ISAC State Legislative Update

Katharine Gricevich
Special Assistant to the Executive Director
May 14, 2008

In recent days, this dreary budget picture has become especially bleak for Illinois community colleges and public universities: The Governor’s Office has warned that he will likely call for a rescission of some funds appropriated to higher education for FY08. That is, public higher education institutions could be unable to spend a portion of their FY08 appropriated funds. Quoted in the Chicago Tribune’s “Clout Street” Web log, Michael Monaghan, executive director of the Illinois Community College Trustees Association, asserted that the Governor’s Office has indicated that all community colleges will lose the June payment that makes up about 8.3 percent of this year's budget. Likewise, university officials reported to the House’s Higher Education Appropriations Committee that they were warned of a probable 12% rescission in FY08.

In other budget news, the Governor has released funds appropriated to the Illinois Community College Board for FY08 Illinois Veteran Grant reimbursements to schools in that system. (Regardless of the IVG appropriation’s being split between ICCB and ISAC, it is still only necessary for schools to submit their IVG claims to ISAC. ISAC staff will continue to process IVG claims and are working with ICCB to ensure their proper payment.)

While the two chambers of the General Assembly are crafting separate budgets, and bills move through the process towards becoming Public Acts, work continues on the State’s “Public Agenda for Illinois Higher Education.” Again, this document is intended to be a planning blueprint to guide State policies and resources to the higher education and career needs of Illinois residents and to address the economic needs of the state.

Information on this multi-stage process and a schedule of upcoming meetings, including a regional forum series during the month of June, are available at the IBHE website, www.ibhe.org. ISAC is involved in these discussions, and interested parties may contact our office or IBHE with questions, comments or concerns regarding this initiative. As ISAC Executive Director Andy Davis recently told a gathering of the Illinois Association of Student Financial Aid Administrators, “We know how important student financial aid is to preserving education access, and because of that I think it’s really important that the voices of the financial aid community are part of this project, advocating on behalf of students.”

The information below will be updated as pending bills move through the process, but for the most up-to-date information you may refer to the General Assembly’s Legislative Information Service, which maintains records of legislative activity online at http://www.ilga.gov/. Questions regarding state legislative activities may also be directed to Trena Sabo at 217.782.6920 or tsabo@isac.org.

The General Assembly’s adjournment is currently scheduled for May 29, 2008—although, notably, the General Assembly has yet to adjourn its session from Spring 2007.

House Bills

HB 1334 (Flowers/Martinez) – The Illinois Future Teacher Corps (IFTC) and the private, not-for-profit Golden Apple Scholars of Illinois program have similar goals—primary among them increasing the Illinois supply of qualified teachers—but they do serve slightly different populations. Golden Apple Scholars are generally traditional, dependent college students, whereas IFTC recipients are more likely to be independent students and less likely to be enrolling directly after high school. Broadly speaking, Golden Apple provides less financial support to participants than IFTC, but the private program accompanies the award with opportunities for mentoring, training, and support that are not available through IFTC. Golden Apple is also currently focused on the Chicago area, whereas IFTC has a broader geographic reach.

Senate Amendment #2 to HB 1334 would have replaced this bill’s original language regarding a youth program within the Chicago Public Schools with new provisions. The amendment would have gradually phased out IFTC, with funds that would have gone to that public program instead being used to support Golden Apple.

The sponsor has since filed a separate amendment, however. SA #5 would preserve both programs but reserve 200 IFTC awards for participants in the Golden Apple Scholars program. The Golden Apple Scholars will thereby receive larger awards ($5,000-$15,000 per person per year rather than the current $2500 per person per year), and the Golden Apple Foundation will be able to redirect funds currently used for stipends to providing participants with additional services.

If the Senate amendment is approved, the amended bill will be returned to the House for consideration.
Senate Higher Education Committee approves SA#2.
Senate Higher Education Committee approves SA #5.
Senate floor – 3rd Reading.
Passed Senate 51-0-0.

HB 4156 (Franks) – Individuals who redeem their College Savings Bonds and use 70% of the proceeds for education within Illinois may apply to receive additional funds from the Bonus Incentive Grant (BIG) program, which was intended to help lower financial barriers to college access. Under current ISAC rule, the bond beneficiary may apply for a bonus grant when he or she enrolls in school. If the bonus is not awarded in that year due to insufficient state funding, the beneficiary may apply again the following year. This bill would prohibit the Commission from imposing an “expiration date” on eligibility for the Bonus Incentive Grant, thereby allowing an applicant to apply each year, regardless of whether the beneficiary is still in school at the time. The bill would also prohibit limits on the number of Illinois College Savings Bonds that an individual could purchase. See also HB 4193 and HB 4790.
Bill tabled by sponsor.

