HEAB navigation bar HEAB Main Page Contacting HEAB Financial Aid Application Info Links Questions Aid Administrators Site Map
October 2000 Board Meeting Agenda         October 2000 Meeting Minutes         Board Reports Index

Board Report #01-6

2001-03 Biennial Budget Request

 

General Purpose Revenue (GPR) Program Funding
Per the "budget target policy" an increase of zero and one percent over FY01 GPR Program Funding is being requested. However, if funds do become available, financial assistance programs administered by the Higher Educational Aids Board (HEAB) for postsecondary education should become a priority.

Substantial Unmet Financial Need
Based on data collected annually by HEAB, the total unmet need was $217,400,411 for needy Wisconsin college students in 1998-99 after the family contribution, institutional assistance, federal assistance, and state assistance were applied to the cost of education. This reflects a 41% increase in financial need when compared to the level of financial need found in 1996-97. The financial assistance taken into consideration for this calculation included need based employment, loans, and grants. Please see Attachment A, which provides more detail related to Wisconsin student financial need and funding sources.

Funding Required to Maintain Same Level of Funding as Ten or More Years Ago
The three State funded programs that serve the largest number of Wisconsin college students include the Wisconsin Higher Education Grant (WHEG) with 33,930 recipients in 1998-99; the Wisconsin Tuition Grant (WTG) with 9,406 recipients in 1998-99; and the Talent Incentive Program (TIP) Grant with 4,408 recipients in 1998-99. All three programs are awarded primarily based on the student's financial need. Funding priority should be particularly given to these three programs on an equal basis.

In 1988-89 nine percent of the financial need, calculated for Wisconsin students receiving State assistance, was met through the TIP, WHEG, and WTG Programs. In 1998-99 eight percent of students' financial need was met by the same three programs. An additional $6,156,492 (12% more in funding) in 1998-99 would have brought these three programs back to meeting nine percent of financial need as had been the case ten years prior.

Annual tuition increases since 1990-91 have averaged 8% at colleges and universities in Wisconsin. In order to maintain the same level of financial support from year to year for needy Wisconsin students, an 8% increase annually is necessary.

2001-02 Request
  12% ↑ 8% ↑ 2000-01 Appropriation 2001-02 Total Request
Talent Incentive Program Grant $472,056 $360,304 $4,503,800 $5,336,160
Tribal WI Higher Education Grant* NA $32,000 $400,000 $432,000
UW WI Higher Education Grant $2,069,376 $1,512,024 $18,900,300 $22,481,700
WTC WI Higher Education Grant $1,409,952 $1,056,152 $13,201,900 $15,668,004
WI Tuition Grant $2,205,108 $1,683,088 $21,038,600 $24,926,796
TOTAL $6,156,492 $4,643,568 $58,044,600 $68,844,660

2002-03 Request
  2001-02 Total Request 8% ↑ 2002-03 Total Request
Talent Incentive Program Grant $5,336,160 $426,893 $5,763,053
Tribal WI Higher Education Grant* $432,000 $34,560 $466,560
UW WI Higher Education Grant $22,481,700 $1,798,536 $24,280,236
WTC WI Higher Education Grant $15,668,004 $1,253,440 $16,921,444
WI Tuition Grant $24,926,796 $1,994,144 $26,920,940
TOTAL $68,844,660 $5,507,573 $74,352,233

2001-03 Request
  2001-02 Total Request 2002-03 Total Request 2001-03 Total Request
Talent Incentive Program Grant $5,336,160 $5,763,053 11,099,213
Tribal WI Higher Education Grant* $432,000 $466,560 $898,560
UW WI Higher Education Grant $22,481,700 $24,280,236 46,761,936
WTC WI Higher Education Grant $15,668,004 $16,921,444 32,589,448
WI Tuition Grant $24,926,796 $26,920,940 $51,847,736
TOTAL $68,844,660 $74,352,233 $143,196,893

* This program was established in 1999-01 and is funded through gaming funds rather than GPR.

Funding Required in Order to Award Statutory Maximum
The maximum one can be awarded under the WHEG program per statutes is $1,800 per academic year. The current level of funding allows a maximum of $1,050 for WTC students (with an average award of $750 in 99-00) and $1,500 for UW students (with an average award of $1,012 in 99-00). In order to fund students to the statutory maximum WHEG award of $1,800, funding would need to increase 112% for WTC students and 59% for UW students in 2000-01. The maximum one can be awarded under TIP per statutes is $1,800 per academic year. The current level of funding allows a maximum of $1,250 for continuing students (with an average award of $1,081 for all students in 99-00). In order to fund students to the statutory maximum TIP award of $1,800, funding would need to increase 59% in 2000-01.

