Re:

["Archie" <archie@moscow.com>]

Tom;
Thanks for the update on the Idaho Promise Scholarship.  I was reading an
interesting article in the Chronicle of Higher Education today about the
experiences other states have had with these merit-based scholarships.  They
are very popular with large segments of the public, and with some higher
education officials.   They do seem to keep students in-state and encourage
students to attend who might not otherwise.

However, there are some serious problems developing in states that have had
these for a while.  Some of the down-sides are:

(1) the funding requirements increase much more quickly than anticipated,
far beyond initial projections.  Already, the proposed plan in Idaho seems
to require 3 million the first year, 6 million the next year, and perhaps 9
million the next year.  Where will these future dollars come from?

(2) This pressure on state dollars decreases meager need-based aid student
aid dramatically.  This results in a shift in aid from the lower income
folks who have a hard time paying for college to more affluent families, who
would be attending anyway.

(3) Because these programs are so specific in their prescriptions, they
quickly turn into entitlements, with parents and prospective students
becoming very alarmed whenever discussions arise about even modest changes
to control costs or shift the benefits to a more need-based group.

(4) When state scholarships are put into the mix, students are frequently
ineligible for federal aid, and parents are not in a position to take
advantage of federal (and corresponding state) income tax deductions and
credits.  The net income to the state through these external sources is thus
somewhat diminished.

(5) Because the amount of the aid is often indexed to tuition and fees, the
costs of the program goes up when institutions raise tuition and fees.  This
results in legislators limiting fee increases, since they will have to fund
them partly with state tax revenue, putting the state institutions at
further disadvantage compared with other states and private institutions.

I could perhaps find a summary of the article and forward it to you, as I
don't think I am recalling all of the issues of the top of my head tonight.

It seems to me that the combination of the state surplus this year, the
clamor for more aid to education in general and higher education in
particular, and an aversion to actually funding our institutions directly
make it very likely that this "Promise Scholarship" is essentially a done
deal.  In the long run, however, it may turn out that Idaho is, again, just
a few years behind and we're jumping on a bandwagon just as the concept is
running onto rough ground in other states.

So, while it may be too late to re-examine the concept in it's entirety, it
might be a good idea to build in a periodic review process so that problems
will be recognized and addressed on a set schedule, say every three years.
This would make it possible for legislators to fine tune the system without
having to overcome political obstacles even raising an issue.

Archie George
1891 Conestoga
Moscow Idaho 83843
----- Original Message -----
From: "RepTrail" <RepTrail@infotrail.com>
To: <ttrail@house.state.id.us>
Sent: Sunday, January 14, 2001 8:38 PM


>
> IDAHO'S PROMISE SCHOLARSHIP PROGRAM
>
>       The Idaho Promise Scholarship Program is almost a reality. The
> program received the Governor's endorsement in his State of the State
> speech plus $6,000,000 for funding.  The legislation was introduced last
> February in the Legislature by Sen. Bob Lee and myself, and it was passed
> and signed by the Governor.  I attended JFAC's hearing on the Program just
> after the Governor's speech.  We are asking for an initial $3,000,000
> supplemental appropriation so that the program can get on line almost
> immediately.
>
>       I believe this Program is potentially one of the best policy
> decisions made by the Governor and the Legislature in the last 10 years as
> an investment in helping make post-secondary education more affordable to
> Idaho families.  Only 49% of Idaho high school graduates move on to higher
> education.  Nationally, 65% of high school graduates participate in some
> form of higher education opportunity.  Eighty percent of Iowa students go
> on to higher education.
>
>       One of the objectives of the legislation is to provide some
> additional support for Idaho families to help pull together the financial
> package to send their children on to college.  The Legislature also wants
> to encourage a higher percentage of Idaho high school graduates to attend
> university, vo-tech, and community college programs.  Thirteen percent of
> Idaho students go to school outside of state.  Another objective of the
> legislation to try and keep some of the "best of the rest" at Idaho
> institutions.
>
>       Listed below are some of the characteristics of the program:
>
> 1. The State of Idaho will provide a $500 scholarship per semester to any
> high school graduate who attains a 3.0 GPA (overall GPA).  The scholarship
> will be available for a total of 4 semesters or a total of $2,000.
>
> 2. Students must attend an accredited Idaho institution of higher
> education.  Any curriculum can be followed.  The only exception is that
the
> scholarship cannot be used to study for the clergy.
>
> 3. Some universities will match the scholarship.  Dr. Hoover, President of
> the University of Idaho, told me that if the program were funded, the
> University of Idaho would match the State contribution. The combined total
> of the State scholarship with the University match would be $4,000!
>
> 4. High school graduates from private schools are eligible.  Home
schoolers
> who achieve a 20 on the ACT qualify.  GED graduates can also take the ACT
> to qualify for the award.
>
> 5. A student must maintain a 2.5 GPA at the post-secondary level to keep
> the scholarship.
>
> 6. Students can take a break in their university program and then come
back
> and re-qualify for the scholarship.
>
> 7. The scholarship program will be administered through the State Board of
> Education.
>
>       We estimate that about 6,000 Idaho high school graduates will be
> eligible for the program.  We anticipate that when the supplemental
> appropriations are approved in late January, the program will be ready to
> roll. It is anticipated that high school graduates who graduate in late
May
> and early June will be eligible to apply for the program and to utilize
the
> first scholarship this coming Fall.  Once the final Legislative approval
is
> given, I anticipate that the State Board of Education will be
communicating
> with the Department and Education and that specific instructions will go
> out to school districts.
>
>       Other states have had great success with similar programs.  The
> program is not an entitlement, and funds will be appropriate on a year to
> year basis.  It will be interesting to track and evaluate the results of
> the Idaho Promise Scholarship Program
> .
> Rep. Tom Trail/Dist. 6 ttrail@house.state.id.us
>
>
>
>
>
>
> Rep. Tom Trail, district 5
>
>   I would like constituents to contact me by e-mail me with their ideas,
> comments and recommendations.
>
> ttrail@moscow.com
>
> Legislative newsletters and additional materials and information can be
> located on my web
> and home page http://www.infotrail.com/idaho
>