Sunset review of the Arizona Commission for Postsecondary Education

              ARIZONA STATE SENATE I
RESEARCH STAFF
TO: JOINT LEGISLATIVE AUDIT COMMITTEE DAWN WALLACE
Senator Robert Blendu, Cochair
Representative John Nelson, Cochair
DATE: January 7,2008
LEGISLATIVE RESEARCH ANALYST
HIGHER EDUCATIONCOMMITTEE
Telephone: ( 602) 926- 3 17 1
SUBJECT: Sunset Review of the Arizona Commission for Postsecondary Education
Attached is the final report of the sunset review of the Arizona Commission for Postsecondary
Education, which was conducted by the Senate Higher Education and House of Representatives Higher
Education Committee of Reference.
Pursuant to Title 41, Chapter 27, Arizona Revised Statutes, the Committee of Reference,
after conducting a sunset review on December 11, 2007, recommends that the Arizona
Commission for Postsecondary Education be continued for ten years.
This report has been distributed to the following individuals and agencies:
Governor of the State of Arizona
The Honorable Janet Napolitano
President of the Senate
Senator Timothy S. Bee
Senate Members
Senator Tom OYHalleranC, ochair
Senator Paula Aboud
Senator Linda Gray
Senator Charlene Pesquiera
Senator Jay Tibshraeny
Arizona Commission for Postsecondary Education
Arizona State Library, Archives & Public Records
Senate Republican Staff
Senate Democratic Staff
Senate Research Staff
Senate Resource Center
Speaker of the House of Representatives
Representative James P. Weiers
House Members
Representative Nancy McLain, Cochair
Representative Ed Ableser
Representative Nancy Barto
Representative Jennifer Burns
Representative Chad Campbell
House Majority Staff
House Democratic Staff
House Majority Research Staff
Chief Clerk
D W/ j as
Attachment
Senate Higher Education and House Higher Education
Committee of Reference Report
ARIZONA COMMISSION FOR POSTSECONDARY EDUCATION
Background
Pursuant to 5 41 - 2953, Arizona Revised Statutes, the Joint Legislative Audit Committee ( JLAC)
assigned the sunset review of the Arizona Commission for Postsecondary Education ( ACPE) to the
Arizona Auditor General.
The ACPE reviews and recommends higher education policies, administers financial aid
programs, including the Leveraging Educational Assistance Partnership ( LEAP), the Private
Postsecondary Education Student Financial Assistance Program ( PFAP) and the Postsecondary
Education Grant ( PEG), and also provides a forum for public and private postsecondary education
institutions and their stakeholders for discussion of issues of mutual interest.
The 16- member ACPE consists of 14 gubernatorial appointments that serve four- year terms, in
addition to the executive directors of the Arizona Board of Regents and the State Board for Private
Postsecondary Education, who are not eligible to vote on any review of a postsecondary institution.
Additionally, the ACPE oversees the Arizona Family College Savings Program ( AFCSP), which
allows individuals to save money for a child's college education in financial plans compatible with
Internal Revenue Code 5 529. Interest derived from monies deposited in these plans in addition to
withdrawals for qualified higher education expenses are tax- exempt. The AFCSP is available to both
Arizona residents and nonresidents. Beginning in FYs 2007- 2008 through 201 1- 201 2, any contribution
to a qualified 529 plan in any state is eligible for an Arizona income tax deduction. The maximum
amount a taxpayer may deduct is limited to $ 1,500 for married persons filing jointly, or $ 750 for single
or head of household.
The AFCSP is overseen by a ten- member oversight committee, separate from the ACPE,
consisting of: I) the State Treasurer or the State Treasurer's designee; 2) the chairperson of the State
Board for Private Postsecondary Education or the chairperson's designee; 3) three members of the
general public, each of whom possesses knowledge, skill and experience in accounting, risk
management or investment management or as an actuary; 4) a certified financial planner; 5) a certified
public accountant; 6) an attorney with a State Bar of Arizona certificate in estates and trusts; 7) an
individual with investment, asset management and financial related expertise; and 8) an individual
employed by a community college or university with investment, asset management and financial
related expertise.
