Essentially, before a case can be brought forward to request substantial funding, an analysis is needed to determine whether or not post-secondary education in Wisconsin is financially accessible to the extent that it should be.

Continuing Appropriation for the Wisconsin Higher Education Grant (WHEG), the Wisconsin Tuition Grant (WTG), and the Talent Incentive Program Grant (TIP)
Should a continuing type appropriation be sought for the WHEG, WTG, and TIP Grant Programs?

There are four types of appropriations. Following are the definitions of each type per s.20.001(3):

Annual - An authorization which is expendable only up to the amount appropriated by the Legislature and only for the fiscal year for which it was appropriated. Amounts appropriated but unexpended or unencumbered generally lapse to the fund from which they are appropriated at the end of each fiscal year.

Biennial - An authorization which is expendable only during the two fiscal years of a biennium for which appropriated by the legislature. The amounts appropriated for each fiscal year represent the most reliable estimates of the amounts which will be expended in each fiscal year. For accounting purposes, the appropriation for the first year of a biennium is the sum of the expenditures for the fiscal year plus the encumbrances at the close of that year. The appropriation for the second year is the unexpended and unencumbered balance of the appropriation at the end of the first fiscal year. Amounts appropriated but unexpended or unencumbered at the end of a biennium lapse to the fund from which they are appropriated.

Continuing - An authorization which is expendable until fully depleted or repealed by subsequent action of the legislature. The appropriation for any fiscal year consists of the ending balance from the previous fiscal year plus the revenues received or new appropriation authority granted in the current fiscal year. Specific dollar amounts appearing in any type of an appropriation listing or schedule only represent the most reliable estimates of the amounts to be expended or encumbered during any given fiscal year and are not considered as limiting.

Sum Sufficient - An authorization which is expendable from the indicated source of funds in the amounts necessary or sufficient to accomplish the purposes for which provided. The amounts appropriated represent the most reliable estimate of the amounts which will be needed for the purposes.

Currently WHEG, WTG, and TIP Grant Programs are under the biennial appropriation type. This allows funds to be carried forward and back between the two biennial years only. In 1997-98 funds were carried back from 1998-99 for one of the programs to fund awards made in 1997-98. Also, funds will be carried forward from 1997-98 to 1998-99 for several of the programs. Funds cannot be carried forward from 1998-99 to 1999-2000 or carried back from 1999-2000 to 1998-99 since this would require carrying funds between biennial periods.

A continuing appropriation would allow funds to be carried forward each year (even outside a biennial period). However, funds could never be carried back. So, for example, what occurred in 1997-98 where funds were carried back from 1998-99 could not have occurred under a continuing appropriation. A continuing appropriation could provide more consistency from year to year and reduce the probability of adjusting formulas or reducing awards mid year if the formulas are set very conservatively always allowing funds to be carried forward. However, funds always being carried forward may appear to some that the programs are overfunded.

A sum sufficient appropriation type is the most attractive since this would provide funds necessary to accomplish the purpose of the programs. However, this issue relates directly to the Funding Requests for All Programs issue.

The Future of State Student Incentive Grant (SSIG) Funding
Are there steps that can be taken now to prepare for the possible future? Should steps be taken?

A 1998-99 SSIG allocation statement was received in the amount of $532,654. This is just more than half of the 1997-98 allocation. The SSIG Program appears to be gaining momentum under the Leveraging Educational Assistance Partnership (LEAP) initiative. There is a distinct possibility that SSIG will once again survive. Given the many unknowns, there is not much that can be done in regards to this issue except to continue to support the continuing existence of the federally funded SSIG and be mindful of the fact that the funds may cease to exist at some point in time.

Wisconsin Higher Education Grant (WHEG) and Wisconsin Tuition Grant (WTG) Formulas
Should the WHEG formulas be collapsed into one formula?

Appendices D and E reflect the simulation data that was prepared for the UW and WTC Systems. Simulation one indicated in both D and E is the baseline simulation. The baseline is the best estimate of what 1998-99 awards will look like.

The closest overaward percentage to the baseline's percentage for the UW WHEG is simulation six with 146.58%. If you compare the number of awards and the average award in simulation one to six, you will see an increase in the number of awards but a decrease in the average award for dependent students. Independent students would see fewer awards, but larger average awards.

The closest overaward percentage to the baseline's percentage for the WTC WHEG is simulation two with 178.59%. If you compare the number of awards and the average award in simulation one to two, you will see a substantial increase in awards but a decrease in the average award for dependent students. Independent students would see more awards and smaller average awards too.

UW System Administration does not have a recommendation to date as to whether or not the formulas should be collapsed. Their WHEG Advisory Council is currently examining the different possibilities. The United Council of University of Wisconsin Students believes that the two formulas should stay intact. However, The United Council believes that both independent and dependent students should have the same opportunity to be eligible for the same maximum award.

The WTC System Administration recommends that the current dependent student formula be eliminated. Keep in mind that the great majority of the students projected to be eligible for a WTC WHEG in 1998-99 are independent. It is projected that 3,176 dependent students will be eligible under the current formula compared to 19,063 independent students. This is very different than the breakdown between dependent and independent awards for the UW WHEG.

Collapsing the WHEG formula would require a statutory change. Collapsing the formula for one system and not the other would require distinguishing the UW WHEG from the WTC WHEG statutorily.

It has been recommended by Legislators and by Administration that changes should not be made that would severely impact current recipients' eligibility if at all possible. This has also been HEAB's past practice.

Should and can the WTG formula be simplified?

Even though the current formula is complicated and cumbersome, it does include all the factors that the WTG was built on. There currently are no alternatives available that would include all of the necessary components yet simplify the formula.

Inclusion of Tribal Colleges in the Wisconsin Tuition Grant Formula
Does the inclusion of schools with tuition rates lower than public schools in the WTG Program change the intent of the WTG Program? Should separate funding be sought 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 inclusion of schools with tuition rates lower than public schools in the WTG Program does change the intent of the program. It is for that reason other funding should be sought to meet the need of students attending Tribal Colleges. The key will be to locate sufficient funding. I have asked both Tribal Schools to respond to this issue. To date, I have not received a response. I will continue to seek their input.

Minimum Talent Incentive Program Grant Amount
Should an increase in the minimum TIP Grant be pursued?

By increasing the minimum more funds would be targeted to the neediest students. However, by increasing the minimum fewer students would receive the award and program flexibility would be lost. Recommendations on this issue have been split. HEAB's past practice has been for the most part to provide more awards that are smaller rather than fewer large awards.

Modifications in Statutory Language
What are all of the necessary changes? - Please see Board Report #99-4.