HB 4193 (Franks / Althoff) – Individuals who redeem their College Savings Bonds and use 70% of the proceeds for education within Illinois may apply to receive additional funds from the Bonus Incentive Grant (BIG) program, which was intended to help lower financial barriers to college access. Under current ISAC rule, the bond beneficiary may apply for a bonus grant when he or she enrolls in school. If the bonus is not awarded in that year due to insufficient state funding, the beneficiary may apply again the following year. This bill would prohibit the Commission from imposing an “expiration date” on eligibility for the Bonus Incentive Grant, thereby allowing an applicant to apply each year, regardless of whether the beneficiary is still in school at the time. See also HB 4156 and HB 4790.
House Higher Education Committee approves.
Passed House 111-0-0.
Senate Rules Committee.

HB 4567 (Brady) – This bill requires ISAC to conduct a study on the enrollment and admissions patterns for students who are designated by the agency as Illinois State Scholars for their academic achievement in high school. State Scholars generally represent the top 10% of a high school graduating class.
Passed House 115-0-0.
Senate Higher Education Committee – May 14, 4:00p.m., Capitol Building Room 409

HB 4606 (Patterson) – HB 4606 would allow use of the General Assembly Scholarship at “trade schools,” which are not defined by the bill. However, the G.A. Scholarship is not a funded program but rather a waiver granted by a public university at the direction of a General Assembly member. If “trade school” were defined to include private institutions, the bill would raise questions about whether the state can compel private institutions to grant tuition waivers.
Re-referred to House Rules Committee.

HB 4621 (W. Davis) – The bill would require public universities to accept any student who graduates within the top 10% of an Illinois high school’s graduating class and to offer that student any remediation he or she is determined to need. In addition to restricting admissions offices’ discretion in filling a freshman class, the bill places no restrictions on where a student might enroll, so some campuses may not have enough seats to accommodate the students whom they may be required to admit under the bill. The sponsor’s stated goal is to draw attention to disparities among high schools in how well they prepare their graduates for college.
Re-referred to House Rules Committee.

HB 4625 (Stephens) – Veterans who qualify for the current Illinois Veteran Grant program have their tuition and fees waived by public higher education institutions in Illinois. This bill would add 50% of a veteran’s textbook costs to the existing entitlement. ISAC staff estimate that this addition could add $5 million or more each year in costs statewide. Notably, institutions are not fully reimbursed by the state for revenues that they forego under the current IVG program. However, while the schools currently forego revenues on behalf of veterans, covering 50% of veterans’ textbook expenses could require them actually to pay out funds. The sponsor has stated that he does not intend to bring the bill for a vote by the full House chamber unless reimbursement levels are increased for the current IVG program.
House Higher Education Committee approves.
House floor – 2nd reading.

HB 4732 (Burke) - House Bill 4732 protects the State against abuses in Illinois’s 529 college savings and prepaid tuition plans by providing for “recapture,” i.e., the taxation of funds withdrawn from a 529 plan that are not used to pay for educational expenses. As amended, the bill provides an exception for funds that are spent on non-qualified expenses because the beneficiary has died, been permanently disabled, or been granted a scholarship that covers his or her qualified educational expenses. Also see SB 1995.
House Higher Education Committee approves.
Passed House 84-20-0.

HB 4790 (May) – The original bill would have provided for $200 to be given to each participant in the College Illinois!SM Prepaid Tuition Program. House Amendment #1 would delete and replace that language, instead requiring ISAC to prorate each year’s appropriation for Bonus Incentive Grants and allow eligibility for the grant to roll over indefinitely. Also see HB 4156 and HB 4197.
House Higher Education Committee approves.
House floor – 2nd reading.

HB 4843 (Reis) – As amended, this bill would create a veterinary loan repayment program available to students of the University of Illinois, which shall administer the program. The goal of the bill is to increase Illinois’s supply of large-animal veterinarians. The bill is subject to appropriation of funds by the General Assembly.
House Agriculture & Conservation Committee approves.
Passed House 109-0-1.
Senate Rules Committee.

HB 5059 (Brosnahan) – In its original form, HB 5059 would establish a new nurse educator scholarship program to be administered by the Department of Public Health, direct DPH to establish a database of available nurse educator positions in the state, and create a grant program for schools to expand nursing faculty. This effort to increase the number of nursing faculty in Illinois seems to duplicate at least some functions of existing programs at ISAC, IBHE, and IDFPR. The bill does not repeal or delete sections of the statute regarding existing programs. HA #1 deletes the provisions regarding grants for institutions and increases the amount of funding set aside annually from the Nursing Dedicated and Professional Fund for nursing scholarships.
House Human Services Committee approves.
Passed House 114-0-0.