Additional 2001-03 Request
(to be added to 2001-02 request and again to the 2002-03 request above)
  2000-01 Appropriation %
Talent Incentive Program Grant $4,503,800 $2,657,242 (59%)
UW WI Higher Education Grant $18,900,300 $11,151,177 (59%)
WTC WI Higher Education Grant $13,201,900 $14,786,128 (112%)
TOTAL $36,606,000 $28,594,547

Need to Eliminate Maximum Grant Statutory Language in Order to Assist the Neediest Students
The Statute indicates a maximum Wisconsin Tuition Grant of $2,300 per academic year and $1,150 per semester. The maximum was last increased in 1998-99 from $2,172. Prior to 1998-99, the last maximum grant adjustment occurred in 1986 when it went from $2,078 to $2,172. During the 1998-99 academic year, 9,406 students received a Wisconsin Tuition Grant. The average grant was $1,923. Currently over 80% of the grant recipients show eligibility for the maximum $2,300.

It is because the majority of the program's recipients are receiving the maximum grant that it is becoming more difficult to distinguish the neediest students, who should receive larger grants, from those who show less need. In essence, the grant is losing its effectiveness of providing the greatest assistance to the neediest student. It is for this reason that the maximum grant amount indicated in the statutes needs to be eliminated. The maximum amount needs to be set annually by the board just as the formula which determines awards under this program is set annually by the board.

Funding Necessary for Programs Focused on Specific Needs
Other programs administered by HEAB that are based on students' financial need along with more specific criteria include the Handicapped Student Grant, Indian Student Grant, Minority Undergraduate Grant, Minority Teacher Loan, and the Teacher Education Loan Program. Although smaller in scope in terms of the number of Wisconsin residents targeted, these programs are still essential in providing access to a postsecondary education in Wisconsin. Please note that several of these programs have also been level funded over the past several years.

Expand and Increase Maximum Award for Indian Student Assistance Grant
The Indian Student Assistant Grant (ISAG) was established to assist Wisconsin residents who are at least twenty five percent Native American and are undergraduate or graduate students enrolled in degree or certificate programs at a University of Wisconsin, Wisconsin Technical College, an Independent College or University, Tribal College or a Proprietary Institution in Wisconsin. Awards are based on financial need with a limit of ten semesters of eligibility.

Currently the maximum award under this program is $1,100. Prior to 1995-96, the maximum award was $2,200. The award had been split in half in 1995-96 because funding availability dropped by 50%.

Since the decrease in the maximum, there has been an increasing number of Native American students who have been forced to drop out of school due to lack of funding. It appears that, although not all students would be eligible for a maximum of $2,200 under this program, students who have financial need have very high financial need and require the highest maximum grant possible in order to afford to stay in school.

In order to fund an increase in the maximum, the program's appropriation would also need to double. The ISAG Program is funded through Gaming Funds unlike other programs HEAB administers which are funded through General Program Revenue.

2001-03 Request
  2000-01 Approp. 2001-02 Request 8% ↑ 2002-03 Request 2001-03 Request
Indian Student Assistance Grant* $779,800 $1,559,600 $124,768 $1,684,368 $3,243,968

* This program is funded through gaming funds rather than GPR.

Expand Minority Undergraduate Grant
Awards under the Minority Undergraduate Grant Program are made to resident minority undergraduates, excluding first year students. The student must be enrolled at least half-time at an Independent or a Wisconsin Technical College institution. According to the statutes, a minority student is defined as a student who is an African American, American Indian, Hispanic, or Southeast Asian from Laos, Cambodia, or Vietnam admitted to the U. S. after December 31, 1975. Awards are based on financial need with a maximum grant of $2,500 per year, which can be received for up to eight semesters. The University of Wisconsin System has a similar program for students attending those institutions called the Lawton Grant.

During the 1998-99 academic year, 354 Wisconsin Technical College students received on average $994 grants under this program. That same year, 271 Independent College and University students received on an average $1,263. A total of $693,960 was awarded to all recipients in 1998-99. If funds were available, best projections indicate that an additional $900,000 could have been spent beyond the $693,100 allocated for 1999-00.

Based on projections, in approximately 2017 our minority population will become our majority population. In 2012 it is expected that 40% of our high school graduates will be minority students. The question has been raised, "Will our future majority residents be educationally prepared?" Currently minority students are underrepresented in Wisconsin colleges and universities.

To prepare for Wisconsin's future this program's overall funding needs to increase by $900,000 in addition to expanding the program's eligibility to include first year students. This would allow not only the retention of today's minority students but would also provide a mechanism to recruit minority students into Wisconsin's colleges and universities.

