Board Members Present: Mike Clumpner, Mary Beth Kornely, Gerard Randall, Mary Jo Green, Sandra Dercole for Paul Spraggins, Jeremy Shea, Julie Schaefer, Steve Van Ess, Marques Franklin, Bill Steiger.

HEAB Staff Present: Jane Hojan-Clark, Jim Buske, Mary Lou Kuzdas, Sandy Thomas, Nancy Wilkinson.

Others Present: Andy Nulis, UW System Administration; William Keeton, United Council; Kristen Hendrickson, UW System Administration; Rolf Wegenke, WAICU; Erin Fath, S.B.O. Department of Administration; Merry Larsen, Legislative Fiscal Bureau; Shelly Gardner, WTCS Board; Dan Goyette, Marquette University; David Dies, WAICU; Tess Arenes, AVP UW System Administration; Deborah Mahaffey, WTCS Board; Sharon Wilhelm, UW System Administration; Linda Cross.

The meeting was called to order at 9:10 a.m. by Chairman, Mike Clumpner. Chairman Clumpner also introduced Linda Cross who will be replacing him as the public representative on this Board starting August 1, 2000.

APPROVAL OF BOARD MINUTES

Motion was made by Gerard Randall to approve the minutes of April 28 Board meeting and seconded by Marques Franklin. Approved.

REPORT OF EXECUTIVE SECRETARY

Jane Hojan-Clark updated the Board on new activity. The New Teacher of the Visually Impaired Loan Program is in the process of getting set up. It will go into effect 2000-01.

There have been revisions to the WISSIS Survey Form for collection of data from each of the systems.

The Financial Aid Directors, through the Wisconsin Association of Student Financial Aid Administrators, are reviewing the policy and procedures manual for recommendations and changes. Feedback is due January 1.

The EdVest Program has expanded for 2000-01 to allow families to purchase future tuition at current rates. Funds can be spent on books, room and board as well as tuition. This will go into effect as of August 1. Funds in this program cannot be included in the calculation of state financial aid eligibility. This will require a system of monitoring that needs to be worked out.

BOARD REPORT #00-01 STATUS OF 1999-00 AND 2000-01 APPLICANTS AND PROGRAMS

WHEG - WTCS has made 876 more awards with 9.15% less committed than at this time last year. WHEG - UW has committed 753 more awards and .95% more committed than at this time last year. Jane indicated they would be watching the progress of both systems closely to determine if formula changes need to take place. Mary Jo Green cautioned that it may be premature to change the formula because the effect of the changes in the federal formula are still unknown as to how it will effect the WHEG population. It appears more students are eligible, but we know some students have also lost eligibility. HEAB staff will continue to watch the trends. Wisconsin Tuition Grant has committed 2,620 more awards and 12.26% more committed than at this time last year. The WTG figures already reflect the formula changes.

Total applicants appear to be increasing (1998-99 totaled 163,305; 1999-00 totaled 175,430 and the number through July 21, for 2000-01 is already 18,336).

Jane provided a run down of each program with estimated carry over from 2000-01. The Handicapped Student Grant Program had a substantial amount of carry over for the year. The Indian Student Assistance Grant had carry over because no special project money was spent this year due to timing of when the funds became available. Expectations are that the funds will be spent this year. Minority Retention Grant-Independent Colleges was expected to be spent with some unexpected refunds and will be fully spent by the end of this year. The Minority Retention Grant-WTCS was spent 100%. The Minority Teacher Loan had unexpected refunds, so there will also be some carry over in this program.

BOARD REPORT #01-2 2001 2003 BIENNIAL BUDGET ISSUES

Jane has visited Wisconsin colleges and universities to discuss individual needs at the campuses and the common thread that exists across the state for educational needs. The mission of the agency is to provide access to higher education for residents of Wisconsin. HEAB's policies are primarily based around need-based programs, merit-based programs or specific needs of the State. The budget instructions indicate a 0% increase the first year and a 1% increase for the next year. The instructions also indicate an expected 5 % decrease. The approach that the Staff has taken was the 0% and 1% increase but then have a list of priorities so that if money should be available, there was a plan in place.

The Executive Secretary's recommendation that the number one priority, based on the discussions she had with the schools, should be to meet the proportion of financial need today that was met by the programs ten years ago and to increase grants to their statutory maximum (TIP and WHEG to the maximum of 1800). Mary Jo Green made a motion, seconded by Jeremy Shea, to recommend increases in the WHEG, WTG and TIP grants to their statutory maximums and to meet the proportion of financial need today that was met by the programs 10 years ago, as the number one priority because of the increased number of applicants, more financial need and limited financial resources, and to support our commitment to provide access to Wisconsin residents before anything else.

A discussion on the motion followed. Steve Van Ess suggested another measure to add, which has also been looked at in the past, which is to keep pace with tuition increases. Bill Steiger asked what that would mean as a percentage increase and/ or dollar amount increases. Jane provided figures demonstrating the increase based on the current statutory maximum: WTCS WHEG - 112% increase; UW WHEG - 59% increase; TIP - 59% increase. To meet the same proportional financial need, the increase would have to be 12% for all programs. President Clumpner requested clarification from Steve Van Ess in regard to his comments on adding the pace of tuition increases. Steve Van Ess offered an amendment to the motion with the goal to achieve the statutory maximum of $1800 to meet the same proportional need today comparable to 10 years ago with at least each program being increased by the amount of tuition increases as funds are available. The motion read as amended: "The Board is in agreement to recommend funding increases in WHEG and TIP to bring the grant amounts up to the statutory maximum of $1,800; to meet the same proportional financial need for TIP, WHEG and WTG as was met 10 years ago; and, at a minimum, keep pace with tuition increases for all programs."

Roll call vote. 9-1 passed.

WI Tuition Grant - The recommendation was made to eliminate t