Increases the amount of general fund appropriations previously appropriated for the B Plus scholarship program. Deposits the appropriations into the student scholarship and assistance special fund. Changes the income guidelines. (SD1)

A BILL FOR AN ACT

SECTION 1. The legislature recognizes that, according to the national center for public policy and higher education, net college costs for low- and middle-income students to attend Hawaii's public four-year colleges and universities represent a third of their families' annual income. In 2004, the national non-profit independent organization gave Hawaii a "D" for affordability. The organization also noted that "over the past few years, Hawaii has had among the steepest declines in the nation in the percentage of first-time, full-time college students earning their bachelor's degree within six years of enrolling in college."

During the 2005 legislative session, recognizing the need to provide financial support to Hawaii's residents in attaining a post secondary degree, the legislature appropriated $1,500,000 in general funds for the fiscal biennium 2005-2007 to provide merit-based scholarships for Hawaii's low-income public school graduates wishing to attend the university. Despite this appropriation, the legislature finds that the increases in the tuition and fee schedule, which takes effect in the fall of 2006, will continue to make it difficult for Hawaii's residents to attend the university. The legislature also finds that the initial appropriation of $1,500,000 is not sufficient to enroll a significant proportion of the estimated number of eligible applicants.

SECTION 2. Act 178, Session Laws of Hawaii 2005, is amended by amending section 57 to read as follows:

"SECTION 57. Provided that of the general fund appropriation for the university of Hawaii systemwide (UOH 900), the sum of $500,000 or so much thereof as may be necessary for fiscal year 2005-2006, and the sum of [$1,000,000] $3,000,000 or so much thereof as may be necessary for fiscal year 2006-2007, shall be deposited into the student scholarship and assistance special fund; provided further that the amounts shall be used to fund the [B-Plus] B Plus Scholarship program; provided further that the university shall offer [full] scholarships to any Hawaii resident [applying to] enrolling in any campus within the university system provided that the individual has graduated from a Hawaii public high school with a cumulative grade point average of 3.0 or better and is [considered low income according to the state of Hawaii department of education's guidelines for students qualifying for the free and reduced lunch program.] eligible for need-based financial aid based on federal financial aid guidelines; and provided further that the scholarship may be renewed annually if the student maintains satisfactory academic progress and continues to meet financial aid guidelines."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2006.