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February 2001 Board Meeting Agenda         July 2001 Board Meeting Agenda         Board Reports Index

Meeting Minutes

February 16, 2001

 

Board Members Present: Jeremy Shea, Sr. Mary Beth Kornely, Mary Jo Green, Kurt Hinrichsen, Steve Van Ess, Sandra J. Dercole for Paul Spraggins and Gerard Randall via phone.

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

Others Present: Tom Heffron, WTCSB; David Dies, WAICU; Tom Rabe, WCTC; Don Seymour, Lakeland College; Carla Smith-Liebich, Marquette University; Kathy Sahlhaff, UW-Eau Claire; Beth A. Resech, UW-Stout; Andy Richards, UWSA; Kristen Hendrickson, UWSA; William Keeton, United Council of UW Students; Deborah Mahaffey, WTCS Board; Margaret Zitzer, Marquette University; and Sharon Wilhelm, UW System Administration.

Chairman, Jeremy Shea, called the meeting to order at 9:10 a.m.

APPROVAL OF BOARD MINUTES
Motion was made by Sandy Dercole to approve the minutes of October 27, 2000 Board meeting and was seconded by Steve Van Ess. Approved.

REPORT OF EXECUTIVE SECRETARY
The Board was updated on new activity. On January 2, 2001 a press release was sent out to over 380 news organizations around the state encouraging students to apply for assistance early. To our knowledge, this had not been done before. HEAB did receive some feedback from local TV and radio stations. In the future, more of this type of information will be sent out in the same manner.

We are continuing to work on the implementation of EFT and the electronic MN-WI Reciprocity application. We also continue to work on converting paper processes to electronic processes and to eliminate duplication.

Legislative visits will be scheduled beginning the week of February 26th. Each Board member will be sent the schedule as appointments are made in order to determine which appointments you will be able to participate in.

Dental Access Legislative Council Committee has been meeting and discussing the dental shortage. A number of proposals have been made. At this point in time it appears that the dental capitation request included in our version B budget papers will be included in a bill independent of the budget bill.

HEAB has already received 01-02 student data. We have reviewed the file lay out and are in the process of updating our mainframe system which will allow us to begin processing for next year.

1999-00 MINNESOTA-WISCONSIN RECIPROCITY PROGRAM DATA
There has been an increase in Wisconsin students attending Minnesota schools in the last decade. When looking at the statistics broken down by college, it was found that there is a broad distribution of Minnesota students attending Wisconsin colleges, but the majority of Wisconsin students appear to primarily attend two main Minnesota schools. Both Jeremy Shea and Steve Van Ess have received positive feedback on the program and suggest that it be expanded.

WHEAL PROGRAM STATUS AND AUDIT REPORT FOR FISCAL YEAR 2000
There has been an average of an 18% decrease in the number of borrowers the past two years in the WHEAL Program. Most of the students still left in the program have significant balances and a few are still consolidating their loans.

WISCONSIN STATE STUDENT FINANCIAL AID DATA FOR 1999-00
HEAB met with representatives of all three of the different Wisconsin Higher Education Sectors to get their input for the annual WISSIS report. This system of gathering information went smoothly and it will be repeated in March. Jim Buske touched on one or two facts in each section of the report. Steve Van Ess wondered if each of the systems would get to review the information using the new format and the answer was affirmative.

STATUS OF 2000-2001 APPLICANTS AND PROGRAMS
WHEG-UW: This program gave out 833 more awards than at this time last year. At this point in time it is projected that there may be as much as $1.1 million to be used as supplemental grants for the current academic year and for summer school.

WHEG-WTC: This program gave out 5,276 more awards than this time last year. At this point in time it is projected that there may be as much as $400,000 to be used as supplemental grants for the current academic year and for summer school.

WISCONSIN TUITION GRANT: This program gave out 2,829 more awards than this time last year. It appears that awards will not need to be reduced given the level of spending in the program.

APPLICANTS: The number of FAFSA filers is ahead of last year at this time. The numbers are already at 200,000 applicants over the 189,000 who applied at this time last year.

Included in the handout was a chart broken down by program that showed the 2000-01 dollars spent, total appropriations, remaining funds and percentage of funds spent in 1999-00 vs. percentage of funds spent as of February 9, 2001 for 2000-01.

Gerard Randall joined the proceedings via conference call at 9:50 a. m.

2001-02 PROGRAM REDUCTION PLAN
HEAB has been asked to develop a plan that would accommodate a 5% reduction in GPR appropriations. Jane recommended that HEAB submit a plan that includes a possible 5% across the board cut since each program was considered an equal priority. It was requested that a plan be developed but it was not requested that it be sent. The Board did approve the plan of an across the board cut.

