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Minutes for HB2515 - Committee on Education

Short Title

Creating the Kansas promise scholarship program.

Minutes Content for Mon, Mar 9, 2020

Chairperson Baumgardner opened the hearing.

Staff gave an overview on the bill. Staff provided the Committee with a Comparison Chart of SB336 and HB2515. (Attachment 1)

Senator Rucker asked for clarification on which institutions would qualify to participate in the program.

Senator Sykes asked the extent to which persons who receive awards through our service scholarship programs went into repayment status or who elected to repay the award rather than meet the service requirements.

Proponents:

Heather Morgan, Executive Director, Kansas Association of Community College Trustees (KACCT), stated the Kansas Promise Scholarship Act would be a "last dollar" program giving access to community and technical college education for Kansas high school graduates. This Act is a targeted economic development tool focusing these scholarship dollars on jobs within the Kansas economy which are in the highest demand to help companies meet the talent needs they have today and in the future. The Kansas Board of Regents would be directed to work with the Department of Commerce and business and industry to determine which fields in the Kansas economy are most in demand. The workforce needs in Southwest Kansas differ from the needs of Northeast Kansas; therefore, it is a critical piece of this act to make these determinations. This program would only kick-in after all other scholarships and Pell grants are applied to the student's tuition, fees, and textbook/material obligations. After the House hearing on this bill, one community college examined the potential fiscal impact by looking at Kansas high school graduates for the past two school years who were enrolled in its technical education programs. The results revealed 51% were recent graduates and of those, 43% were eligible for Pell Grants and received on average $750 in additional scholarships. The non-Pell Grant eligible students received $2,250 a year in scholarships leaving $2,170 a year uncovered which the Promise Scholarship would cover. First-year estimated cost for the community college system would be $2.5 million the first year. $5.1 million per year thereafter. The study also revealed over 63% of the eligible technical education students arrived at college with at least 15 credit hours already earned. KACCT recommends two amendments. One to include five statewide job fields and pathways replacing the current 10, and the other recommendation would require the student to “live and” work in the state for at least two consecutive years following completion of the program. (Attachment 2)

Blake Flanders, PhD, President and CEO, Kansas Board of Regents (KBOR), brought to the Committee’s attention that this bill is similar to the Career Technical Workforce Grant available to students enrolled in programs of study for a high cost, high demand, or critical industry field. He encouraged the Committee to consider the potential wages of the graduates and evolving requirements of employers as well as the workforce needs for high demand fields. When the call to generate more nurses and engineers was made, our system successfully leveraged targeted state appropriations into program graduates. This bill could be another successful workforce story for our state. The Center on Education and the Workforce published a workforce report and found the level of education matters in getting a good job. Kansas has not kept pace with surrounding states in investing in student financial aid. The Board of Regents sees this legislation as a complement to our Kansas Access Partnership. KBOR requests that the reference to the Higher Learning Commission is replaced with “a nationally recognized accrediting agency for higher education in the United States”. This is necessary for compliance with the new federal regulation governing the recognition of accrediting agencies with the federal Higher Education Act.(Attachment 3)

Kate Allen, Advancement and Government Affairs, Johnson County Community College, said the Promise Act’s purpose is clear: strengthen the college-going culture to build an educated population that can meet the changing needs of America’s workforce. The three components of the program are the bill’s “last-dollar” concept, possible conflict with Community College Foundation scholarships, and eliminates confusing jargon that surrounds financial aid for higher education. Johnson County Community College stands ready to provide information they’ve gathered in their exploration of this concept to help make this the best possible program for Kansas. (Attachment 4)

Jim Genandt, President, Kansas Technical Colleges (KTC), commended the Committee on focusing on the sector of post-secondary education where the demand is continuing to rise and return on investment to Kansas is dramatic. For Kansas, technical colleges produce the highest student graduation rates with job placement rates of over 90% with 90% of students staying in Kansas after completion. Our technical colleges are some of the most highly ranked in the nation. KTC recommends clarification concerning having students complete the Free Application for Federal Student Financial Aid (FAFSA) process and what types of aid they would have to accept to be eligible for the Kansas Promise Scholarship. What is not clear is would they be expected to accept any federal grants and/or work-study aid, but not have to accept student loans. The intent of the scholarship is to help students reduce and/or eliminate student loan indebtedness offers very positive impact for persons to support the legislation, fund it, and use it. (Attachment 5)

Matt Lindsey, President, Kansas Independent College Association (KICA), agrees the State can and should do more to support Kansans pursuing some form of post-secondary credential as a means to enhancing their employability and lifetime earnings. KICA is grateful the House amended the original version of the bill to ensure associate degree and technical degree programs at accredited non-profit colleges in Kansas are included as eligible programs for students to receive support through the Promise Act. Included in this testimony is a list of KICA institutions with degree programs relevant to this bill and the number of credentials awarded last year. (Attachment 6)

Written Proponent testimony was submitted by:

John Jenks, Director, Public Policy, The Greater Kansas City Chamber of Commerce (Attachment 7)

Jessica Lucas, Government Affairs Liaison, Cowley College (Attachment 8)

Randy Stookey, JD, Senior Vice President of Government Affairs, Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association, Renew Kansas Association (Attachment 9)

Senator Alley asked if it is correct that many Pell Grants are unfulfilled. Dr. Flanders responded affirmatively and explained students are often eligible for Pell but applications often do not get completed for one reason or another. The application form is probably the largest stumbling block as it is difficult to complete with the amount of information needed and parents are sometimes uncooperative.

Senator Bollier asked if there had been any thought regarding an interest rate if someone must pay the scholarship back. Dr. Flanders said they have not discussed it.

The Chair inquired if the House Education Committee discussed GPA and academic progress. The answer was no.

The Chair asked if the House Education Committee discussed any possibility of students being able to attend any of the Regents Schools since some students are entering college with 30-60 credit hours. Ms. Morgan said a bridge was suggested to her in a private conversation. Staff reported that the House Committee was informed of that four-year public institutions were not included but the Committee did not address it.

The Chair asked if the House Education Committee discussed students who delay starting college immediately after high school, are not gainfully employed or are foster kids. A no answer was given.

Senator Pyle asked what the success rate is with the Career Technical Workforce Grant and if this program is similar, why do we need this new one. Dr. Flanders did not have the numbers with him but would provide them. He explained this bill is a “last dollar in” program and the Grant is a traditional award and is much smaller. It is similar because it looks at the high demand fields.

The Chair inquired of Dr. Flanders if the four-year Regent Institutions are wanting to be involved in this program. Dr. Flanders recommended the Committee keep it to high demand fields but suggested they discuss it giving the examples of two high demand fields being cyber-security and nursing requiring a bachelor’s degree. Senator Pyle questioned the GPA requirement of this bill being high enough for these two fields.

The Chair asked if there was discussion in the House Education Committee regarding the student working part-time and participating in an internship or apprenticeship? Ms. Morgan replied that an internship could qualify as the part-time work. She is not sure how that ended.

The Chair inquired if the House Education Committee discussed the aspect of a student being a full-time and the requirement to do volunteer work or the work requirement. Mr. Genandt said every technical program has an internship or clinical experience so they may be able to use that to fulfill that requirement. Apprenticeships are new in the state but there will be a push to do more of those.

Senator Pyle asked Research to provide information on apprenticeship programs in other states and from the private sector. The Chair suggested a breakdown of the different industry areas. (Attachment 10)

Chairperson Baumgardner closed the hearing.

The meeting was adjourned at 2:26 PM.

The next scheduled meeting is March 10, 2020