Board Members Present: Steve Van Ess, Linda Cross, Debra McKinney, Sandra Dercole.

HEAB Staff Present: Jane Hojan-Clark, Jim Buske, John Whitt, Sandy Thomas, Nancy Wilkison.

Others Present: Tom Heffron, WTCSB; Claire Huhn, UW System Administration; Stephanie Hilton, Academic Affairs United Counsel.

Preceding the Regular Board Meeting was a public hearing on the rule revisions proposed for the Talent Incentive Program. Vice-Chairman Steve Van Ess called the hearing to order at 9:00. After a brief description of the revisions and a request for questions, the hearing was closed as no one was in attendance to testify. Steve closed the hearing at 9:10.

Steve called the regular Board meeting to order immediately following the hearing.

APPROVAL OF MINUTES:
The minutes of the August 2, 2002 meeting were briefly discussed, but could not be approved as a quorum of six members was not present.

REPORT OF THE EXECUTIVE SECRETARY:
The WISSISS survey was recently sent to schools and systems to be completed for the 01-02 academic year. This survey tool is used to collect financial aid data from schools, the results of which can be found in February Board Reports. HEAB is in the process of compiling the information at this time.

The reconciliation form which collects information about projected spending for 2002-03 is being sent to schools. This information should give us a better understanding of the status of the spending and will assist in determining whether or not formulas need to be adjusted as well as assist in setting 03-04 formulas.

The High School Counselor Workshops were held in eleven different locations. An internet based presentation was introduced for the first time this year. Hope is that this approach will be expanded in the future. The new Nursing Student Loan, eligibility criteria for the various programs, program participation by various systems, spending statistics for each program and budget concerns were discussed.

HEAB has converted its PC Network system to a non-SASI (Small Agency System Infrastructure). The expectation is that the agency will be able to realize cost savings to meet agency administrative budget reductions. It is also expected that additional flexibility will be available and will enable the implementation of additional streamlined processes such as the electronic applications for various programs.

HEAB’s website shows over 64,000 hits to the site with over 7400 visits. It can be seen that there were more visits during September when postcards were sent out to high school guidance counselors announcing workshop related information on the website. Once we have a years worth of data we will be able to show the yearly cycle of use on the website.

It was requested that Chairman Jeremy Shea be given a certificate of commendation from the governor’s office for his service to the Board. Jane read the document to be presented.

BOARD REPORT #03-06 Talent Incentive Program Recommended Changes
A work group consisting of representatives of the Wisconsin Association of Student Financial Aid Administrators (WASFAA), the Wisconsin Educational Opportunity Programs (WEOP) Office, and the Higher Educational Aids Board (HEAB) began meeting in December of 2001 to discuss possible changes to the Talent Incentive Program (TIP). The intent of the group was to review the program to identify obsolete language and potentially any other necessary changes related to administering the program. A brief discussion was held, but without a quorum action could not be taken at this time.

BOARD REPORT#03-07 Student Aid Expenditures for 2001-02
Major points of this handout were highlighted which details the expenditures for each of HEAB’s programs. For the larger programs such as UW-WHEG, WTC-WHEG, and the Wisconsin Tuition Grant Program there smaller expenditures last year than the prior year due to the late passage of the 2001-03 budget. A moment was taken to mention the good work done by the small HEAB staff who administered over 60,000 awards and over $65 million this year. Appropriated dollars went up by $2 million for 2001-02, but due to the late budget passing some of these funds were carried forward. We vouchered approximately $69 million. After refunds were made in the range of $3 million, the net spent was $65,679,390. Due in part to staff getting the word out about the various smaller programs, the Handicapped Student Grant, the Minority Undergraduate Retention Grant, and the Teacher of the Visually Impaired Grant awarding increased. Due to the large number of applicants there was also an increase in spending in the technical colleges.