2001-03 Request
  2000-01 Appropriation Fund Existing Program Expand Program 2001-02 Request
Minority Undergraduate Grant $693,100 $900,000 $638,000 $2,231,100

  2001-02 Request 8% ↑ 2002-03 Request 2001-03 Request
Minority Undergraduate Grant $2,231,100 $178,488 $2,409,588 $4,640,688

Expand and Increase Maximum Award for Minority Teacher Loan
The Minority Teacher Loan (MTL) Program provides loans at five percent interest in amounts of up to $2,500 per year (with a maximum of $5,000 total) to Wisconsin resident, minority, undergraduate juniors or seniors. Recipients must be enrolled at least half-time in programs leading to teacher licensure at an Independent or University of Wisconsin Institution. According to the statutes, a minority student is defined as a student who is an African American, American Indian, Hispanic, or Southeast Asian from Laos, Cambodia, or Vietnam admitted to the U. S. after December 31, 1975. The student who participates in this program must agree to teach in a Wisconsin school district in which minority students constitute at least twenty nine percent of total enrollment or in a school district participating in the inter-district pupil transfer (Chapter 220) program. For each year the student teaches in an eligible school district, 25% of the loan is forgiven. If the student does not teach in an eligible district, the loan must be repaid at an interest rate of 5%.

During the 1998-99 academic year, 127 students received on an average $1,833 in loan assistance under this program. A total of $232,852 was awarded to all recipients in 1998-99. If funds were available, best projections indicate that an additional $240,000 could have been spent beyond the $240,000 allocated for 1999-00 as well as an additional $381,000 to bring the maximum award up to $4,000.

The MTL is also tied to the concern that we may not be sufficiently meeting the needs of the future (similar to the concerns indicated under the previous point related to the Minority Undergraduate Grant). MTL, however, is specific to training minority teachers. K-12 schools with greater than 29% enrolled minority students or schools who participate in the inter-district pupil transfer program have indicated that an enormous need to educate more minority teachers exists. Enrollment at Milwaukee Public Schools in 1998, for example, consisted of over 68% minority students. The same year, just over 21% of the teachers came from minority backgrounds. By increasing the maximum award and funding, the gap between minority students and minority teachers would decrease.

2001-03 Request
  2000-01 Appropriation Fund Existing Program Increase Maximum Award 2001-02 Request
Minority Teacher Loan $240,000 $240,000 $638,000 $1,118,000

  2001-02 Request 8% ↑ 2002-03 Request 2001-03 Request
Minority Teacher Loan $1,118,000 $89,440 $1,207,440 $2,325,440

Expand Dental Capitation Program
The Dental Capitation Program provides tuition assistance for a limited number of Wisconsin residents who attend Marquette University's School of Dentistry. The program was originally established to educate and keep Wisconsin dentists. The number of participants in the program for 2000-01 is 100. Each award is $11,670 annually. The amount of assistance per student has remained level since the 1994-95 academic year even though costs over the same time period have increased. In 1994 nonresident tuition was $24,140. With the capitation assistance resident tuition in 1994-95 was $12,470 or 51% of the nonresident tuition. In 2000-01 nonresident tuition is $31,000. With capitation assistance resident tuition in 2000-01 is $19,330 or 62% of the nonresident tuition. It is currently being predicted that there will be a severe shortage of dentists in Wisconsin in the near future supporting the need to increase the number of dentists in the State. There is also a concern that the average loan debt per dental student continues to rise. The class of 1999 Wisconsin dental students graduated with an average dental school debt of $82,299 along with an average of $12,297 of undergraduate debt. The highest level of dental school debt one student graduated with in 1999 was $145,625. Data from the School of Dentistry indicates that the current capitation program has been successful in retaining Wisconsin dentists. Expanding the capitation program to allow an additional 15 students per class level (to occur over the next two biennial periods) and bringing the level of assistance per student closer to 50% of the nonresident tuition rate ($15,000), as was the case in 1994-95, would address concerns related to the shortage of dentists in the State and the concern that the program is deteriorating.

2001-03 Request
  2000-01 Appropriation Increase Maximum Award Add 15 Students 2001-02 Request
Dental Capitation $1,167,000 $333,000 $225,000 $1,725,000

  2001-02 Request Add 15 Students 2002-03 Request 2001-03 Request
Dental Capitation $1,725,000 $225,000 $1,950,000 $3,675,000

Brain Drain
Recently there has been a great deal of discussion centering on the issues of "brain drain." There is the concern that Wisconsin colleges and universities educate its residents only to see them leave the state once they graduate.

According to data collected by the Higher Educational Aids Board, in 1998-99 approximately 83% of all the students enrolled at Independent Colleges and Universities, University of Wisconsin schools, and Wisconsin Technical Colleges are Wisconsin residents. Some systems have not collected the percentage of Wisconsin residents who stay in Wisconsin after graduation. However, for those who have, it appears that the great majority of Wisconsin residents do stay in the State after graduating from a Wisconsin college. For example, the WTC System Board indicates that based on their studies 90% of their graduates stay in Wisconsin after graduating. In a 1997 national study Wisconsin ranked seventh in the nation to hold onto college graduates after they graduate, but ranked 50th in recruiting non-residents.

The question becomes how can Wisconsin avoid or reverse a brain drain and/or a labor force deficit? How can Wisconsin more highly educate its residents and retain or continue to retain them once they complete their degree?

