will be transferred to the college or university's graduate fellowship local endowment fund.
The institution is responsible for investing and augmenting the endowment fund, administering the fellowship, and reporting on the program to the governor and the legislature upon request. The proceeds from the fund may be used to provide fellowship stipends for the recipient's tuition, subsistence, research and other educational expenses.
After consulting with the board and eligible institutions, the governor may transfer the administration of this program to another agency with an appropriate educationally related mission.
By December 1, 1989, the board and any agency administering this program shall make recommendations on any needed program changes.
Monies deposited in the trust fund or in local endowment funds are not subject to collective bargaining.
By August 1, 1987, $200,000 is appropriated for the program. Those funds shall be allotted as follows: $100,000 for the University of Washington, $50,000 for Washington State University, and $50,000 divided among the regional universities and college. By January 1, 1989, if any allotted funds have not been designated as matching funds for qualifying gifts, any institution which has utilized its entire allocation may apply for remaining funds, under rules adopted by the Higher Education Coordinating Board.
SUBSTITUTE BILL COMPARED TO ORIGINAL: The Higher Education Coordinating Board will not set priorities for the program. After consulting with appropriate entities, the governor may transfer program administration to another agency with an appropriate educational mission. By December 1, 1989, the board and any agency administering the program, if applicable, shall make recommendations for needed program changes. Finally, interest earned on the trust funds is not subject to collective bargaining.
SECOND SUBSTITUTE COMPARED TO FIRST SUBSTITUTE: The $200,000 appropriation and fund distribution provisions are removed. The investment income, not the principal, shall be used to fund the program. The investment income, not only the interest income, is not subject to collective bargaining.
Fiscal Note: Not Requested.
House Committee ‑ Testified For: (Higher Education) Gene Woodruff, University of Washington; Heather Worthley, graduate student, University of Washington; Jody Nyquist, University of Washington.
(Ways & Means/Appropriations) Gene Wooddruff, University of Washington; Heather Worthly, University of Washington; Steve Burkett, Washington State University; Jim Sullivan, Washington Student Lobby.
House Committee - Testified Against: (Higher Education) None Presented.
(Ways & Means/Appropriations) None Presented.
House Committee - Testimony For: (Higher Education) Institutional competition is intense for outstanding graduate students. These students set the standards for graduate programs, and provide invaluable assistance with research projects. Fellowships help to attract these superior students. Unlike some of our peer institutions, Washington's universities are not able to offer any state funded fellowships. Graduate students teach 28 percent of undergraduate credit hours at the University of Washington. These students tend to be self-supporting; many are married, with children. Graduate students have higher tuition than undergraduates, but they are not eligible for most forms of financial aid. Nationwide, these students are borrowing an average of $6,000 per year. This program will match private donations with state funds to assist these superior students with their educational expenses.
(Ways & Means/Appropriations) Same as Committee on Higher Education.
House Committee - Testimony Against: (Higher Education) None Presented.
(Ways & Means/Appropriations) None Presented.