HB 1865 -- HIGHER EDUCATION (Bearden)

COMMITTEE OF ORIGIN:  Special Committee on Student Achievement
and Finance

This bill revises the laws regarding several student assistance
programs and makes changes to appropriations and oversight for
public higher education based on student assistance and
institutional performance.

The Access Missouri Scholarship Program is established to provide
assistance to college freshmen who are not eligible for the A+
Program or have chosen institutions not covered by the A+
Program.  The maximum award will be $1,000.  The new program, as
well as the Gallagher, Guarantee, and Bright Flight programs, has
a 2.5 grade point average requirement for renewal.  The 2.5
initial qualifying grade point average and extracurricular
activity for the Guarantee Program are eliminated.  Obsolete
language is deleted, and the Gallagher Program's criminal
background disqualifications are changed to be the same as those
in the Guarantee Program.

The bill sets the 2002 fiscal year's operating appropriation as a
starting point for a change in the way appropriations are made.
Once the 2002 level is achieved, appropriations will be directed
toward student assistance programs rather than institutional aid,
until the main assistance programs are fully funded.  At 75% and
100% of full assistance funding, the General Assembly may
consider resetting appropriations levels.  Institutions may
receive increases of up to 2.5% of their previous year's
appropriation during the phase-in of full assistance funding, and
once 100% funding is achieved, the cap will be lifted.  Any
effort through appropriations to consolidate specified student
assistance programs will require a companion bill to make the
appropriate changes in law, rather than zeroing-out an
appropriation to eliminate a program.  Five major performance
measures will be developed by the Department of Higher Education
in conjunction with higher education institutions.  Institutions
will enter into performance contracts for up to five years.  A
tuition and student fee increase limitation based on the federal
Consumer Price Index for state four-year institutions is imposed.
Beginning July 1, 2007, the Coordinating Board for Higher
Education will be responsible for several aspects of education
delivery, including areas where the cost of services may not be
met by tuition, through annual fee-for-services contracts with
public and private institutions.

A 14-member Joint Committee on Higher Education is established to
disseminate the data from the contracts and changes in the
assistance programs.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$10,134,069 to Unknown in FY 2007, $10,650,273 to Unknown in
FY 2008, and $11,175,288 to Unknown in FY 2009.  Subject to
appropriation.  No impact on Other State Funds in FY 2007,
FY 2008, and FY 2009.

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:44 am