House leaders propose scholarship program for community college

House Democratic leaders unveiled a multimillion-dollar proposal Wednesday to help Kentucky’s community college students pay tuition.

Speaker Greg Stumbo said the “Work Ready Kentucky” bill, aimed only at Kentucky Community & Technical College System students, would give them “a jump-start to get ready to compete in a very competitive world.”

The bill would use state General Fund money — $13 million the first year, $20 million the second — to pay the remaining tuition costs for new community college students after existing state scholarship aid programs have been used. Money from student loans and work-study programs would not be counted against the scholarship.

The program would be confined to in-state students who have graduated from high school or received a GED before turning 19. They would have to enroll in a KCTCS school immediately after high school and take at least 12 credit hours per semester. Students would have to maintain a 2.0 GPA to keep the scholarship. It would end once a student has received money for six semesters, gets an associate degree or is four years removed from high school.

Rep. Rick Rand, D-Bedford, who chairs the House Appropriations and Revenue Committee, said the money would come from the General Fund, possibly using part of the $700 million in proposed cuts that Gov. Matt Bevin’s budget would spend to shore up the state’s troubled pension systems.

Rand said the bill would “provide investment in education and create opportunities for jobs. ... This is not a cost, this is an investment.”

He said his committee probably would hear testimony on the proposal, House Bill 626, on Tuesday. It eventually will be part of the House budget proposal, which Rand would will emerge the week of March 15.

KCTCS President Jay Box said the bill could add 3,000 to 4000 students to community colleges, which could help offset proposed budget cuts to higher education. Box said many students are affected by unmet financial need because tuition has gone up in the wake of state budget cuts.

“This new program fills that gap, a very important gap we have here in Kentucky,” Box said.

The scholarship program would be administered through the Kentucky Higher Education Assistance Authority.

Stumbo said the idea came from Tennessee, where the 2014 Tennessee Promise program awards gap scholarships to community college students. According to news reports, Tennessee community colleges saw a 6 percent jump in enrollment last fall. Kentucky’s program also would reward full-time enrollment so more students graduate with two-year degrees.

Rand and Stumbo denied that the bill was a retort to Bevin, who made improving workforce development programs a centerpiece of his budget. The Republican governor proposed a $100 million construction bond issue for workforce development programs, although no details have been released. In addition, his budget would divert about $60 million in state need-based aid to workforce development scholarships.

“The $100 million is for bricks and mortar,” Rand said. “This invests in people right out of high school. ... I don’t see how we can borrow $100 million without a plan.”

Overall, Bevin proposed a 4.5 percent spending cut for most state agencies, including universities, this fiscal year, which ends June 30, and a 9 percent cut the following year. Rand said higher education still would face cuts in the House budget, but he declined to provide any details.

Education and Workforce Secretary Hal Heiner said the bill shared common goals with the administration, but said Bevin's plan for workforce development would achieve them without using money designated for the budget.

Heiner said he has been working with higher education officials to use Lottery money "to guarantee that every Kentucky student can seek technical education, an industry-recognized credential and successful entry into the workforce."Senate President Robert Stivers, R-Manchester, said making college tuition more affordable was “a laudable goal,” but “where do they plan to find the money for the pension obligation that we know we have?”

August Julian, president of Bluegrass Community & Technical College in Lexington, said the need for more well-trained workers in Kentucky “is a constant drumbeat.”

“As the economy improves and companies and industries are trying to hire, they’re stressed. and they are really stretched and trying to find ways to grow their businesses, particularly in the technical fields,” Julian said. “There’s such a lack of movement and students coming out who are well-prepared to go out to work.”

That’s why the House proposal would be a win for students and employers, Julian said.

“Obviously, the college presidents are in support of anything that will provide more opportunities and put more scholarship money into the hands of students,” she said. “And it’s a win for employers who need well-trained workers.”

This story was originally published March 2, 2016 at 11:56 AM with the headline "House leaders propose scholarship program for community college."