HB 1865 -- HIGHER EDUCATION

SPONSOR:  Bearden

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Student Achievement and Finance by a vote of 5 to 3.

This bill revises the laws regarding several student assistance
programs and makes changes to appropriations and oversight for
public higher education based on student assistance and
institutional performance.

The Access Missouri Scholarship Program is established to provide
assistance to college freshmen who are not eligible for the A+
Program or have chosen institutions not covered by the A+
Program.  The maximum award will be $1,000, phased in over four
years.  The new program, as well as the Gallagher, Guarantee, and
Bright Flight programs, has a 2.5 grade point average requirement
for renewal.  The 2.5 initial qualifying grade point average and
extracurricular activity for the Guarantee Program are
eliminated.  Obsolete language is deleted, and the Gallagher
Program's criminal background disqualifications are changed to be
the same as those in the Guarantee Program.

The bill sets the 2001 fiscal year's operating appropriation as a
starting point for a change in the way appropriations are made.
Once the 2001 level is achieved, appropriations will be directed
toward student assistance programs rather than institutional aid,
until the main assistance programs are fully funded.  At 75% and
100% of full assistance funding, the General Assembly may
consider resetting appropriations levels.  Five major performance
measures will be developed by the Department of Higher Education
in conjunction with higher education institutions.  Institutions
will enter into performance contracts for up to five years.

Beginning July 1, 2007, the Coordinating Board for Higher
Education will be responsible for several aspects of education
delivery, including areas where the cost of services may not be
met by tuition, through annual fee-for-services contracts with
public and private institutions.

A 14-member Joint Committee on Higher Education is established to
disseminate the data from the contracts and changes in the
assistance programs.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$3,077,178 to Unknown in FY 2007, $5,846,533 to Unknown in FY
2008, and $8,840,822 to Unknown in FY 2009.  No impact on Other
State Funds in FY 2007, FY 2008, and FY 2009.

PROPONENTS:  Supporters say that the bill puts the focus of
funding on students, rather than institutions, and involves
institutions in setting a few key goals for performance funding.
It offers access and more consistency across aid programs and
provides a feedback mechanism to get higher education data back
to the legislature, giving higher education issues a higher
profile.

Testifying for the bill was Representative Bearden.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say that not knowing how
long it will take before scholarships are fully funded puts the
institutions in an awkward position.  It could take as long as
five years just to get back to the 2001 level to start the whole
process.  It may ultimately shift funding from public four-year
schools to other educational sectors.

Others testifying on the bill were University of Missouri System;
Missouri State University; and Associated Students of the
University of Missouri.

Becky DeNeve, Senior Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:44 am