HOUSE BILL REPORT
HB 1416
BYRepresentatives Jacobsen, Van Luven, Spanel, Doty, Kremen, Anderson, O'Brien, Locke, Betrozoff, Nelson, Fraser, P. King, R. King, Basich, Brekke and Phillips; by request of Higher Education Coordinating Board
Revising provisions for adjustment of state appropriations for needy student financial aid.
House Committe on Higher Education
Majority Report: Do pass. (10)
Signed by Representatives Jacobsen, Chair; Spanel, Vice Chair; Van Luven, Ranking Republican Member; Fraser, Inslee, Jesernig, Miller, H. Myers, Rector and Wood.
House Staff:Susan Hosch (786-7120)
AS REPORTED BY COMMITTEE ON HIGHER EDUCATION JANUARY 30, 1989
BACKGROUND:
The 1977 Legislature adopted a new statutory mechanism for setting tuition and fees. Beginning in the early 1980's, tuition would be determined based on a statutory percentage of educational costs, and would automatically be adjusted every two years to reflect that cost.
The legislature was concerned about the effect of this new policy on needy students. Therefore, the legislation included a provision recommending that state appropriations for student financial aid be adjusted whenever tuition is adjusted, in order that "needy students not be deprived of access to higher education due to increases in educational costs or consequent increases in tuition and fees." The formula suggested by the legislation is that 24 percent of new revenue from increased public college and university tuition be added to appropriations for student financial aid. The formula included an offset of additional funds estimated to be available for federal Pell Grants.
According to the Higher Education Coordinating Board, the 24 percent formula was originally derived by determining the proportion of full-time needy students compared to the entire full-time college population. Using the same methodology today, the formula would equal 35 percent. The Board has recommended revising the statute to raise the percentage used to determine adjustments to state financial aid programs to 35 percent, beginning July 1, 1991. The Board has also recommended inserting a clause that would automatically adjust the percentage annually to reflect the changes in needy financial aid applicants as a share of total enrollment.
SUMMARY:
Beginning on July 1, 1991, the statutory formula used to determine adjustments of state appropriations for student financial aid is revised from 24 percent to 35 percent of any change in revenue estimated to occur as a result of changes in tuition and fee levels. The percentage will be adjusted annually thereafter to reflect the changes in needy financial aid applicants as a share of enrollment.
Fiscal Note: Requested January 25, 1989.
Effective Date:The act will take effect on July 1, 1991.
House Committee ‑ Testified For: Mike Bigelow, Office of Financial Management; Shirley Ort, Higher Education Coordinating Board; Erik Beck, Washington Student Lobby; Tika Esler, Washington Financial Aid Association; Jim Sullivan, Washington Student Lobby; Elizabeth Woody, Washington Student Lobby; Bob Maier, Washington Education Association and Jan Yoshiwara, State Board for Community College Education.
House Committee - Testified Against: None Presented.
House Committee - Testimony For: The percentage of students needing financial assistance in order to attend a college or university has increased from 24% in the mid 1970's to 35% today. The increased number of needy students has put significant pressure on the state's financial aid programs. Many of the state's neediest students are not being served due to lack of funds. Typically the unserved students are single parents and older, returning students attending a community college. Often, these students do not apply in time to receive aid, since they would have had to apply for aid before an August deadline for the upcoming academic year. Additional funds received from this increase should allow the Board to assist very needy students who apply for aid after the August deadline.
House Committee - Testimony Against: None Presented.