Hawaii-2018-SB1020-Introduced

SECTION 1. The legislature finds that the University of Hawaii's Hawaii graduation initiative is a systemwide strategic initiative endorsed by the board of regents with a goal to increase the educational capital of the state by increasing the participation and completion of students, particularly native Hawaiians, low-income students and those from underserved regions and populations, and preparing them for success in the workforce and their communities.

The legislature further finds that an educated labor force and engaged citizenry are essential in today's global, knowledge-based economy. Across the nation, states have set ambitious goals to boost college completion rates. Hawaii's own 55 by '25 Campaign goal focuses on increasing the percentage of working age adults with two- or four-year degrees to 55 per cent by 2025. According to the most recent data available, 44 per cent of Hawaii's working age adults have a postsecondary degree. As the State's sole public higher education system, the University of Hawaii is committed to doing its part to close the State's projected educational attainment gap.

In April 2016, the Institute for Research on Higher Education at the University of Pennsylvania graduate school of education issued a study that analyzed college costs in relation to family income level. The study revealed how higher education has gone from expensive to unaffordable for most low- and middle-income families. According to this same study, Hawaii ranked third in the nation for overall college affordability and noted that the University of Hawaii community colleges are the most affordable public two-year institutions in the nation.

The report further acknowledged that despite Hawaii's overall high affordability ranking, attending college was a big expense for families earning less than $30,000 annually; that Hawaii's financial aid policies did little to alleviate costs for these families; and that the State provided minimal need-based aid to students attending public institutions.

Although the State does not budget for scholarships, University of Hawaii policy requires that a minimum percentage of tuition revenue be set aside for need-based scholarships, including 8.8 per cent at the community colleges. The University provided $46,700,000 in tuition-funded financial aid during 2014-2015, including $6,300,000 at the community colleges. Even though financial aid through federal Pell Grants, University of Hawaii and private scholarships, the GI Bill for service members and veterans, and employers cover much of the cost for need-based students, cost is still a barrier for certain need-based students.

The purpose of this Act is to establish a Hawaii Promise program to provide scholarships initially for the unmet need of qualified students enrolled at any University of Hawaii community college and to provide an appropriation to establish and implement the program.

SECTION 2. Chapter 304A, part IV, subpart A, subdivision 1, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§304A- Hawaii Promise program; established. (a) Notwithstanding section 304A-502, there is established the Hawaii Promise program to be administered by the board of regents. The program shall provide scholarships for the unmet direct cost need of qualified students enrolled at any community college campus of the University of Hawaii.

(b) A student enrolled in a community college campus is eligible for scholarship consideration if the student meets the following requirements:

(1) Qualifies for Hawaii resident tuition;

(2) Completes and submits the Free Application for Federal Student Aid (FAFSA) for each academic year, and accepts all federal and state aid, grants, scholarships, and other funding sources that do not require repayment;

(3) Is enrolled in a classified degree or certificate program with six or more credits per semester;

(4) Maintains satisfactory academic progress, as defined by the Federal Title IV requirements and determined by the campus in which the student is enrolled; and

(5) Has been determined by the campus to have unmet direct cost needs.

(1) On a first come first served basis;

(2) In an amount equal to the student's unmet direct cost based on the FAFSA calculation of need minus what is available from Federal Pell Grants and other scholarships; and

(3) To the extent funds are available to support the scholarship award.

(d) As used in this section "direct cost" shall include tuition, fees, books, supplies, and transportation."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $2,500,000 or so much thereof as may be necessary for fiscal year 2017-2018 and the same sum or so much thereof as may be necessary for fiscal year 2018-2019 to the board of regents of the University of Hawaii for the establishment and implementation of the Hawaii Promise program, including the provision of the scholarship.

The sums appropriated shall be expended by the University of Hawaii System for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act, upon its approval, shall take effect on July 1, 2017.

INTRODUCED BY:

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BY REQUEST

THE SENATE	S.B. NO.	1020
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII