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Board Report #99-10

1999-2001 Bienniel Budget Submission



HIGHER EDUCATIONAL AIDS BOARD

The Higher Educational Aids Board (HEAB) is a policy making board composed of 11 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 fron the State Board of the Wisconsin Technical College System to represent public education; one member who is a trustee of an independent college to represnt such independent institutions, one student and one financial aid administrator each to represent 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 board is composed of two divisions: Programs and Policy (Student Support Activities) and Administration and Fiscal Services. It administers the state programs of student financial aid, including grant and loan programs; the Minnesota-Wisconsin reciprocity agreement; and 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 provides financial support to individuals and organizations: Wisconsin Higher Education Grants; Talent Incentive Grants; Tuition Grants; Indian Student Assistance Grants; Minority Undergraduate Grants; Independent Student Grants; Academic Excellence Scholarships; Minority Teacher Loans; Nursing Student Stipend Loans; the Minnesota-Wisconsin Reciprocity Agreement; and the Contract for Dental Education.

Program Two includes the costs of administering the activities grouped under Program One. It also includes the cost of maintaining the board's loan servicing programs (Wisconsin Health Education Assistance Loans and Wisconsin Student Loans), the contracts associated with the Medical College of Wisconsin, and the funding of administrative costs of the federal Paul Douglas Scholarship program.

Per Wisconsin Statutes (SS 15.03), the Educational Approval Board (EAB) is administratively attached to the Higher Educational Aids Board (HEAB). This attachment requires that EAB's "budgeting, program coordination and related management functions shall be performed under the direction and supervision of the head of HEAB."

WISCONSIN HIGHER EDUCATIONAL AIDS BOARD
ORGANIZATION CHART



HEAB organization chart

HIGHER EDUCATIONAL AIDS BOARD
PROGRAM DESCRIPTIONS

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 for first, second and third year students in 1998-99 is $2,250. The maximum scholarship for all other students is 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.

DENTAL EDUCATION CONTRACT (CAPITATION) PROGRAM
The Dental Education Contract Program allows a finite number of Wisconsin residents to attend the Marquette University School of Dentistry at a "resident" tuition rate. Currently 100 students are able to participate each academic year. Students who meet the program criteria are awarded $11,670 in tuition subsidization.

HANDICAPPED STUDENT GRANT
The Handicapped Student Grant Program was established to provide funding for Wisconsin residents, enrolled at an in-state or eligible out-of-state public or independent institution who show financial need and have a severe or profound hearing or visual impairment. Students are eligible to receive up to $1,800 per year for up to five years.

INDIAN STUDENT GRANT
Awards under this program are made to Wisconsin residents who are at least 25% Native American and are undergraduate or graduate students enrolled in degree or certificate programs at University of Wisconsin, Wisconsin Technical College, Independent Colleges and Universities or Proprietary Institutions throughout Wisconsin. Awards are based on financial need with a limit of ten semesters of eligibility. HEAB has an informal matching arrangement with grant funds awarded by the Federal Bureau of Indian Affairs and Wisconsin Tribal governments.

MINNESOTA-WISCONSIN RECIPROCITY PROGRAM
The MN-WI Reciprocity Program provides tuition reciprocity for Wisconsin residents who enroll in an eligible Minnesota public institution program on a space available basis. Students who qualify pay the established reciprocity fee for course work that is available at public institutions in Wisconsin. Professional students enrolling in a Doctor of Medicine, a Doctor of Dental Sciences, or a Doctor of Veterinary Medicine program are not eligible for tuition reciprocity under this program.

MINORITY RETENTION GRANT
Awards under this program are made to Wisconsin resident minority undergraduates, excluding first year students, enrolled at least half-time in Independent or Wisconsin Technical College institutions. 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. Awards are based on financial need with a maximum grant of $2,500 a year for up to eight semesters or twelve quarters. The University of Wisconsin System has a similar program for students attending those institutions.

MINORITY TEACHER LOAN
The Minority Teacher Loan Program provides loans at 5% interest of up to $2,500 per year to a maximum of $5,000 overall total to Wisconsin resident, minority, undergraduate juniors or seniors who are enrolled full 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 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 29% 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%.

TALENT INCENTIVE PROGRAM GRANT
The Talent Incentive Program Grant provides grant assistance to the most needy and educationally disadvantaged resident students attending colleges and universities in the State of Wisconsin. The maximum award per year for freshmen is $1,800. Upper class students are eligible for up to $1,175 per year if enrolled consecutive terms and continue to show financial need. Eligibility cannot exceed ten semesters. Funding for the TIP Grant is provided by both the State of Wisconsin and the Federal Government.

