Bill Summary – FastDemocracy

State of Alaska
                                                             Fiscal Note
                                                                                                Bill Version:                    CSSSHB 48(EDC)
 2022 Legislative Session
                                                                                                Fiscal Note Number:              4
                                                                                                (H) Publish Date:                3/18/2022
 Identifier:        HB048SS-EED-APS-3-7-22                                        Department:       Department of Education and Early Development
 Title:             AK PERFORMANCE SCHOLARSHIP;                                   Appropriation: Student Financial Aid Programs
                    ELIGIBILITY                                                   Allocation:       Alaska Performance Scholarship Awards
 Sponsor:           STORY                                                         OMB Component Number:              2990
 Requester: House Education
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                                  (Thousands of Dollars)
                                                 Included in
                                    FY2023       Governor's
                                Appropriation      FY2023                                              Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2023        FY 2023       FY 2024                        FY 2025           FY 2026            FY 2027        FY 2028
 Personal Services
 Travel
 Services
 Commodities
 Capital Outlay
 Grants & Benefits                     3,480.9       11,750.0      15,230.9                       15,230.9          15,230.9          15,230.9        15,230.9
 Miscellaneous
 Total Operating                       3,480.9       11,750.0      15,230.9                       15,230.9          15,230.9          15,230.9        15,230.9
 Fund Source (Operating Only)
 1004 Gen Fund (UGF)                          3,480.9        11,750.0           15,230.9          15,230.9          15,230.9          15,230.9        15,230.9
 Total                                        3,480.9        11,750.0           15,230.9          15,230.9          15,230.9          15,230.9        15,230.9
 Positions
 Full-time
 Part-time
 Temporary
 Change in Revenues
 None
 Total                                             0.0             0.0                 0.0              0.0                0.0              0.0             0.0
 Estimated SUPPLEMENTAL (FY2022) cost:                                    0.0                (separate supplemental appropriation required)
 Estimated CAPITAL (FY2023) cost:                                         0.0                (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                   Yes
 If yes, by what date are the regulations to be adopted, amended or repealed?                                   03/15/23
 Why this fiscal note differs from previous version/comments:
 The original version of HB 48 did not change the funding amounts for the Alaska Performance Scholarship awards.
 Prepared By:               Sana Efird, Executive Director                                                            Phone:         (907)465-6740
 Division:                  Alaska Commission on Postsecondary Education                                              Date:          03/07/2022
 Approved By:               Lacey Sanders, Administrative Services Director                                           Date:          03/08/22
 Agency:                    Department of Education & Early Development
Printed 3/17/2022                                                        Page 1 of 2                                                          Control Code: qNEzN
                                                                                                      CSSSHB 48(EDC) - Fiscal Note 4
                                                 FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                  BILL NO. SSHB 48
2022 LEGISLATIVE SESSION
Analysis
   The bill amends the qualification criteria of an Alaska Performance Scholarship (APS) applicant by adding an option for
   career and technical education (CTE) to the academic curriculum, inserts a definition for career cluster, removes the
   minimum score on college entrance or standardized examination requirement, adds a requirement for school districts to
   notify students in their junior year of their progress towards earning APS eligibility, increases the annual award amounts,
   and provides an additional two years for students to use the scholarship after high school graduation.
   The estimated increase for APS  $3,480,981.
   The estimate for increase in APS awards is calculated to include the increase in award amounts and a small conservative
   increase in the number of recipients in 2020 and 2021. These two years saw increases in eligibility because the
   standardized testing requirements were waived due to COVID19.
   For FY2023, the APS and the Alaska Education Grants (AEG) are funded with UGF.
   AS 37.14.750 established the Higher Education Investment Fund (HEIF) to fund these programs. However, the HEIF does
   not currently have a balance due to the constitutional budget reserve sweep. Therefore, the funding source noted is UGF.
   If the HEIF is reinstated, the funding source would revert to HEIF.
   Under AS 37.14.750(c), as soon as practicable after July 1 of each year, the commissioner of revenue shall determine the
   market value of the fund established in this section on June 30 for the immediately preceding fiscal year. The
   commissioner shall identify seven percent of that amount as available for appropriation as follows:
     (1) onethird for the grant account established under AS 14.43.915(a), from which the Alaska Commission on
   Postsecondary Education may award grants; and
     (2) twothirds for the scholarship account established under AS 14.43.915(b), from which the Alaska Commission on
   Postsecondary Education may award scholarships.
   The increased estimates for the APS and AEG still fit within the HEIF's seven percent calculation available for appropriation
   based on the market value of the fund at the end of 2021. This could change with market fluctuations and/or tapping the
   HEIF for other purposes.
(Revised 11/23/2021 OMB/LFD)                                                                                       Page 2 of 2
HB048SS-EED-APS-3-7-22                                         Page 2 of 2                                              Control Code: qNEzN
Statutes affected: 
HB0048A, AM HB 48, introduced 02/18/2021: 14.43.820, 01.10.055
HB0048B, AM SSHB 48, introduced 02/22/2022: 14.43.820, 01.10.055, 14.17.990, 14.43.825
HB0048C, AM CSSSHB 48(EDC), introduced 03/18/2022: 14.43.820, 01.10.055, 14.17.990, 14.43.825
HB0048A, AM HB 48, introduced 01/08/2021: 14.43.820, 01.10.055