Increase Maximum/Awards for the Academic Excellence Scholarship
Academic Excellence Scholarships are awarded to Wisconsin high school seniors who have the highest grade point average in each public and private high school throughout the State of Wisconsin. The number of scholarships each high school is eligible for is based on total student enrollment. In order to receive a scholarship a student must be enrolled on a full-time basis, by September 30th of the academic year following the academic year in which he or she was designated as a scholar, at a participating University of Wisconsin, Wisconsin Technical College, or Independent institution in the State. The maximum scholarship is currently $2,250. The maximum scholarship for students awarded in 1995-96 and prior was full tuition and fees at a UW campus or Wisconsin Technical College, or an amount equal to the UW - Madison tuition and fees for the students attending independent institutions in Wisconsin. Half of the scholarship is funded by the state, while the other half is matched by the institution.

The intention of this program is to keep the best and the brightest in Wisconsin, as indicated earlier. Most recent data indicates that the program may no longer be fulfilling its purpose due to the $2,250 annual maximum. Tuition at UW - Madison (which the program was tied to in 1995-96 and prior) is $3,735 for 2000-01. Data is showing that more students who are designated the recipient of the scholarship are choosing not to stay in Wisconsin and therefore the alternate is accepting the scholarship instead. Some would argue that the alternate may be as academically strong as the designated recipient. Since data has also shown that the majority of AES participants stay in Wisconsin after graduating and that the scholarship did impact the decision by the student to attend a Wisconsin college rather than travel out of state, consideration should be given to expanding the number of scholarships awarded.

Doubling the program would double the opportunity for Wisconsin's best and brightest to stay in Wisconsin. Increasing the maximum award for each student to $3,735 would restore the program back to its original model and encourage Wisconsin's best and brightest to stay in the state. Both steps would address the "brain drain" concern.

2001-03 Request
  2000-01 Appropriation Expand Program Increase Maximum Award 2001-02 Request
Academic Excellence Scholarship $2,855,000 $2,855,000 $3,771,468 $9,481,468

  2001-02 Request 2002-03 Request 2001-03 Request
Academic Excellence Scholarship $9,481,468 $9,481,468 $18,962,936

I have included Attachment B which reflects the zero and one percent request for the 2001-03 biennial period along with Attachment C that indicates the funding request "if additional funds become available." They also incorporates projected figures for the two programs that have sum sufficient appropriations.

Attachment A     Attachment B     Attachment C

 

DECISION ITEM 7005
PROPOSED STATUTORY LANGUAGE CHANGES

Contact Person for all Requests: Jane Hojan-Clark

 

PLEASE NOTE:
Text to be added to a statute will be shown in italic print.
Text to be deleted from a statute will be shown struck-through.

 

UNDER BUDGET REQUEST A OR BUDGET REQUEST B:
Request One - Need to Eliminate Maximum Grant Statutory Language in Order to Assist the Neediest Students

Description
State Statute 39.30(3m)(a)
No grant awarded under this section may exceed $1,150 per semester or a prorated amount in the case of a quarter or trimester institution, or $2,300 per academic year. Grants under this section may not be less than $250 during any one academic year.

Intent
The Statute indicates a maximum Wisconsin Tuition Grant of $2,300 per academic year and $1,150 per semester. The maximum was last increased in 1998-99 from $2,172. Prior to 1998-99, the last maximum grant adjustment occurred in 1986 when it went form $2,078 to $2,172. During the 1998-99 academic year, 9,406 students received a Wisconsin Tuition Grant. The average grant was $1,923. Currently over 80% of the grant recipients show eligibility for the maximum $2,300.

It is because the majority of the program's recipients are receiving the maximum grant that it is becoming more difficult to distinguish the neediest students, who should receive larger grants, from those who show less need. In essence, the grant is losing its effectiveness of providing the greatest assistance to the neediest student. It is for this reason that the maximum grant amount indicated in the statutes needs to be eliminated. The maximum amount needs to be set annually by the board just as the formula which determines awards under this program is set annually by the board.

UNDER BUDGET REQUEST B:
Request Two - Expand and Increase Maximum Award for the Indian Student Assistance Grant

Description
State Statute 39.38(2)
Grants under this section shall be based on financial need, as determined by the board. The maximum grant shall not exceed $2,200 $4,400 per year, of which not more than $1,100 $2,200 may be from the appropriation under s. 20.235 (l) (k). State aid from this appropriation may be matched by a contribution from a federally recognized American Indian tribe or band that is deposited in the general fund and credited to the appropriation account under s. 20.235 (l) (gm). Grants shall be awarded to students for full-time or part-time attendance at any accredited institution of higher education in this state. The board may not make a grant under this section to a student whose name appears on the statewide support lein docket under 49.854 (2) (b), unless the student provides to the board a payment agreement that has been approved by the county child support agency under s.59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a). Grants shall be renewable for up to 5 years if a recipient remains in good academic standing at the institution that he or she is attending.