TEACHER EDUCATION LOAN PROGRAM
The Teacher Education Loan Program provides loans at 5% interest of up to $2,000 to Wisconsin residents enrolled in either the Inservice or Preservice programs at the Milwaukee Teacher Education Center (MTEC). The student who recieves this loan must agree to teach in the Wisconsin school district operating under Chapter 119 of the Wisconsin State Statutes, First Class City School System (currently only the Milwaukee Public Schools). For each year the student teaches in the eligible school district, 50% of the loan is forgiven. If the student does not teach in the eligible district, the loan must be repaid at an interest rate of 5%.

WISCONSIN HIGHER EDUCATION GRANT
The Wisconsin Higher Education Grant Program provides grant assistance to undergraduate, Wisconsin residents enrolled at least half time in degree or certificate programs at University of Wisconsin and Wisconsin Technical College institutions. Awards are based on financial need. Eligibility cannot exceed ten semesters.

WISCONSIN TUITION GRANT
The Wisconsin Tuition Grant Program provides grant assistance to undergraduate, Wisconsin residents enrolled at least half time in degree or certificate programs at Independent Colleges or Universities throughout Wisconsin. Awards are based on financial need and partially based on that portion of tuition in excess of UW - Madison tuition. Grants range from $250 to $2,300 per year. Eligibility cannot exceed ten semesters.

 

HIGHER EDUCATIONAL AIDS BOARD
1999-2001 BIENNIAL BUDGET REQUEST

General Purpose Revenue (GPR) Program Funding
Per the "budget target policy" an increase of zero and one percent over FY99 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.

Based on data collected annually by HEAB, the total unmet need for needy Wisconsin college students in 1996-97 after the family contribution, institutional assistance, federal assistance, and state assistance was taken into consideration was $153,455,601. The financial assistance taken into consideration includes need based employment, loans, and grants. I have included Attachment A which provides more detail related to funding sources.

I have requested additional information from Wisconsin colleges and universities for 1997-98 that will reflect other non-need based resources students and their families may be drawing from. However, based on previous year’s data, unmet need still remains for Wisconsin residents seeking a postsecondary education.

The three programs that serve the largest number of students include the Wisconsin Higher Education Grant (WHEG) with over 35,000 recipients in 1996-97; the Wisconsin Tuition Grant (WTG) with over 9,000 recipients in 1996-97; and the Talent Incentive Program (TIP) Grant with over 4,000 recipients in 1996-97. 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. Please note that the TIP Grant Program which focuses on disadvantaged students has been level funded since 1994-95.

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 Retention 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.

The Dental Education Contract/Capitation provides tuition assistance for 100 Wisconsin resident dental students. 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.

The Academic Excellence Scholarship (AES) which keeps Wisconsin scholars in Wisconsin also serves an important purpose. This program is sum sufficient with a cap of $2,250 per student per year which was initiated in 1996-97. Due to the cap that was implemented, spending for this program for the 1999-2001 biennial period is projected to decrease. Future studies will show whether or not the cap will need to be increased as tuition continues to increase.

The MN-WI Reciprocity Program provided tuition reciprocity for 9,815 Wisconsin residents in 1996-97. This program is also sum sufficient. In 1996-97 the State of Wisconsin's liability was $1,308,114. 1997-98 liability is projected to be between $2,500,000 to $3,000,000. In 1998-99, however, this liability will decrease due to changes that were made to the program agreement and memorandum of understanding. Wisconsin's liability for 1999-2001 is expected to be zero, again, due to the changes made to the agreement and memorandum.

I have included Attachment B which reflects the zero and one percent request for the 1999-2001 biennial period. It also incorporates projected figures for the two programs that have sum sufficient appropriations.

Establishment of a Clerical Assistant 2 Position
A critical staff shortage continues to exist within HEAB. The responsiveness, effectiveness, and efficiency of the agency are in question as staff utilization has gone beyond individual workload capacities. In the 1995-97 Biennial Budget three positions were eliminated as a result of the proposed merger of HEAB with the new Department of Education. When the merger did not occur, the three positions were not re-established. Since that time HEAB has had to rely on temporary help to fulfill clerical assistant permanent full-time duties. Those permanent full-time duties include:

  1. Retrieving and processing mail, both paper and electronic.
  2. Logging electronic mail, which includes student data change requests and voucher requests, onto a data log.
  3. Sending electronic data receipts to colleges and universities once the data is logged and transferred.
  4. Answering all incoming calls to the agency's general telephone number.
  5. Acting as Records and Forms Officer.
  6. Assisting with the preparation of Board reports.
  7. Organizing and filing Administrative Code.
  8. Scheduling.
  9. Assisting with the keying of data for program applications.
  10. Mailing of paper notification lists.
  11. Mailing of electronic monthly memo.
  12. Maintaining agency inventory and ordering of supplies.
  13. Assisting with various other projects as needed.

Over the years HEAB's agency responsibilities have not decreased but rather have increased. Staffing, however, has not increased. In fact staffing has decreased. Attachment C reflects the comparison between agency responsibilities and staffing since 1987. To compensate for the loss of staff, HEAB has reorganized and has streamlined its processes. The agency has also developed, and continues to develop, technologically. In 1998-99 the agency went paperless in terms of file maintenance and voucher request collection. This has helped tremendously in terms of time and cost savings. However, the basic duties of a clerical assistant as described above still remain. It is essential for the operation of the agency to have this position established.

