HOUSE COMMITTEE ON EDUCATION

February 24, 2003 Hearing Room E

1:00 PM Tapes 30 - 31

MEMBERS PRESENT: Rep. Vic Backlund, Chair

Rep. Pat Farr, Vice-Chair

Rep. Elaine Hopson, Vice-Chair

Rep. Brad Avakian

Rep. Billy Dalto

Rep. Mary Nolan

Rep. Wayne Scott

STAFF PRESENT: Jim Keller, Committee Administrator

Jeana Harrington, Committee Assistant

MEASURE/ISSUES HEARD: -Informational Meeting

Proficiency-based Admissions Standards System (PASS) presentation, Oregon University System (OUS)

- HB 2585 – Public Hearing

These minutes are in compliance with Senate and House Rules. Only text enclosed in quotation marks reports a speaker’s exact words. For complete contents, please refer to the tapes.

TAPE/#	Speaker	Comments
TAPE 30, A
004	Chair Backlund	Calls meeting to order at 1:04 PM. Welcomes colleagues and audience. Opens informational meeting.
INFORMATIONAL MEETING
006	Jim Keller	Committee Administrator. Introduces Ms. Tell.
009	Christine Tell	Director, Proficiency-based Admissions Standards System (PASS), Oregon University System (OUS). Introduces Mr. Jarvis.
011	Richard Jarvis	Chancellor, OUS. Introduces the issue.
013	Christine Tell	Refers committee to (EXHIBITS A and B). Overviews PASS. Explains how PASS was developed. Describes ‘aligned standards’. Informs of the First Year study (EXHIBIT C).
142	Chair Backlund	Asks if there is a known reason Oregon has a high college attendance rate.
144	Tell	Believes it be accounted to the large university system. Defers to Mr. McDonald.
150	David McDonald	Director of Student Outreach, OUS. Concurs with Ms. Tell’s comments. Adds that high school dropouts rate may account the percentage as well.
162	Tell	Points out that the 25% that do not go onto college is mostly due to financial need. Refers committee to Attachment D of the study. Highlights assessment performance analysis. Explains the implications of the study results.
398	Rep. Hopson	Comments on the study. Poses question regarding remediation.
407	Tell	Explains the remedial rate has not been studied yet. Continues relating remediation to the current study.
TAPE 31, A
005	Jim Keller	Informs the committee of meeting changes.
020	Rep. Farr	Informs the committee of a coming town-hall meeting in Eugene.
028	Chair Backlund	Closes informational meeting. Opens public hearing on HB 2585.
HB 2585 PUBLIC HEARING
030	Jim Keller	Reads Staff Measure Summary (SMS).
033	Stephen Kafoury	University of Phoenix (UP), Art Institute of Portland. Testifies in favor of HB 2585 (EXHIBITS D and E). Relates the measure to HB 2450. Explains HB 2585. Discusses the Art Institute of Portland with regard to the Oregon Opportunity Grant (OOG). Notes the opposing viewpoints on the measure.
091	Pat Hardie	Campus Director, University of Phoenix. Testifies in favor of HB 2585 (EXHIBIT F). Explains the UP program. Notes the change in financial aid over time. Relates changes to the need for the OOG.
174	Rep. Dalto	Asks how the programs at UP differ from those at the state level.
176	Hardie	Explains the differences in the programs.
186	Rep. Dalto	Clarifies UP has locations on community college campuses.
190	Hardie	Affirms.
198	Rep. Avakian	Clarifies the current law.
200	Kafoury	Explains the law.
206	Rep. Avakian	Inquires as to the reasoning of not-for-profit private schools versus that of for-profit private schools.
209	Kafoury	Responds in terms of flexibility.
233	Rep. Avakian	Clarifies the terms further.
236	Hardie	Concurs. Explains accreditation of UP.
247	Rep. Avakian	Asks if there are scholarship and grant programs within UP.
252	Hardie	Affirms.
255	Kafoury	Adds the same is true of the Art Institute of Portland.
260	Rep. Farr	Requests the percentage of students that obtain UP scholarships and grants.
264	Hardie	States she is unsure. Explains the percentage of UP students eligible to apply for the OOG is small.
270	Rep. Farr	Requests a comparison of the community college tuition with the schools.
273	Hardie	Answers that UP tuition cost is around $8,000 a year.
276	Kafoury	Provides perspective as to where UP cost of education falls compared to other schools.
282	Rep. Farr	Clarifies the price is greater than that of a community college.
