General Purpose Revenue (GPR) Program Funding
Per the "budget target policy" an increase of zero and one percent over FY99 GPR Program Funding is being requested. However, if funds do become available, financial assistance programs administered by the Higher Educational Aids Board (HEAB) for postsecondary education should become a priority.

Based on data collected annually by HEAB, the total unmet need for needy Wisconsin college students in 1996-97 after the family contribution, institutional assistance, federal assistance, and state assistance was taken into consideration was $153,455,601. The financial assistance taken into consideration includes need based employment, loans, and grants. I have included Attachment A which provides more detail related to funding sources.

I have requested additional information from Wisconsin colleges and universities for 1997-98 that will reflect other non-need based resources students and their families may be drawing from. However, based on previous year’s data, unmet need still remains for Wisconsin residents seeking a postsecondary education.

The three programs that serve the largest number of students include the Wisconsin Higher Education Grant (WHEG) with over 35,000 recipients in 1996-97; the Wisconsin Tuition Grant (WTG) with over 9,000 recipients in 1996-97; and the Talent Incentive Program (TIP) Grant with over 4,000 recipients in 1996-97. All three programs are awarded primarily based on the student's financial need. Funding priority should be particularly given to these three programs on an equal basis. Please note that the TIP Grant Program which focuses on disadvantaged students has been level funded since 1994-95.

Other programs administered by HEAB that are based on students' financial need along with more specific criteria include the Handicapped Student Grant, Indian Student Grant, Minority Retention Grant, Minority Teacher Loan, and the Teacher Education Loan Program. Although smaller in scope in terms of the number of Wisconsin residents targeted, these programs are still essential in providing access to a postsecondary education in Wisconsin. Please note that several of these programs have also been level funded over the past several years.

The Dental Education Contract/Capitation provides tuition assistance for 100 Wisconsin resident dental students. The amount of assistance per student has remained level since the 1994-95 academic year even though costs over the same time period have increased.

The Academic Excellence Scholarship (AES) which keeps Wisconsin scholars in Wisconsin also serves an important purpose. This program is sum sufficient with a cap of $2,250 per student per year which was initiated in 1996-97. Due to the cap that was implemented, spending for this program for the 1999-2001 biennial period is projected to decrease. Future studies will show whether or not the cap will need to be increased as tuition continues to increase.

The MN-WI Reciprocity Program provided tuition reciprocity for 9,815 Wisconsin residents in 1996-97. This program is also sum sufficient. In 1996-97 the State of Wisconsin's liability was $1,308,114. 1997-98 liability is projected to be between $2,500,000 to $3,000,000. In 1998-99, however, this liability will decrease due to changes that were made to the program agreement and memorandum of understanding. Wisconsin's liability for 1999-2001 is expected to be zero, again, due to the changes made to the agreement and memorandum.

I have included Attachment B which reflects the zero and one percent request for the 1999-2001 biennial period. It also incorporates projected figures for the two programs that have sum sufficient appropriations.

Establishment of a Clerical Assistant 2 Position
A critical staff shortage continues to exist within HEAB. The responsiveness, effectiveness, and efficiency of the agency are in question as staff utilization has gone beyond individual workload capacities. In the 1995-97 Biennial Budget three positions were eliminated as a result of the proposed merger of HEAB with the new Department of Education. When the merger did not occur, the three positions were not re-established. Since that time HEAB has had to rely on temporary help to fulfill clerical assistant permanent full-time duties. Those permanent full-time duties include:

1. Retrieving and processing mail, both paper and electronic.
2. Logging electronic mail, which includes student data change requests and voucher requests, onto a data log.
3. Sending electronic data receipts to colleges and universities once the data is logged and transferred.
4. Answering all incoming calls to the agency's general telephone number.
5. Acting as Records and Forms Officer.
6. Assisting with the preparation of Board reports.
7. Organizing and filing Administrative Code.
8. Scheduling.
9. Assisting with the keying of data for program applications.
10. Mailing of paper notification lists.
11. Mailing of electronic monthly memo.
12. Maintaining agency inventory and ordering of supplies.
13. Assisting with various other projects as needed.