Intent
The Indian Student Assistant Grant (ISAG) was established to assist Wisconsin residents who are at least twenty five percent Native American and are undergraduate or graduate students enrolled in degree or certificate programs at a University of Wisconsin, Wisconsin Technical College, an Independent College or University, Tribal College or a Proprietary Institution in Wisconsin. Awards are based on financial need with a limit of ten semesters of eligibility.

Currently the maximum award under this program is $1,100. Prior to 1995-96, the maximum award was $2,200. The award had been split in half in 1995-96 because funding availability dropped by 50%.

Since the decrease in the maximum, there has been an increasing number of Native American students who have been forced to drop out of school due to lack of funding. It appears that, although not all students would be eligible for a maximum of $2,200 under this program, students who have financial need have very high financial need and require the highest maximum grant possible in order to afford to stay in school.

In order to fund an increase in the maximum, the program's appropriation would also need to double. The ISAG Program is funded through Gaming Funds unlike other programs HEAB administers which are funded through General Program Revenue.

UNDER BUDGET REQUEST B:
Request Three - Expand Minority Undergraduate Grant

Description
State Administrative Code HEA 12.02(3)
The student shall be enrolled as a sophomore, junior or senior on at least a half-time basis in a technical college system institution established under ch. 38, Stats., or a private non-profit college or university in Wisconsin eligible to participate in the grant program authorized under s. 39.30, Stats.

HEA 12.03(2) A student's grant eligibility shall extend for a maximum of 8 10 semesters or 12 20 academic quarters of grant eligibility.

Intent
Awards under the Minority Undergraduate Grant Program are made to resident minority undergraduates, excluding first year students. The student must be enrolled at least half-time at an Independent or a Wisconsin Technical College institution. According to the statutes, a minority student is defined as a student who is an African American, American Indian, Hispanic, or Southeast Asian from Laos, Cambodia, or Vietnam admitted to the U. S. after December 31, 1975. Awards are based on financial need with a maximum grant of $2,500 per year, which can be received for up to eight semesters. The University of Wisconsin System has a similar program for students attending those institutions called the Lawton Grant.

During the 1998-99 academic year, 354 Wisconsin Technical College students received on average $994 grants under this program. That same year, 271 Independent College and University students received on an average $1,263. A total of $693,960 was awarded to all recipients in 1998-99. If funds were available, best projections indicate that an additional $900,000 could have been spent beyond the $693,100 allocated for 1999-00.

Based on projections, in approximately 2017 our minority population will become our majority population. In 2012 it is expected that 40% of our high school graduates will be minority students. The question has been raised, "Will our future majority residents be educationally prepared?" Currently minority students are underrepresented in Wisconsin colleges and universities.

To prepare for Wisconsin's future this program's overall funding needs to increase by $900,000 in addition to expanding the program's eligibility to include first year students. This would allow not only the retention of today's minority students but would also provide a mechanism to recruit minority students into Wisconsin's colleges and universities.

UNDER BUDGET REQUEST B:
Request Four - Expand and Increase Maximum Award for Minority Teacher Loan

Description
State Administrative Code HEA 11.04(1)
Eligible borrowers may receive up to $2,500 $4,000 a year. The exact loan amount will be equal to the borrower's cost of education minus the need-based aid the borrower is offered. Loans for students that are need based may be replaced in the package of aid by the Minority Teacher Loan Program.

HEA 11.04(2) The total the borrower receives under this program shall net exceed $5,000 $8,000 in outstanding principal.

Intent
The Minority Teacher Loan (MTL) Program provides loans at five percent interest in amounts of up to $2,500 per year (with a maximum of $5,000 total) to Wisconsin resident, minority, undergraduate juniors or seniors. Recipients must be enrolled at least half-time in programs leading to teacher licensure at an Independent or University of Wisconsin Institution. According to the statutes, a minority student is defined as a student who is an African American, American Indian, Hispanic, or Southeast Asian from Laos, Cambodia, or Vietnam admitted to the U. S. after December 31, 1975. The student who participates in this program must agree to teach in a Wisconsin school district in which minority students constitute at least twenty nine percent of total enrollment or in a school district participating in the inter-district pupil transfer (Chapter 220) program. For each year the student teaches in an eligible school district, 25% of the loan is forgiven. If the student does not teach in an eligible district, the loan must be repaid at an interest rate of 5%.

During the 1998-99 academic year, 127 students received on an average $1,833 in loan assistance under this program. A total of $232,852 was awarded to all recipients in 1998-99. If funds were available, best projections indicate that an additional $240,000 could have been spent beyond the $240,000 allocated for 1999-00 as well as an additional $381,000 to bring the maximum award up to $4,000.