Budget
According to the Joint Legislative Budget Committee's ( JLBC) FY 2007- 2008 Appropriations
Report, the ACPE's FY 2007- 2008 appropriated staff consists of 10.0 full- time equivalent positions,
appropriated state General Fund budget level of $ 7,420,800 and $ 2,941 ,100 in other appropriated funds,
as detailed as follows:
Administration
Arizona College and Career Guide
Arizona Minority Educational Policy Analysis Center
Case Managers
Family College Savings Program
Leveraging Educational Assistance Partnership
Postsecondary Education Grant Program
Private Postsecondary Education Student Financial
Assistance Program
Twelve Plus Partnership
Committee Sunset Review Procedures
The Committee of Reference held one public meeting on Tuesday, December 1 1,2007, to
review the audit report prepared by the Auditor General and the additional four sunset factors
prepared by the Arizona Commission for Postsecondary Education, as required by A. R. S. tj 41-
2954, subsection E, and to receive public testimony. The Committee of Reference also received
testimony from the following:
Dr. April Osborn, Executive Director, Arizona Commission for Postsecondary Education
Committee of Reference Recommendations
The Committee of Reference recommends that the ACPE be continued for ten years.
Attachments
1. Committee Agenda Notice
2. Committee of Reference Meeting Minutes
3. Auditor General Presentation Handouts
4. Chairman's Letter requesting additional sunset factors pursuant to A. R. S. tj 41- 2954
5. ACPE Response to additional sunset factors
COMMITTEE OF
REFERENCE
AGENDA NOTICE
Interim agendas can be obtained via the Internet at http: llwww. azleg. state. az. usllnterimCommittees. asp
ARIZONA STATE LEGISLATURE
INTERIM MEETING NOTICE
OPEN TO THE PUBLIC
SENATE HIGHER EDUCATION AND HOUSE HIGHER EDUCATION COMMITTEE OF
REFERENCE
Date: Tuesday, December 11,2007
Time: 1 : 30 P. M.
Place: SHR I
AGENDA
1. Call to Order
2. Introduction of Members
3. Arizona Commission for Postsecondary Education Sunset Audit
Presentation by the Auditor General
Agency Response
Public Testimony
Discussion and Recommendations by the Committee of Reference
4. Western Interstate Commission for Higher Education ( WICHE)
Presentation by the Arizona Board of Regents
Public Testimony
Discussion and Recommendations by the Committee of Reference
5. Adjourn
Members:
Senator Tom O'Halleran, Co- Chair
Senator Paula Aboud
Senator Linda Gray
Senator Charlene Pesquiera
Senator Jay Tibshraeny
Representative Nancy McLain, Co- Chair
Representative Ed Ableser
Representative Nancy Barto
Representative Jennifer Burns
Representative Chad Campbell
Persons with a disability may request a reasonable accommodation such as a sign language interpreter, by contacting the
Senate Secretary's Office: ( 602) 926- 4231 ( voice). Requests should be made as early as possible to allow time to arrange the accommodation.
Page 1 of 1
COMMITTEE OF
REFERENCE
MEETING MINUTES
ARIZONA STATE LEGISLATURE
SENATE HIGHER EDUCATION AND HOUSE HIGHER EDUCATION
COMMITTEE OF REFERENCE
Minutes of the Meeting
Tuesday, December 1 1,2007
1: 30 p. m., Senate Hearing Room 1
Members Present:
Senator Tom O'Halleran, Cochair Representative Nancy McLain, Cochair
Senator Paula Aboud Representative Ed Ableser
Senator Linda Gray Representative Nancy Barto
Senator Charlene Pesquiera Representative Jennifer Burns
Representative Chad Campbell
Members Absent:
Senator Jay Tibshraeny
Staff:
Dawn Wallace, Senate Higher Education Research Analyst
Cochairman O'Halleran called the meeting to order at 155 p. m. and attendance was
noted.