Over the years HEAB's agency responsibilities have not decreased but rather have increased. Staffing, however, has not increased. In fact staffing has decreased. Attachment C reflects the comparison between agency responsibilities and staffing since 1987. To compensate for the loss of staff, HEAB has reorganized and has streamlined its processes. The agency has also developed, and continues to develop, technologically. In 1998-99 the agency went paperless in terms of file maintenance and voucher request collection. This has helped tremendously in terms of time and cost savings. However, the basic duties of a clerical assistant as described above still remain. It is essential for the operation of the agency to have this position established.

Recommendation One:

Description
Strike S.39.285(3) and "or in a tribally controlled college in this state" under S.39.30(2) which references inclusion of students enrolled in tribally controlled colleges under the Wisconsin Tuition Grant (WTG) Program.

Intent
The 1997-99 Biennial Budget provided that students enrolled at least half-time in a tribally controlled college in Wisconsin be eligible to apply for and receive a WTG. The WTG was originally established as an equalization program for students attending schools whose tuition was greater than a public school's tuition. Currently, the tuition charged at both Tribal Colleges is less than the tuition charged at a public school. In 1997-98, in order for students to show eligibility for a WTG at a Tribal College; the tuition for each of the schools used in the WTG formula mandated by statute had to be artificially inflated. Inclusion of schools with tuition rates lower than public schools in the WTG Program changes the intent of the WTG Program. Separate funding should be identified to meet the need of students attending Tribal Colleges rather than include them in the WTG Program as long as the tuition rate continues to be less than the public school rate. The statutory language change recommended above should occur once a funding source is identified.

205 students from the two Wisconsin Tribal Colleges, College of the Menominee Nation and Lac Courte Oreilles Ojibwa Community College, participated in the Wisconsin Tuition Grant in 1997-98. Those students were awarded and used $158,658 in WTG funds.

Recommendation Two:

Description
Strike S.39.30(3m)(b) which references 122% as the maximum award percentage for the Wisconsin Tuition Grant.

Intent
The 122% is an obsolete maximum award percentage. The factors that affect this award percentage e.g. enrollment, expected family contributions, the number of schools a students applies to, etc., vary to a greater extent than in the past. Due to the fluctuation in these various factors, the award percentage must fluctuate. Therefore, a set award percentage is no longer applicable.

Recommendation Three:

Description
Strike S.39.435(4)(b) which references specific formula language for the Wisconsin Higher Education Grant (WHEG).

Intent
Eliminating this language would allow more flexibility in further developing formulas that would be equitable for both dependent and independent students under the WHEG Program. Currently the maximum WHEG a dependent student attending a University of Wisconsin institution can receive is $1,510. The maximum grant an independent student attending a University of Wisconsin institution can receive is $1,250. The maximum WHEG a dependent student attending a Wisconsin Technical College can receive is $1,300. The maximum grant an independent student attending a Wisconsin Technical College can receive is $1,050. Statutory language will still exist under S.39.435(4)(a) that gives definition for the awarding of grants under the WHEG Program. Also language will still exist under S.36.11(6)(c) and S.38.04(7m) whereby both the University of Wisconsin System and Wisconsin Technical College System will develop and submit to the board, for its review, formulas for the awarding of grants for the upcoming academic year.

Recommendation Four:

Description and Intent
Revise Wisconsin Statutes to reflect the recommended changes that were submitted per the 1997 Act 27, section 9156(1)(h) which identified obsolete and antiquated language. The recommendations are as follows:

Please see Board Report #99-4.

Recommendation Five:

Description
Under S.20.235(1)(d) replace "An amount of $11,330 in the 1993-94 fiscal year and $11,670 in the 1994-95 fiscal year and annually thereafter shall be disbursed under S.39.46 for each Wisconsin resident enrolled as a full-time student." with "An amount of $11,330 in the 1993-94 fiscal year, $11,670 in fiscal years 1994-95 through 1999-2000 and $11,787 in the 2000-01 fiscal year and annually thereafter shall be disbursed under S.39.46 for each Wisconsin resident enrolled as a full-time student."

Intent
This statutory change follows the Dental Education Contract funding request under the GPR Program Funding DIN 4503.

Recommendation Six:

Description
Provide statutory language that incorporates the establishment of a PR Appropriation Number for the Higher Educational Aids Board.

Intent
This statutory language addition follows the Establishment of a CA2 Position request under GPR Administrative Funding DIN 4528.