[Oasfaa] State Legislative Update

[Fair, Bryce]

Following are some of the highlights from this year's legislative session
that ended May 25.  We are just now providing the update because we were
waiting to make sure Governor Keating signed the relevant appropriations and
legislation approved during that last week of the session.

*	Funding for grant and scholarship programs increases $2.3 million!!!

	OTAG Funding Increases $1.1 million:  Funding for OTAG will increase
from $17.3 million to $18.4 million in FY2002-- the first increase in 4
years!  The additional funding will provide for nearly 1,400 more awards and
will make sure we match all available federal grant funds.

	OHLAP funding will increase $500,000, from $1.4 million to $1.9
million.  We'll actually spend about $2.8 million on OHLAP in 2001-02, using
carryover trust funds.  OHLAP enrollment continues to boom-- we'll probably
enroll 9,000 students for the 2000-01 school year before we are done
(application deadline is June 30 and we are still receiving hundreds of
applications per week).  That compares to about 3,000 enrolled during the
1999-00 school year.  We should have over 5,000 students enrolled from the
graduating class of 2003, compared to 2,350 for the class of 2002.   Watch
OHLAP grow!  Over the next four years we expect spending on OHLAP awards to
grow from $2.8 million to $4 million to $7 million to $10 million.  In just
7 years, awards through OHLAP may total $16-20 million annually.

	Academic Scholars funding will increase $400,000, from $6.7 million
to $7.1 million.  This does not fund any program expansion.  On the
contrary, we continue to run an annual funding deficit since the program
costs will be about $9.5 million in 2001-02.  Currently we are spending down
the program's trust fund to pay the deficit.  This additional funding will
get us heading back in the right direction.

	Reimbursements to public colleges for the National Guard Tuition
Waiver will increase $352,035, from $1.5 million to $1.85 million.


*	Scholarship and Grant Task Force -- SB 149 creates the Task Force on
State Scholarship and Student Aid Grant Programs to review all the financial
aid resources available to Oklahoma residents and prepare a report of
recommendations to the Legislature by December 14, 2001.  SB 149 bill text:
http://www2.lsb.state.ok.us/2001-02SB/sb149_enr.rtf


*	$2,500 State Income Tax Deduction for the Oklahoma College Savings
Plan -- HB 1896 authorizes, beginning with the 2002 tax year, a $2,500 state
income tax deduction for contributions to the Oklahoma College Savings Plan
(OCSP).  Kudos to State Treasurer Robert Butkin, who also serves as the
Chair of the OCSP's board of trustees, for leading the effort on this
legislation.  [You may also be aware that the recent federal tax cut
legislation sweetens the tax benefits even further for "Section 529" plans
like the OCSP.  In the future, distributions from the OCSP will be
completely free of federal income tax if used for "qualified higher
education expenses."  Previously, the earnings portion of any distribution
would have been treated as taxable income to the student.]
HB 1896 bill text:  http://www2.lsb.state.ok.us/2001-02HB/hb1896_enr.rtf


*	Tulsa Reconciliation Scholarship -- HB 1178 creates the Tulsa
Reconciliation and Education Scholarship Act.  This legislation came out of
the work of the Tulsa Race Riot Commission.  Beginning in 2002-03, the
program authorizes 300 scholarships.  We estimate the program could cost up
to $500,000
HB 1178 bill text:  http://www2.lsb.state.ok.us/2001-02HB/hb1178_enr.rtf


*	Tuition increase  -- As you are probably aware, the Legislature
provided a five-year authorization for the State Regents to established
tuition rates at public colleges and universities (SB 596).  Any annual
increases cannot exceed 7% for resident tuition, 9% for nonresident tuition,
10% for resident tuition at professional schools, and 15% for nonresident
professional school tuition.  The State Regents have already approved
tuition increases beginning fall 2001, which will automatically increase
OHLAP awards.  SB 596 bill text:
http://www2.lsb.state.ok.us/2001-02SB/sb596_enr.rtf



Bryce Fair
Oklahoma State Regents for Higher Education
State Capitol Complex
500 Education Building
Oklahoma City, OK  73105-4500
Phone: (405) 524-9162
Fax:  (405) 524-9230
e-mail:  bfair at osrhe.edu