The MTL is also tied to the concern that we may not be sufficiently meeting the needs of the future (similar to the concerns indicated under the previous point related to the Minority Undergraduate Grant). MTL, however, is specific to training minority teachers. K-12 schools with greater than 29% enrolled minority students or schools who participate in the inter-district pupil transfer program have indicated that an enormous need to educate more minority teachers exists. Enrollment at Milwaukee Public Schools in 1998, for example, consisted of over 68% minority students. The same year, just over 21% of the teachers came from minority backgrounds. By increasing the maximum award and funding, the gap between minority students and minority teachers would decrease.

UNDER BUDGET REQUEST B:
Request Five - Expand Dental Capitation Program

Description
State Statute 20.235(1)(d)
Dental Education Contract. The amounts in the schedule for support of those Wisconsin residents enrolled as full-time students in the pursuit of a doctor of dental surgery (D.D.S.) degree. An amount of $11,330 in the 1993-94 fiscal year; and $11,670 in the 1994-95 through 2000-01 fiscal years; and $15,000 annually thereafter shall be disbursed under s. 39.46 for each Wisconsin resident enrolled as a full-time student. The maximum number of Wisconsin residents to be funded under this appropriation is 100 in the 1993-94 through 2000-01 fiscal years; 115 in 2001-02 fiscal year; 130 in 2002-03 fiscal year; 145 in 2003-04 fiscal year; and 160 in 2004-05 fiscal year and thereafter.

Intent
The Dental Capitation Program provides tuition assistance for a limited number of Wisconsin residents who attend Marquette University's School of Dentistry. The program was originally established to educate and keep Wisconsin dentists. The number of participants in the program for 2000-01 is 100. Each award is $11,670 annually. The amount of assistance per student has remained level since the 1994-95 academic year even though costs over the same time period have increased. In 1994 nonresident tuition was $24,140. With the capitation assistance resident tuition in 1994-95 was $12,470 or 51% of the nonresident tuition. In 2000-01 nonresident tuition is $31,000. With capitation assistance resident tuition in 2000-01 is $19,330 or 62% of the nonresident tuition. It is currently being predicted that there will be a severe shortage of dentists in Wisconsin in the near future supporting the need to increase the number of dentists in the State. There is also a concern that the average loan debt per dental student continues to rise. The class of 1999 Wisconsin dental students graduated with an average dental school debt of $82,299 along with an average of $12,297 of undergraduate debt. The highest level of dental school debt one student graduated with in 1999 was $145,625. Data from the School of Dentistry indicates that the current capitation program has been successful in retaining Wisconsin dentists. Expanding the capitation program to allow an additional 15 students per class level (to occur over the next two biennial periods) and bringing the level of assistance per student closer to 50% of the nonresident tuition rate ($15,000), as was the case in 1994-95, would address concerns related to the shortage of dentists in the State and the concern that the program is deteriorating.

NOTE: IF BUDGET REQUEST A IS APPROVED, THE NUMBER OF RESIDENTS WOULD NEED TO CHANGE TO 101.

UNDER BUDGET REQUEST B:
Request Six - Increase Maximum / Awards for the Academic Excellence Scholarship

Description

NUMBER OF AWARDS:
State Statute 39.41(1m)(a) Subject to par. (d), by February 15 of each school year, the school board of each school district operating one or more high schools and the governing body of each private high school shall:

  1. For each high school with an enrollment of at least 80 pupils but less than 500 pupils, designate the 2 seniors with the highest grade point averages in all subjects as a scholars.

  2. For each high school with an enrollment of at least 500 pupils but less than 1,000 pupils, designate the 2 4 seniors with the 2 4 highest grade point averages in all subjects as scholars.

  3. For each high school with an enrollment of at least 1,000 pupils but less than 1,500 pupils, designate the 3 6 seniors with the 3 6 highest grade point averages in all subjects as scholars.

  4. For each high school with an enrollment of at least 1,500 pupils but less than 2,000 pupils, designate the 4 8 seniors with the 4 8 highest grade point averages in all subjects as scholars.

  5. For each high school with an enrollment of 2,000 or more pupils, designate the 5 10 seniors with the 5 10 highest grade point averages in all subjects as scholars.

  6. For each high school with an enrollment of 2,500 or more pupils, designate the 6 12 seniors with the 6 12 highest grade point averages in all subjects as scholars.

39.41(1m)(b) By February 15 of each school year, the school board of each school district operating one or more high schools and the governing body of each private high school may, for each high school with an enrollment of less than 80 pupils, nominate the 2 seniors with the highest grade point averages in all subjects who may be designated as a scholars by the executive secretary under par. (c) 3.

39.41(1m)(c) The executive secretary shall:

  1. For the school operated by the Wisconsin Center for the Blind and Visually Impaired, designate the 2 seniors with the highest grade point averages in all subjects as a scholars.

  2. For the Wisconsin School for the Deaf, designate the 2 seniors with the highest grade point averages in all subjects as a scholars.

