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<p class="MsoNormal"><span style="font-size:14.0pt">Yesterday, the House Appropriations and Budget Committee passed two bills related to the Oklahoma’s Promise program HB 3591 (20 yes, 6 no) and HB 3592 (18 yes, 7 no). These two bills have the potential to
make significant changes to the program. The current language in the bills does not fully reflect the discussion of the intent of the bills. Below is a little more information on each bill based on our discussions with the staff of the House Speaker.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:.5in"><b><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">House Bill 3591 (Speaker Charles McCall)
</span></b><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Requires all other grants and scholarships be exhausted prior to the Oklahoma’s Promise award being administered.
<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:.5in;text-indent:.5in"><b><u><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">UPDATE:
</span></u></b><u><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Passed the House Appropriations and Budget Committee; 2/26/18.<o:p></o:p></span></u></p>
<p class="MsoNoSpacing" style="margin-left:.5in;text-indent:.5in"><b><u><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p><span style="text-decoration:none"> </span></o:p></span></u></b></p>
<p class="MsoNoSpacing" style="margin-left:1.0in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">HB 3591 would change the Oklahoma’s Promise award to a “last dollar” scholarship that could be used only toward the cost of tuition and fees
(and possibly books) <b><u>after</u></b> applying all the other grant/scholarship aid the student receives toward these costs. Currently, the Oklahoma’s Promise award is subject to the overall limit of the student’s Cost of Attendance as defined by federal
law/policy (tuition, fees, books, room & board, transportation) and the OKPromise award must be reduced or eliminated if the student’s total aid exceeds their Cost of Attendance. Following is an example of how the OKPromise award could be effected by HB 3591.<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.5in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.5in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">2017-18 estimated average cost of tuition, fees & books for a public regional university $8,500<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.5in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.5in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Estimated average Pell Grant (about 70% of OKPromise students receive Pell) $4,400<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.5in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Other institutional/private scholarships/grants/tuition waiver $1,500<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.5in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Estimated Oklahoma’s Promise Award
<u>$4,500</u><o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.5in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Total Aid to be counted toward tuition, fee & book costs $10,400<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.5in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.5in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Amount that the total grant/scholarship aid exceeds tuition, fee & book costs $1,900<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.5in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Amount OKPromise Award would be reduced to fit tuition, fee & book costs -$1,900 or about -42%<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.5in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.0in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">We did an analysis of 2015-16 OKPromise students attending state system colleges and universities and found that overall, if this requirement
had been in place in 2015-16, the average OKPromise award would have been reduced by about 30% (some students would lose all of their OKPromise award). The average impact was greater at the regional universities (-33%) and the research universities (-44%).
<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.0in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.0in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">The bill could also complicate institutional “last dollar” scholarship programs that apply toward tuition or tuition/fees (Tulsa Community
College – Tulsa Achieves; Oklahoma City Community College – OKCGo; Rose State College – Ticket to Rose) by requiring that the institution apply it’s scholarship before the OKPromise scholarship is applied.<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.0in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.0in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">We recommend that you try to examine how this type of awarding requirement would impact OKPromise students on your campus.<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.0in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:.5in"><b><u><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p><span style="text-decoration:none"> </span></o:p></span></u></b></p>
<p class="MsoNoSpacing" style="margin-left:.5in"><b><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">House Bill 3592 (Speaker Charles McCall)</span></b><span style="font-size:12.0pt;font-family:"Times New Roman","serif""> If a student withdraws
from a class in which he or she has received an award from the Oklahoma Higher Learning Access Program, the awarded funds shall remain available for the student to use to enroll in classes for a five-year period.
<b> <o:p></o:p></b></span></p>
<p class="MsoNoSpacing" style="margin-left:.5in;text-indent:.5in"><b><u><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">UPDATE:
</span></u></b><u><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Passed the House Appropriations and Budget Committee.<o:p></o:p></span></u></p>
<p class="MsoNoSpacing" style="margin-left:.5in;text-indent:.5in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNoSpacing" style="margin-left:1.0in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">In discussions with the Speaker’s staff, the primary concern for this bill was related to refund policies for OKPromise awards when the student
withdraws from a course(s). The staff expressed potential interest in applying a policy to OKPromise awards that is similar to the federal policy for the Return of Title IV Funds. We recommend that you consider how such a policy would impact your OKPromise
students.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Let me know if you have any questions.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Bryce<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal">Bryce Fair<o:p></o:p></p>
<p class="MsoNormal">Associate Vice Chancellor for Scholarships & Grants<o:p></o:p></p>
<p class="MsoNormal">Oklahoma State Regents for Higher Education<o:p></o:p></p>
<p class="MsoNormal">P.O. Box 108850<o:p></o:p></p>
<p class="MsoNormal">Oklahoma City, OK 73101-8850<o:p></o:p></p>
<p class="MsoNormal">Phone: 405-225-9162<o:p></o:p></p>
<p class="MsoNormal">Email: <a href="mailto:bfair@osrhe.edu">bfair@osrhe.edu</a><o:p></o:p></p>
<p class="MsoNormal">Fax: 405-225-9230<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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