285	Kafoury	Affirms.
290	Rep. Hopson	Asks why the committee would choose to fund private for-profit schools of higher education when the legislature does not fund private for-profit kindergarten through twelfth grade education.
301	Kafoury	Questions the differentiation between funding of private not-for-profit versus private for-profit when money goes to the student.
313	Rep. Avakian	Comments on funding provided as a private institution.
324	Kafoury	Responds concerning the types of private schools.
333	Rep. Nolan	Asks for the profit obtained by UP.
336	Hardie	States she is unsure, but will provide that information to Rep. Nolan.
345	Rep. Nolan	Requests the stock prices and the performance in the past five years.
350	Kafoury	Differentiates private programs to explain the performance of UP concerning stock.
396	Rep. Dalto	Asks if the OOG money comes from a finite pool.
400	Kafoury	Affirms and adds that he hopes it is not a continually diminishing one.
412	Rep. Dalto	Inquires if UP students would compete for OOG money.
416	Kafoury	Affirms.
418	Rep. Dalto	Comments on the funds remainder in state.
424	Rep. Hopson	Asks for the number of schools that would be involved due to the bill.
428	Kafoury	Explains there would be five or six.
TAPE 30, B
003	Melissa Unger	Oregon Student Association (OSA). Testifies in opposition to HB 2585 (EXHIBIT G). Explains that Oregon cannot afford the bill presently.
031	Julie Sehaneck	Oregon Community College Association (OCCA). Testifies in opposition of HB 2585 (EXHIBIT H).
053	Rep. Farr	Clarifies price of education at UP versus the cost at a community college.
056	Grattan Kerans	Director of Government Relations, OUS. Testifies in opposition of HB 2585.
100	Rep. Avakian	Requests his opinion on the inclusion of not-for-profit private schools in the OOG pool.
102	Kerans	Explains the inclusion is a long-standing policy decision of the legislature.
110	Rep. Avakian	Requests Mr. Kerans specific objection to for-profit private schools inclusion in the bill.
115	Kerans	Reiterates it is a policy choice for the committee.
123	Rep. Avakian	Inquires about investment concerns.
126	Kerans	Restates it is policy issue for the legislators.
133	Rep. Avakian	Asks that, given the current budget, a policy could allow students the opportunity to attend for-profit private schools
143	Kerans	States the students at the universities he represents do not agree with the measure.
154	Rep. Farr	Clarifies the community college costs per credit hour versus the UP cost per credit hour.
160	Sehaneck	Responds she is unsure of the per credit hour definition between the institutions.
164	Rep. Farr	Comments on the figures. Requests an explanation of UP credit.
170	Hardie	Explains the difference in credits with regard to semesters.
175	Chair Backlund	Speaks to Ballot Measure 19 regarding funds withheld from the OOG.
185	Kerans	Responds about the figure.
187	Chair Backlund	Comments.
190	Kerans	Discusses the coming cuts to OOG funds.
213	Rep. Nolan	Requests how OUS is responding to the increasing age of college attendees.
230	Kerans	Replies that the average age of college students is 27. Explains the situations of non-traditional college students already existing within OUS.
251	Rob Wagner	American Federation of Teachers (AFT) of Oregon. Explains the AFT. Testifies in opposition of HB 2585. Defines the reasons behind the opposition. Comments on the proponents reasoning.
299	Jeff Svejcar	Executive Director, Oregon Student Assistance Commission (OSAC). Explains the current financial situation of Oregon students. Outlines the priorities of OSAC with regard to student financial aid. Concludes that the commission does not approve of the addition of students or schools to the pool.
400	Chair Backlund	Closes public hearing on HB 2585. Adjourns meeting at 2:27 PM.

EXHIBIT SUMMARY

A – Informational, PASS, Christine Tell, 9 p

B – Informational, PASS, Christine Tell, 17 p

C – Informational, PASS, Christine Tell, 55 p

D – HB 2585, Stephen Kafoury, 1 p

E – HB 2585, Stephen Kafoury, 2 p

F – HB 2585, Pat Hardie, 4 p

G – HB 2585, Melissa Unger, 2 p

H – HB 2585, Julie Suchanek, 1 p