  3. Designate not more than 10 20 seniors nominated under par. (b) as scholars.

AWARD AMOUNT:
State Statute 39.41(2)(a) If a designated scholar under sub. (1m) is admitted to and enrolls, on a full-time basis, by September 30 of the academic year immediately following the school year in which the senior was designated a scholar, in an institution within the University of Wisconsin System or in a technical college district school that is participating in the program under this section, the scholar shall receive a higher education scholarship that exempts the scholar from all tuition and fees, including segregated fees, at the institution or district school for one year, except that the maximum scholarship for a scholar who receives an original scholarship for the 1996-97 through 2000-01 academic years or for any academic year thereafter may not exceed $2,250 per academic year, and the maximum scholarship for a scholar who receives an original scholarship for the 2001-02 academic year or for any academic year thereafter may not exceed $3,735 per academic year.

39.41(2)(b) For each year that a scholar who receives a scholarship under par. (a) is enrolled full time, maintains at least a 3.000 grade point average, or the equivalent as determined by the institution or district school, and makes satisfactory progress toward an associate or a bachelor's degree, the student shall be exempt from all tuition and fees, including segregated fees, in the subsequent year, except that the maximum scholarship for a scholar who receives an original scholarship for the 1996-97 through 2000-01 academic years or for any academic year thereafter may not exceed $2,250 per academic year, and the maximum scholarship for a scholar who receives an original scholarship for the 2001-02 academic year or for any academic year thereafter may not exceed $3,735 per academic year. No scholar is eligible for an exemption for more than 4 years in the University of Wisconsin System or more than 3 years at a district school.

39.41(2)(c) Subject to sub. (4), for each year the student is exempt from tuition and fees under par. (a) or (b), the board shall pay the institution or district school, on behalf of the student, an amount equal to 50% of the student's tuition and fees, except that the maximum payment for a student who receives an original scholarship for the 1996-97 through 2000-01 academic years or for any academic year thereafter may not exceed $1,125 per academic year, and the maximum payment for a student who receives an original scholarship for the 2001-02 academic year or for any academic year thereafter may not exceed $1,867.50 per academic year.

39.41(3)(a) If a designated scholar under sub. (1m) is admitted to and enrolls, on a full-time basis, by September 30 of the academic year immediately following the school year in which the senior was designated a scholar, in a private institution of higher education that is located in this state and participating in the program under this section, the board shall pay the institution, on behalf of the pupil, an amount equal to 50% of the tuition and fees charged a resident undergraduate at the University of Wisconsin-Madison in the same academic year, except that the maximum payment for a pupil who receives an original scholarship for the 1996-97 through 2000-01 academic years or for any academic year thereafter may not exceed $1,125 per academic year, and the maximum payment for a pupil who receives an original scholarship for the 2001-02 academic year or for any academic year thereafter may not exceed $1,867.50 per academic year.

Intent
Academic Excellence Scholarships are awarded to Wisconsin high school seniors who have the highest grade point average in each public and private high school throughout the State of Wisconsin. The number of scholarships each high school is eligible for is based on total student enrollment. In order to receive a scholarship a student must be enrolled on a full-time basis, by September 30th of the academic year following the academic year in which he or she was designated as a scholar, at a participating University of Wisconsin, Wisconsin Technical College, or Independent institution in the State. The maximum scholarship is currently $2,250. The maximum scholarship for students awarded in 1995-96 and prior was full tuition and fees at a UW campus or Wisconsin Technical College, or an amount equal to the UW - Madison tuition and fees for the students attending independent institutions in Wisconsin. Half of the scholarship is funded by the state, while the other half is matched by the institution.

The intention of this program is to keep the best and the brightest in Wisconsin, as indicated earlier. Most recent data indicates that the program may no longer be fulfilling its purpose due to the $2,250 annual maximum. Tuition at UW - Madison (which the program was tied to in 1995-96 and prior) is $3,735 for 2000-01. Data is showing that more students who are designated the recipient of the scholarship are choosing not to stay in Wisconsin and therefore the alternate is accepting the scholarship instead. Some would argue that the alternate might be as academically strong as the designated recipient. Since data has also shown that the majority of AES participants stay in Wisconsin after graduating and that the scholarship did impact the decision by the student to attend a Wisconsin college rather than travel out of state, consideration should be given to expanding the number of scholarships awarded.

Doubling the program would double the opportunity for Wisconsin's best and brightest to stay in Wisconsin. Increasing the maximum award for each student to $3,735 would restore the program back to its original model and encourage Wisconsin's best and brightest to stay in the state. Both steps would address the "brain drain" concern.