Arizona Commission for Postsecondary Education Sunset Audit
Shan Hays, Performance Audit Manager, Auditor General's Office, gave a
presentation on the findings of the Auditor General's Office in its performance audit and
sunset review of the Postsecondary Education Commission and submitted the handout
( Attachment A) entitled Postsecondary Education Commission. Mr. Hays answered
questions posed by the Committee.
April Osborn, Executive Director, Arizona Commission for Postsecondary
Education, gave the Commission's response to the Auditor Generals Sunset Audit and
answered questions posed by the Committee.
John Mangum, Arizona Private Postsecondary Schools Association, testified in
support of the continuation of the Commission.
Senate Higher Education and House Higher
Education Committee of Reference
December 11,2007
Page I
Don Isaacson, lndependent Colleges and Universities of Arizona, testified in
support of the continuation of the Commission.
Senator Linda Gray moved that the Senate Higher Education and
House Higher Education Committee of Reference recommend that
the Arizona Commission for Postsecondary Education be continued
for ten years until June 30,2018. The motion passed by voice vote.
Western Interstate Commission for Higher Education ( WICHE)
Dawn Wallace, Senate Higher Education Research Analyst, gave an overview of the
WICHE program and answered questions posed by the Committee.
Joel Sideman, Executive Director, Arizona Board of Regents, gave informational
testimony pertaining to the WICHE program and answered questions posed by the
Committee.
Louise Lynch, Arizona Board of Regents, answered questions posed by the
Committee.
Don Isaacson, lndependent Colleges and Universities of Arizona, testified in
support of the WICHE program.
Senator Linda Gray moved that the Senate Higher Education and
House Higher Education Committee of Reference recommend that
the WICHE program be continued for ten years until June 30, 2018.
The motion passed by voice vote.
There being no further business, the meeting was adjourned at 3: 02 p. m.
Respectfully submitted,
-
Committee Secretary
( Tapes and attachments on file in the Secretary of the Senate's Office/ Resource Center, Room 115.)
Senate Higher Education and House Higher
Education Committee of Reference
December 11,2007
Page 2
AUDITOR GENERAL
PRESENTATION
HANDOUT
Postsecondary Education
Commission
Performance Audit and Sunset Review
October 2007
Overview
*:* Background
4.2 findings on Family College
Savings Program
Features
= Oversight
Commission duties
*:* Outreach and education
*:* Financial assistance programs
0529 program ( Family College Savings) I;.--. 1
Assets in AZ resident accounts
6130107
Total: Waddell and
$ 45.9 million
F i i i Cdlege
525.7
Savings Bank
$ 15.6
- --
a
Other 529 program investors
*:+ Out- of- state residents in AZ programs
= 35,350 investors
$ 330 million in assets
8O0/ 0 with Waddell and Reed
*:* Terminated providers
1,130 Arizona residents; $ 8.7 million
= Working on moving these accounts
Past criticisms resolved
+ Poor ratings for Arizona providers
( 2004,2005, 2006)
*:* Commission acted
= Providers with high fees terminated
= Another provider lowered fees
*:* Arizona no longer poorly rated
Comparison of 529 program to
high- quality characteristics
Fl Low fees and expenses
Fl State tax deduction starting 1/ 1/ 08
! Zl Range of choice
High limit on contributions
El Low minimum contributions
R Customer service monitoring
I Recommendation
+ Identify relevant customer service and
satisfaction information; and
+ Obtain and monitor the information
Finding 2
Provider monitoring has
improved, but should be further
enhanced
Asset- based fee provision
+ One provider pays O/ O of assets as a fee
*:* Commission plans to add to other
contracts
Treat providers equally
Can provide money to manage program
*:* Rules needed to accept asset- based fee
monies
= Use should be limited to 529 program
. -
-,
Commission for Postsecondary
Education
Performance Audit
Oaober 2007
Shan Hays
December 11,2W7
-
Z,
CHAIRMAN'S LETTER
ON ADDITIONAL
SUNSET FACTORS
Senator Tom O'Halleran
4 DISTRICT 1
STATE SENATOR
FORTY- EIGHTH LEGISLATURE
CAPITOL COMPLEX. SENATE BUILDING
PHOENIX. ARIZONA 85007- 2890
PHONE: ( 602) 926- 4079
FAX ( 602) 417- 3101
firi;. nnn $$ fnip P% crtnfr
EMAlL tohaller@ azleg gov
June 20, 2007
CupitoI Complex
1700 West IVushington
I'hoenk, AZ 85007
Mr. Michael R. Rooney, Chairman
Arizona Commission for Postsecondary Education
2020 N. Central Avenue, Suite 550
Phoenix, AZ 85004
Dear Mr. Rooney:
COMMITTEES:
Higher Education. Chairman
Education K- 12
Health. V~ ce- Chairman
The sunset review process prescribed in Title 41, Chapter 27, Arizona Revised Statutes, provides a
system for the Legislature to evaluate the need to continue the existence of state agencies. During the
sunset review process, an agency is reviewed by a legislative committee of reference. On completion of the
sunset review, the committee of reference recommends to continue, revise, consolidate or terminate the
agency.