BOARD REPORT #03-08 2001-02 ANNUAL ACADEMIC EXCELLENCE SCHOLARSHIP PROGRAM REPORT AND SURVEY RESULTS
Every year HEAB is required to report on the status of the Academic Excellence Scholarship to the Joint Finance Committee by August 1st. It was pointed out that there were not many changes from year to year regarding this program. This year there were 777 freshman scholars. He noted that there were 14 more alternates for the 2002-03 academic year than there were at the end of 2001-02. This is a trend we have seen since the change was made letting students with a lower grade point average receive this award due to weighted grading. Looking at the AES surveys it shows that out of 367 respondents, 174 said that they would remain in Wisconsin for most of their careers. Of 1021 recipients just entering school, 395 stated that receiving the AES did influence their decision to choose a Wisconsin school. It has been discussed before that the cap on the AES stands at $2250 and UW tuition is approaching $4000. It’s not known if the AES will have the same effect in the future.

BOARD REPORT #03-09 2001-02 ANNUAL MINORITY UNDERGRADUATE RETENTION GRANT PROGRAM REPORT AND SURVEY RESULTS
In the 1999-01 Budget Bill we were required to begin reporting yearly on the effectiveness of the Minority Undergraduate Retention Grant. In the second annual report given it was noted that among student recipients surveyed, 88.39 percent indicated that the grant positively affected their decision to return to or stay in school. One hundred percent of the respondents either have earned a degree/certificate or continue to work towards obtaining a degree/certificate. In addition, over 83 percent of the recipients plan on living and working in Wisconsin for their working career. As those numbers are approximately what they were the year before we continue to believe that this program is very effective.

BOARD REPORT #03-10 STATUS OF 2002-03 APPLICANTS AND PROGRAMS
Currently UW-WHEG has committed 123.49% of its appropriation. This is 1550 more awards and .32% less committed than at this time last year. The final commitment for 2001-02 was 134.77%. WTC-WHEG has committed 168.21% of its appropriation. This is 4240 more awards and 23.9% more committed than at this time last year with the final commitment 170.86%. As mentioned earlier, we are ahead in the technical college programs. Last year there were 35,121 applicants and 41,664 this year. That has resulted in over 4000 more awards given out. WTG has committed 115.95% of its appropriation. This is 193 more awards and .22% less committed than at this time last year. The final commitment was 121.95%. The overall number of applicants through October 15, 2002, for 2002-03 is 184,865. Last year at this time there were 169, 543 applicants. Applicants for 2001-02 totaled 193,436.

BOARD REPORT #03-11 2003-05 BIENNIAL BUDGET REQUEST
The Board was asked to look at the Biennial Budget Request B. If funds do become available, financial assistance programs for postsecondary education should become a priority. This chart reflects priorities set by the Board at the last meeting in figures. Also included was the priority order set for increases in particular programs. We are looking for an increase of 14% in 2003-04 and 7% for the 2004-05 academic year. Next the proposed statutory language changes were put forth as required for Decision Item 7005. It was added that another part of the Biennial Budget request and process is HEAB Highlights. It is a publication of pertinent statistical data taken to the meetings with various Legislators from the Joint Committee on Finance, Senate leadership, Assembly leadership, and the two education committees. These meetings will be set up in November and December. A calendar will be sent to members so they may attend any meetings for which they have time. These meetings were highly effective in the last budget process.

FEDERAL PROGRAMS STATUS REPORT
The Senate Appropriations Committee in July reported a bill providing FY03 appropriations for the Departments of labor, HHS and Education. The House Subcommittee has not come to an agreement on a proposed FY03 appropriations bill to date. The House did pass the 6th continuing resolution (CR) lasting through November 22 and the Senate approved the CR as well. The House was preparing to leave Washington and planned to return November 12th. Federal programs are up in the air at this time. The Board will be kept apprised as developments occur.

ELECTION OF 2002-03 BOARD OFFICERS
The election of Board members will be postponed due to lack of a quorum. It was suggested that elections be held after new members have become familiar with other members. This is possible if Steve Van Ess, vice chair, would agree to chair future meetings. As several members terms expire in 2003, the discussion was tabled for the next meeting where a vote can be taken.

NEW BUSINESS
None

Next meetings: February 28, 2003; April 25, 2003; and July 18, 2003. Members were asked to please contact the HEAB office if they are unable to attend.

Steve adjourned the meeting at 10:40.