HB 5109 (Miller/Maloney) – This bill would create the MAP Challenge Program, a pilot program modeled after Indiana’s 21st Century Scholars program. Subject to appropriation, the pilot would be developed jointly by ISAC, IBHE, ICCB, and ISBE. The program must include cooperation between school districts and State agencies in outreach and student services and must include minimum course requirements. Students who successfully complete the program must be provided with an incentive in the form of State financial aid. The program is intended to reduce high school drop-out rates, increase readiness for work and higher education, and improve college-going rates to reduce the financial burden on students and their families. The pilot program is intended to accomplish these purposes by linking student financial aid and factors that may improve college readiness.
House Higher Education Committee approves.
Passed House 108-0-0.
Senate Rules Committee.

HB 5542 (Brauer) – Subject to appropriation, the bill requires ISAC to create a pilot program of incentives for teachers and support staff (e.g., school counselors) to earn certification in behavioral analysis from the Behavior Analysis Certification Board, a national accrediting body. The bill does not specify details for the mandated pilot program or the incentives that may be offered. In 2007, an identical bill passed the House unanimously but was never called for a vote in the Senate.
Re-referred to House Rules Committee.

HB 5905 (Schock / Hultgren) – The bill asserts that members of the military and their dependents who lived in Illinois immediately before the military member started active duty service are eligible for in-state tuition at public universities.
Passed House 115-0-0.
Senate Higher Education Committee – May 14, 4:00p.m., Capitol Building Room 409

HB 6137 (Madigan) – This bill contains the Governor’s recommendation for FY09 funding for the Illinois Student Assistance Commission. The Governor has proposed level funding (i.e., no increase or decrease in appropriations as compared to FY08) for the programs that ISAC administers.
House Rules Committee.

HJR 100 (Chapa La Via and All Members of the House) – This resolution commissions a bi-partisan task force on the status of underrepresented minorities in higher education to evaluate the status of traditionally underrepresented populations, specifically African Americans, Latinos, and Native Americans, in this State's public and private institutions of higher education. The task force would include ISAC’s executive director or his designee.
House Higher Education Committee approves.
House calendar, order of resolutions.

SB 1908 (Maloney) - SB 1908 would increase the statutory maximum MAP award from its current level of $4968 to $5468 in FY09, $5968 in FY10, and $6468 in FY11. Any increase in the size of the maximum award would be granted only if it is matched by an increase of the same percentage for MAP recipients not eligible for the maximum award. Fully funding this change would require approximately $40 million in additional funding for MAP each year for the next three years. The maximum award was last increased in FY2002.

If new funds for MAP were available, increasing the maximum award as proposed in SB 1908 is one of several possible ways to distribute the money. Alternatives would include extending processing for MAP and updating the tuition and fee costs used in the MAP formula. (A $40 million increase would allow the use of current tuition and fees and in the MAP formula.)

The bill would also delete language that currently restricts awards to covering two semesters or three quarters per student per academic year.

Senate Amendment #2 would restore the restriction on the number of semesters or quarters that may be covered in a year, and it would specify that the maximum award will be increased only “subject to appropriation.”
Senate Higher Education Committee approves.
Senate Higher Education Committee – May 14, 4:01 p.m. Capitol Building Room 409

SB 1923 (Schoenberg/Currie) - This bill would establish a Public Interest Attorney Loan Repayment Assistance Program administered by ISAC in cooperation with an advisory committee made up of lawyers and law school representatives. Disbursement of awards would be in the form of forgivable loans. The bill is subject to appropriation. The bill is identical to SB 2076, which remains in the Senate.
Passed Senate 51-0-0.
House Judiciary I-Civil Law Committee – May 14, 9:00a.m. Stratton Building Room C-1

SB 1981 (Clayborne/Mautino) - SB 1981 encourages the Illinois Student Assistance Commission to enlist employers in providing matching donations to their employees’ prepaid tuition plans, and it creates a new tax incentive for employers to do so. The bill would allow Illinois employers to claim a tax credit, up to a maximum of $500, for one-fourth of the amount they contribute each year toward their employees’ College Illinois!SM prepaid tuition contracts or Bright Start college savings plans. The credit sunsets in 2019.
Senate Revenue Committee approves.
Passed Senate 50-0-0.
House Rules Committee.

SB 1995 (Bond/Burke) – SB 1995 would include in an individual’s adjusted gross income any amounts that are withdrawn from a 529 college savings or prepaid tuition program for purposes other than education expenses. Also see HB 4732.
Senate Revenue Committee approves.
Passed Senate 57-0-1.
House Rules Committee.

SB 2076 (Cullerton) - This bill would establish a Public Interest Attorney Loan Repayment Assistance Program administered by ISAC in cooperation with an advisory committee made up of lawyers and law school representatives. Disbursement of awards would be in the form of forgivable loans. The bill is subject to appropriation. See also SB 1923.
Re-referred to Senate Rules Committee.