The Joint Legislative Audit Committee ( JLAC) has assigned the sunset review of the Commission
for Postsecondary Education to the committee of reference comprised of members of the Senate Higher
Education Committee and the House of Representatives Higher Education Committee. JLAC has directed
the Auditor General to conduct a performance audit of the Commission for Postsecondary Education.
Pursuant to A. R. S. 9 41- 2954, the committee of reference is required to consider certain sunset
factors in deciding whether to recommend continuance, modification or termination of an agency. In
addition to the 12 sunset factors that are addressed in the Auditor General performance audit, please
provide your agency's response to the required factors as listed below:
1. ldentify the problem or the needs that the agency is intended to address.
2. State, to the extent practicable, in quantitative and qualitative terms, the objectives of the agency and
its anticipated accomplishments.
3. Identify any other agencies having similar, conflicting or duplicate objectives, and an explanation of
the manner in which the agency avoids duplication or conflict with other such agencies.
4. Assess the consequences of eliminating the agency or of consolidating it with another agency.
In addition to responding to the four factors listed above, please provide the committee of
reference with copies of your most recent annual report. Your response should be received by September
Mr. Michael R. Rooney
June 20,2007
Page 2
1, 2007, so we may proceed with the sunset review and schedule the required public hearing. Please submit
the requested information to:
Dawn Nazary
Arizona State Senate
1700 West Washington
Phoenix, AZ 85007
Thank you for your time and cooperation. If you have any questions, please feel free to contact
me at 602- 926- 5584 or Dawn Nazary at 602- 926- 3 17 1.
State Senator
Chairman, Higher Education Committee of
Reference
cc: Representative Nancy McClain
Dr. April Osbom, Executive Director, Commission for Postsecondary Education
Mr. Brian Lockery, House of Representatives Majority Research Analyst
Mr. Javan Mesnard, Senate Majority Policy Advisor
Ms. Barbara Guenther, Senate Minority Policy Advisor
Ms. Karla Phillips, House of Representatives Majority Policy Advisor
Mr. Alan Eder, House of Representatives Minority Policy Advisor
ACPE RESPONSE
( ADDITIONAL
SUNSET
FACTORS)
ARIZONA STATE SENATE
RESEARCH STAFF @-
* 1911 '
TO: MEMBERS OF THE SENATE DAWN WALLACE
HIGHER EDUCATION & LEGISLATIVE RESEARCH ANALYST
HIGHER EDUCATION COMMITTEE
HOUSE HIGHER EDUCATION Telephone ( 602) 926- 3 171
COMMITTEE OF REFERENCE Facslm~ le ( 602) 926- 3833
DATE: November 26,2007
SUBJECT: Arizona Commission for Postsecondary Education ( ACPE) Response to Statutory
Sunset Review Questions
Attached is the ACPE response to the four statutory questions required as part of the Committee
of Reference review. The Executive Director of the ACPE will be in attendance at the December 3,
2007, Committee of Reference meeting to answer any questions related to the sunset audit conducted by
the Auditor General and the attached responses.