One of the additional responsibilities the agency was given in 1997-98 included the administrative responsibility for the Educational Approval (EAB). HEAB is currently being partially reimbursed for the services provided. It is HEAB's intention to use future reimbursement to fund this permanent Clerical Assistant position. Therefore, a request for funding of this position is not included. This is purely a request for the establishment of the position. Statutory language is also being recommended in connection to this request that incorporates the establishment of an appropriation number. The establishment of an appropriation number will allow the use of reimbursement funds for this position.

 

HIGHER EDUCATIONAL AIDS BOARD
STATUTORY LANGUAGE CHANGES

Contact Person for all HEAB recommendations: Jane Hojan-Clark
Contact Person for all EAB recommendations: Joe Davis

Recommendation One:

Description
Strike S.39.285(3) and "or in a tribally controlled college in this state" under S.39.30(2) which references inclusion of students enrolled in tribally controlled colleges under the Wisconsin Tuition Grant (WTG) Program.

Intent
The 1997-99 Biennial Budget provided that students enrolled at least half-time in a tribally controlled college in Wisconsin be eligible to apply for and receive a WTG. The WTG was originally established as an equalization program for students attending schools whose tuition was greater than a public school's tuition. Currently, the tuition charged at both Tribal Colleges is less than the tuition charged at a public school. In 1997-98, in order for students to show eligibility for a WTG at a Tribal College; the tuition for each of the schools used in the WTG formula mandated by statute had to be artificially inflated. Inclusion of schools with tuition rates lower than public schools in the WTG Program changes the intent of the WTG Program. Separate funding should be identified to meet the need of students attending Tribal Colleges rather than include them in the WTG Program as long as the tuition rate continues to be less than the public school rate. The statutory language change recommended above should occur once a funding source is identified.

205 students from the two Wisconsin Tribal Colleges, College of the Menominee Nation and Lac Courte Oreilles Ojibwa Community College, participated in the Wisconsin Tuition Grant in 1997-98. Those students were awarded and used $158,658 in WTG funds.

Recommendation Two:

Description
Strike S.39.30(3m)(b) which references 122% as the maximum award percentage for the Wisconsin Tuition Grant.

Intent
The 122% is an obsolete maximum award percentage. The factors that affect this award percentage e.g. enrollment, expected family contributions, the number of schools a students applies to, etc., vary to a greater extent than in the past. Due to the fluctuation in these various factors, the award percentage must fluctuate. Therefore, a set award percentage is no longer applicable.

Recommendation Three:

Description
Strike S.39.435(4)(b) which references specific formula language for the Wisconsin Higher Education Grant (WHEG).

Intent
Eliminating this language would allow more flexibility in further developing formulas that would be equitable for both dependent and independent students under the WHEG Program. Currently the maximum WHEG a dependent student attending a University of Wisconsin institution can receive is $1,510. The maximum grant an independent student attending a University of Wisconsin institution can receive is $1,250. The maximum WHEG a dependent student attending a Wisconsin Technical College can receive is $1,300. The maximum grant an independent student attending a Wisconsin Technical College can receive is $1,050. Statutory language will still exist under S.39.435(4)(a) that gives definition for the awarding of grants under the WHEG Program. Also language will still exist under S.36.11(6)(c) and S.38.04(7m) whereby both the University of Wisconsin System and Wisconsin Technical College System will develop and submit to the board, for its review, formulas for the awarding of grants for the upcoming academic year.

Recommendation Four:

Description and Intent
Revise Wisconsin Statutes to reflect the recommended changes that were submitted per the 1997 Act 27, section 9156(1)(h) which identified obsolete and antiquated language. The recommendations are as follows:

Please see Board Report #99-4.

Recommendation Five:

Description
Under S.20.235(1)(d) replace "An amount of $11,330 in the 1993-94 fiscal year and $11,670 in the 1994-95 fiscal year and annually thereafter shall be disbursed under S.39.46 for each Wisconsin resident enrolled as a full-time student." with "An amount of $11,330 in the 1993-94 fiscal year, $11,670 in fiscal years 1994-95 through 1999-2000 and $11,787 in the 2000-01 fiscal year and annually thereafter shall be disbursed under S.39.46 for each Wisconsin resident enrolled as a full-time student."

Intent
This statutory change follows the Dental Education Contract funding request under the GPR Program Funding DIN 4503.

Recommendation Six:

Description
Provide statutory language that incorporates the establishment of a PR Appropriation Number for the Higher Educational Aids Board.

Intent
This statutory language addition follows the Establishment of a CA2 Position request under GPR Administrative Funding DIN 4528.

Attachments A, B, and C

 

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