 

PERFORMANCE MEASURES

AGENCY DESCRIPTION

The Higher Educational Aids Board is a part-time independent policy-making board composed of eleven members appointed to serve at the pleasure of the Governor. The Governor appoints one member from the Board of Regents of the University of Wisconsin System; one member from the State Board of the Wisconsin Technical College System; one member who is a trustee of an independent college or university to represent such independent institutions; one student and one financial aid administrator each from within the University of Wisconsin System, Wisconsin Technical College System and independent institutions; one citizen member to represent the general public; and the state superintendent of public instruction.

The Executive Secretary is appointed by and serves at the pleasure of the Governor. The Executive Secretary makes policy recommendations to the Board; carries out policy directives from the Governor, Legislature and Board; and is responsible for initiating and carrying out all administrative direction and responsibilities of the agency. All 12 other permanent agency staff members are in the classified service. The agency is composed of two areas: (1) Programs and Policy (Student Support Activities); and (2) Administration and Fiscal Services.

The board administers the State programs of student financial aid, including scholarship, grant, and loan programs; the Minnesota-Wisconsin reciprocity agreement; a contract for dental education services; and the contracts associated with the Medical College of Wisconsin. The agency's activities are organized into two programs. Program One includes the following subprograms which provide financial support to individuals: Academic Excellence Scholarship, Dental Education Contract (Capitation) Program, Handicapped Student Grant, Indian Student Assistance Grant, Minnesota-Wisconsin Reciprocity Program, Minority Undergraduate Grant, Minority Teacher Loan, Talent Incentive Program Grant, Teacher Education Loan, Teacher of the Visually Impaired Loan Program, Wisconsin Higher Education Grant, Wisconsin Tuition Grant. Program Two includes the costs of administering the activities grouped under Program One along with costs associated with servicing contracts associated with the Medical College of Wisconsin, the Independent Student Grant, Nursing Student Stipend Loan, Paul Douglas Scholarship, Wisconsin Health Education Assistance Loan, and the Wisconsin Nonguarantee Loan.

MISSION
The mission of the Higher Educational Aids Board (HEAB) is to ensure that all students be provided equal access and diversity in obtaining a higher education and make certain the funds for each program HEAB administers are distributed in a fair, equitable and timely manner.

PROGRAMS, GOALS, OBJECTIVES AND ACTIVITIES

Program 1: Academic Excellence Scholarship
Goal:
Keep the best and the brightest in the State of Wisconsin

Objective/Activity:
Academic Excellence Scholarships are awarded to Wisconsin high school seniors who have the highest grade point average in each public and private high school throughout the state of Wisconsin. The number of scholarships each high school is eligible for is based on total student enrollment. In order to receive a scholarship, a student must be enrolled on a full-time basis by September 30th of the academic year following the academic year in which he or she was designated a scholar at a participating University of Wisconsin, Wisconsin Technical College, or Independent institution in the state. The value of the scholarship is $2,250 per year, to be applied towards tuition. Half of the scholarship is funded by the state, while the other half is funded by the institution.

Program 2: Minority Teacher Loan
Goal:
Increase the number of minority teachers in the State of Wisconsin

Objective/Activity:
The Minority Teacher Loan Program provides loans to Wisconsin resident, minority, undergraduate juniors or seniors who are enrolled at least half-time in programs leading to teacher licensure at Independent or University of Wisconsin Institutions. The maximum award per year is $2,500 with an overall maximum of $5,000. According to the statutes, a minority student is defined as a student who is either an African American, American Indian, Hispanic, or Southeast Asian from Laos, Cambodia, or Vietnam admitted to the U. S. after December 31, 1975. The student who participates in this program must agree to teach in a Wisconsin school district in which minority students constitute at least twenty nine percent of total enrollment or in a school district participating in the inter-district pupil transfer (Chapter 220) program. For each year the student teaches in an eligible school district, 25% of the loan is forgiven. If the student does not teach in an eligible district, the loan must be repaid at an interest rate of 5%.

PERFORMANCE MEASURES

Prog.
No.
Performance Measure Actual
FY99
Projected
FY00
Projected
FY01
Goal
FY02
1. a. Percentage of recipients persuaded by scholarship to attend school in WI. 53.5% 53.5% 53.5% 63.5%*
1. b. Percentage of "scholarship recipient graduates" who plan to stay in WI after graduation. 59.3% 59.3% 59.3% 59.3%**
2. a. Percentage of recipients in repayment. 29% 29% 29% 29%
2. b. Percentage of recipient awards forgiven or expected to be forgiven. 71% 71% 71% 71%
* Assumes 2001-03 Biennial Budget Request B is approved.
** Biennial Budget Request B, if approved, would have an impact in four years.

 

October 2000 Board Meeting Agenda         October 2000 Meeting Minutes         Board Reports Index

HEAB Main Page         Contacting HEAB         Financial Aid Programs         Financial Aid Application Information
Frequently Asked Questions         Links         Information for Financial Aid Administrators         Site Map

© Copyright 2000 by the Higher Educational Aids Board
HEAB E-Mail: HEABmail@wisconsin.gov
State of Wisconsin E-Government Privacy Notice