Assigned to HIGHER ED & APPROP AS
PASSED BY THE SENATE
ARIZONA STATE SENATE
Forty-seventh Legislature, Second Regular Session
AMENDED
FACT SHEET FOR S.B. 1323
postsecondary education reforms
Purpose
Appropriates $15.1 million in FY 2006 – 2007 from the state General Fund to the Arizona Commission for Postsecondary Education for the Postsecondary Financial Assistance Program, a five-year University Center Pilot Program, and a five-year University Access Grant Pilot Program.
Background
Currently, there are 164 private postsecondary educational institutions licensed in the state, of which 27 are regionally accredited, 52 are nationally accredited and 85 are non-accredited non-degree granting schools. Private colleges and universities educate approximately 200,000 students in the state. The State Board for Private Postsecondary Education performs regulatory and compliance reviews, takes disciplinary action, and investigates complaints and violations.
The state does not provide any enrollment or capital funding for private postsecondary institutions with the exception of the Private Postsecondary Education Student Financial Assistance Program (PFAP). PFAP provides tuition vouchers, up to $1,500 annually, to qualified community college graduates who enter private postsecondary educational institutions within Arizona. If students do not graduate within three years of the initial receipt of the award, the student must return the full amount of the award. Since 1996, 1,147 students have been awarded PFAP grants.
Northern Arizona University (NAU) manages the Arizona Universities Network (AZUN) on behalf of the Arizona Board of Regents (ABOR) as a gateway for any student admitted to one of the three public universities to access online distance learning for undergraduate, graduate and non-degree programs available from all three institutions.
Currently, there are two programs using the “university center” model operating in the state: NAU-Yuma and Signal Peak at Central Arizona College. The university center model brings together at a common site a range of upper division program offerings from public and private universities and community colleges.
There is a total fiscal impact to the state General Fund of $15.1 million for the five appropriations made in the bill.
Provisions
University Centers
1. Directs the Arizona Commission for Postsecondary Education (ACPE) to develop, implement, and administer a five-year University Center Pilot program to include one university center in a county with less than 800,000 persons and another in county with a population of greater than 800,000 persons.
2. Directs ACPE to select university center sites from proposals submitted by a community college or district, a public or private university, or any combination thereof. Details the proposal requirements. Specifies that degree programs offered must be in addition to degrees offered by Northern Arizona University.
3. Requires priority to university center proposals that utilize existing infrastructure.
Postsecondary Financial Assistance Program
4. Expands the distribution of financial assistance monies from the PFAP program to include students who attend private colleges, public colleges or universities, who have at least an associates degree or who have obtained at least sixty credit hours of transferable lower division coursework from a community college in the state.
University Access Grants
5. Directs the ACPE to develop, implement, and administer a five-year University Access Grant Pilot Program to provide grants up to $2,500 to full time students and $1,250 to part-time students to pay all or a portion of tuition, books, fees and lease of computer equipment or internet access toward upper division courses at a public or private postsecondary institution for twelve consecutive semesters.
6. Details program eligibility requirements for students:
a. Attainment of a associate degree through a community college or has obtained at least sixty credit hours of transferable lower division coursework. Students who already possess a baccalaureate or professional degree are not eligible.
b. Registration for enrollment in a baccalaureate program in an accredited public or private postsecondary institution that awards four-year degrees.
c. Inability to participate because the student resides more than ten miles from the nearest public postsecondary institution that offers baccalaureate degrees or due to work, family, or personal obligations that prevent students from participating in existing programs.
d. Demonstration of financial need.
e. Residency in this state.
7. Requires ACPE to consider other potential sources of financial aid for each applicant to ensure that grants are awarded to students who demonstrate the greatest financial need.
8. Directs the ACPE to give priority to grant applicants who are pursuing a degree in employment areas that are underserved in the applicant’s community.
9. Establishes the University Access Grant Fund, consisting of legislative appropriations for awards to eligible students selected to participate in the University Access Grant Pilot Program for payment of tuition at eligible colleges or universities. This fund is exempt from lapsing of appropriations.
10. Requires the ACPE to develop a program evaluation procedure in order to determine the effectiveness of the University Access Grant Pilot Program.
11. Specifies that a student who fails to receive a baccalaureate degree within a four-year period shall reimburse the University Access Grant Fund for all monies received.
Appropriations
12. Appropriates $8 million to the ACPE for the PFAP, of which at least $5 million must be awarded to students in public universities and at least $3 million must be used for students who attend private postsecondary institutions. Ten percent of the monies appropriated, or $800,000, may be used by ACPE for administrative costs. This appropriation is exempt from lapsing of appropriations.
13. Appropriates $2 million to the ACPE for the University Access Grant Program Fund. Ten percent of the monies appropriated, or $200,000, may be used by ACPE for administrative costs. This appropriation is exempt from lapsing of appropriations.
14. Appropriates $5 million to the ACPE to implement and maintain the University Centers Pilot Program. Ten percent of the monies appropriated, or $500,000, may be used by ACPE for administrative costs. The appropriations is exempt from lapsing of appropriations.
15. Appropriates $50,000 to the ACPE to develop the dual enrollment and joint admission models. ACPE may use these monies to contract with a third party to develop the models. Ten percent of the monies appropriated, or $5,000, may be used by ACPE for administrative costs. This appropriation is exempt from lapsing of appropriations.
16. Appropriates $50,000 to the ACPE to develop and distribute the Arizona College and Career Guide. Ten percent of the monies appropriated, or $5,000, may be used by ACPE for administrative costs. This appropriations is exempt from lapsing of appropriations.
Miscellaneous
17. Includes the ACPE and private postsecondary education institutions in the state as part of the statewide articulation and transfer system.
18. Assigns to ACPE, in consultation with private and postsecondary educational institutions, the development of a dual enrollment model and joint admissions model to be used by all postsecondary education institutions to improve transfer and graduation rates.
19. Makes technical and conforming changes.
20. Terminates the University Access Grant Pilot Program on July 1, 2011.
Amendments Adopted by Committee of the Whole
1. Eliminates public and private postsecondary institutions’ participation in the ABOR distance learning network.
2. Adds new eligibility requirements for PFAP.
3. Expands information provided in the college and career guide.
4. Clarifies the type of programs that can be offered at university centers.
Senate Action
HED 2/1/06 DP 6-0-1
APPROP 2/21/06 DP 9-1-1
3rd Read 3/14/06 27-2-0
Prepared by Senate Research
March 15, 2006
DN/ac