HLS 15RS-3814 ORIGINAL 2015 Regular Session HOUSE RESOLUTION NO. 178 BY REPRESENTATIVE JEFFERSON STUDENT/LOANS-SCHOLARSHP: Requests that the Board of Regents, in collaboration with the Louisiana Student Financial Assistance Commission, study and make recommendations relative to student financial aid 1 A RESOLUTION 2To urge and request the Board of Regents, in collaboration with the Louisiana Student 3 Financial Assistance Commission, study the state's merit-based and need-based 4 student financial assistance programs and to submit a written report of findings, 5 conclusions, and recommendations to the House Committee on Education not later 6 than sixty days prior to the beginning of the 2016 Regular Session of the Legislature 7 of Louisiana. 8 WHEREAS, R.S. 17:3129.7 requires the Board of Regents to develop and maintain 9a comprehensive state student financial aid plan that supports the Master Plan for Public 10Postsecondary Education and to consider all sources of financial aid available to students 11attending or seeking to attend postsecondary education institutions in Louisiana and the 12financial needs of such students; and 13 WHEREAS, two major components of student financial aid in Louisiana are the 14merit-based Taylor Opportunity Program for Students (TOPS) and the need-based Louisiana 15GO Grant program; and 16 WHEREAS, the purpose of TOPS, according to the Louisiana Administrative Code, 17Chapter 7, Section 701, is to provide an incentive for Louisiana residents to academically 18prepare for and pursue postsecondary education in this state, resulting in an educated work 19force enabling Louisiana to prosper in the global market of the future; and Page 1 of 4 HLS 15RS-3814 ORIGINAL HR NO. 178 1 WHEREAS, relative to the purpose of the Louisiana GO Grant program, the 2legislature finds in R.S. 17:3046 that leveraging access to postsecondary education for 3students with demonstrated financial need ensures that all qualified students are afforded an 4opportunity to achieve their full educational potential, increase their overall quality of life, 5and maximize their contribution to the state's economic development; and 6 WHEREAS, though TOPS and the GO Grant program are excellent programs that 7have helped thousands of Louisiana students in their pursuit of postsecondary education, 8there are some aspects of the overall financial aid landscape in Louisiana that merit further 9analysis and consideration; and 10 WHEREAS, one issue that many find concerning about TOPS is that TOPS awards 11are disproportionately awarded to white, relatively wealthy students, as noted in the TOPS 12Report: Analysis of the TOPS Program from 2003-2014, published by the Board of Regents, 13which states that during this time span, approximately seventy-nine percent of TOPS 14recipients were white, and the mean and median household income of TOPS recipients 15ranged from $70,000 to $99,000, much higher than Louisiana's median household income 16of approximately $44,000; and 17 WHEREAS, another concern that some have raised about TOPS is the award 18retention rate of its recipients; this same Board of Regents report states that approximately 19one-third of TOPS recipients between 2003 and 2014 had their award cancelled during some 20point in their postsecondary academic career; and 21 WHEREAS, one of the most widely discussed matters related to TOPS is its cost; 22according to the report, the state spent approximately $1.9 billion funding the TOPS program 23from 1999 through 2014, and during that time period, total expenditures on the program 24increased 296%; and 25 WHEREAS, in terms of elements of the Go Grant program that call for continued 26study, its underfunding ranks above all; in 2011, the Louisiana Budget Project (LBP) 27published a report stating that in Louisiana, "spending on need-based aid is consistently out 28of line with that of other states" and that the GO Grant Program "has been chronically 29underfunded"; and Page 2 of 4 HLS 15RS-3814 ORIGINAL HR NO. 178 1 WHEREAS, this LBP report also points out that "even with a maximum allowable 2GO Grant, students can have large, unmet financial needs" and that "compared to other 3Southern states and to states nationally, Louisiana spends a disproportionately large share 4of its financial aid resources on those who can readily afford college while providing too 5little to those who need financial help in order to have a chance at a college education"; and 6 WHEREAS, calling for more need-based aid, the LBP report states that "students 7from low-income and minority backgrounds – those who have been traditionally 8underrepresented in Louisiana's colleges and universities – are less likely to benefit from 9TOPS" and "to ensure that higher education remains accessible to all Louisianans, Louisiana 10needs to redirect its financial aid resources and to increase funding to its need-based 11financial aid program"; and 12 WHEREAS, this report's ultimate recommendation is that "legislators should strike 13a balance between funding TOPS and Go Grants so that taxpayer dollars maximize 14attendance across all income levels"; and 15 WHEREAS, in light of the state's precarious budget situation and the fundamental 16importance of postsecondary education, it is imperative that the positive and negative aspects 17of the state's merit-based and need-based student financial aid programs receive a thorough 18study. 19 THEREFORE, BE IT RESOLVED that the House of Representatives of the 20Legislature of Louisiana does hereby urge and request the Board of Regents, in collaboration 21with the Louisiana Student Financial Assistance Commission, to study the state's merit- 22based and need-based student financial assistance programs and to submit a written report 23of findings, conclusions, and recommendations to the House Committee on Education not 24later than sixty days prior to the beginning of the 2016 Regular Session of the Legislature 25of Louisiana. 26 BE IT FURTHER RESOLVED that such report shall analyze the strengths and 27weaknesses of both merit-based and need-based programs in the state and provide 28recommendations for how such programs might be revised in terms of helping more 29Louisiana students maximize their postsecondary education opportunities and success. Page 3 of 4 HLS 15RS-3814 ORIGINAL HR NO. 178 1 BE IT FURTHER RESOLVED that a suitable copy of this Resolution be transmitted 2to the chairman of the Board of Regents, the commissioner of higher education, and the 3chairman of the Louisiana Student Financial Assistance Commission. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HR 178 Original 2015 Regular Session Jefferson Requests that the Bd. of Regents, in collaboration with the La. Student Financial Assistance Commission, study the state's merit-based and need-based student financial assistance programs and submit a written report of findings, conclusions, and recommendations to the House Committee on Education not later than 60 days prior to the beginning of the 2016 R.S. Provides that such report analyze the strengths and weaknesses of both merit-based and need-based programs and provide recommendations for how such programs might be revised in terms of helping more La. students maximize their postsecondary education opportunities and success. Page 4 of 4