2001-03 BIENNIAL BUDGET TALKING POINTS
In preparation for the upcoming Legislative meetings some handouts were prepared to help shape the focus of those meetings. Some basic concepts to be covered are the growing need for financial aid, need left unmet, Wisconsin's ratings both nationally and with its neighbors, and student debt incurred.

REPORTS ON FINANCIAL AID PROGRAMS

Report on Financial Aid Programs for Higher Education in the State of Wisconsin: This booklet contains the basic story of HEAB programs. It outlines student college financial assistance available to Wisconsin residents. It was prepared in order to improve program monitoring and management through the use of performance outcome data. Jane touched briefly on each set of statistics.

Wisconsin College Student Financial Aid Applicants, Recipients, and Funding Reported by Legislative District: This will be of particular interest to Legislators as it breaks down the financial aid statistics by district. They will be able to see the number applicants and amount of aid awarded in each district.

2001-02 WISCONSIN HIGHER EDUCATION GRANT AND WISCONSIN TUITION GRANT PROGRAM FORMULAS
Jane presented the WHEG and WTG program formulas for Board consideration. Though the general structure of the WHEG formula is outlined in the State Statutes, the components may be adjusted to incorporate changes in the cost of education, the Federal Methodology which determines the Expected Family Contribution, the number of applicants which relates to the number of students who enroll, and the available funding.

WHEG-UW
Jane offered two formula simulation options for Board consideration. Simulation #1 would increase the maximum award by $60 and increase the student budget by $120 to spend just beyond the projected 2000-01 unspent. Simulation #2 would increase the maximum award by $46 and increase the student budget by $290 to spend just beyond the appropriation, the goal being to tie the student budget to actual tuition. Jane asked the Board to approve Simulation #2, as it will cut down any fluctuation between the years. Gerard Randall moved to adopt Simulation #2 and Steve Van Ess seconded the motion. A unanimous vote approved the recommendation.

WHEG-TC
Two simulation options were given for the WHEG-TC. Simulation #1 would increase the maximum award by $30 to spend just beyond the projected 2000-01 unspent. Simulation #2 would increase the maximum award by $70 to spend more substantially beyond the appropriation. Jane proposed to approve the concept of Simulation #2 pending further information gathering and discussion by HEAB staff with the Wisconsin Technical College System Board. Barring any major deviation from the formula, Simulation #2 was unanimously approved in concept.

WHEG-TRIBALMBR> Jane reported that a waiting list exists for these funds. However, it is expected that students will be released by the end of the 2000-01 year. Her recommendation is to leave the formula as it is. Steve Van Ess moved to retain the same formula. Sr. Mary Beth Kornley seconded the motion and it was unanimously approved.

WISCONSIN TUITION GRANT
Simulation #1 includes estimated 2001-02 school tuition amounts. All other formula factors are the same as 2000-01. Simulation #2 includes estimated 2000-01 school tuition amounts and Inflation factors increased by 17%. Jane recommends the formula elements remain the same as they were in 2000-01 using Simulation #2. However, the Inflation factors will most likely need to increase by more than the 17% reflected in Simulation #2. HEAB would like to run another set of simulations once they get a chance to see the Governor's proposed budget. Sr. Mary Beth Kornely moved to adopt the recommendation and was seconded by Kurt Hinrichsen. It was unanimously passed.

HEAB POLICY AND PRODECURE
Jim Buske presented the new Policy and Procedure Manual to the Board. It is available as an on-line document at the HEAB website located at www.heab.state.wi.us. He thanked staff for their assistance in gathering the information for the document. Sr. Mary Beth Kornley added her commendation and moved to adopt the Policy and Procedure Manual. Mary Jo Green seconded the motion and a unanimous vote to accept was taken.

Gerard Randall signed off the conference call at 11:30 a.m.

HIGHER EDUCATIONAL AIDS BOARD FEDERAL PROGRAMS STATUS REPORT
Jane discussed certain points in a handout regarding Federal Programs; in particular the FY01 Appropriations Bill that includes funding for the programs administered by the Department of Education that was signed by the President December 21, 2000. Pell Grants experienced a 14.6 increase in funding along with a maximum award increase of $450.

The new President's budget proposal will be released in March. President Bush appointed Dr. Roderick Paige to be the United States Secretary of Education. There has been discussion that the President's proposal will include $25 billion over five years for the "Leave No Child Behind" initiative and a Pell Grant Program increase of $1 billion in FY02.

NEW BUSINESS
There was a short discussion initiated by Steve Van Ess concerning student credit card debt. He said that the undergraduate credit card debt for 1998 was on average $1879 and up to $2748 in 1999.

After a few brief comments a motion was made to adjourn the meeting by Mary Jo Green and was seconded by Kurt Hinrichsen.

The meeting was adjourned.

 

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