Please feel free to contact me if you need any further assistance.
DWIjas
Attachment
cc: Ingrid Garvey
Arizona Commission for Postsecondary Education
2020 North Central, Suite 550
Phoenix, Arizona 85004- 4503
Tel: ( 602) 258- 2435 Fax: ( 602) 258- 2483
Website: www. azhighered. gov
September 21, 2007
Senator Tom O'Halleran
Capital Complex, Senate Building
Phoenix, Arizona 85007- 2890
Dear Senator O'Halleran,
Thank you for leading the sunset review process of the Arizona Commission for Postsecondary
Education. I have prepared a response to the additional Sunset Factors for the Higher
Education Committee of Reference and it is enclosed with this letter. Likewise, the Arizona
Commission for Postsecondary Education 2006 Annual Report is enclosed.
The performance audit team is conducting an extremely thorough and detailed performance
audit and sunset review of the Commission. Unfortunately, the performance audit for the ACPE
is not yet in its final form. A revised preliminary report draft of the ACPE performance report
was delivered to my office by the Auditor General's staff this week. This preliminary report draft
will be taken before the Arizona Family College Savings Program Oversight Committee on
September 27, 2007 for their review and response. The Auditor General's office informed the
ACPE staff that a final report will be forthcoming based upon that meeting and the feedback of
the Oversight Committee.
Thank you for the time and attention that you and the members of the Higher Education
Committee of Reference commit to this important agency review process. I look forward to both
completing and learning from the performance audit process.
Sincerely,
Dr. April L. Osborn, Executive Director
Cc. Dawn Nazary,
Response to Additional Sunset Factors
Arizona Commission for Postsecondary Education
Prepared for the Higher Education Committee of Reference
of the Joint Legislative Audit Committee
by Dr. April L. Osborn, Executive Director
September 2007
Additional Sunset Factor 1 :
Identify the problem or the needs that the Agency is intended to address
The problems and needs to be addressed by the Arizona Commission for
Postsecondary Education ( ACPE) have been identified by the legislature and are
outlined in ARS 15- 1 851 through ARS 15- 1 879. The core ACPE responsibilities
are in the area of student financial assistance. The Commission has been
administering Arizona's student financial assistance programs since 1976, when
the Commission was initially awarded eligibility status to receive student financial
aid federal funds in order to administer the Arizona State Student Incentive Grant
( SSIG) Program.
The Arizona Commission was originally established within the Arizona Board of
Regents ( ABOR). However, in legislative action taken in 1994 the Commission
was permanently separated from ABOR. These actions were taken to allow the
Commission to meet federal requirements for the administration of federal
programs. Likewise, it allowed the Commission to serve as a neutral, non-regulatory
agency to serve all constituencies within the higher education system
including community colleges, public universities, private colleges and
universities, and vocational programs. The 1994 enabling legislation named a
number of responsibilities to be undertaken by the Commission and many of
these ACPE responsibilities have remained constant, including:
administration of the Leveraging Educational Assistance Partnership grant
( formerly SSIG),
administration of the Paul Douglas Teacher Scholarship Program
repayments and the ATlP repayment programs,
provision of a forum for private and public postsecondary education
institutions to discuss issues of mutual interest,
provision of reports and the promotion of collaborative studies on issues of
mutual interest for postsecondary education, and
compilation and dissemination of information to the public regarding
postsecondary education opportunities.
Over time the enabling statute for the ACPE has been modified in a number of
ways. The most notable changes required the ACPE to take on additional
responsibilities of:
administration of the Private Postsecondary Education Student Financial
Assistance Program ( PFAP) in 1996,
administration of the Arizona Family College Savings Program ( AFCSP)
in 1997, including the initiation of the AFCSP Trust in 2005,
administration of the Postsecondary Education Grant Program in the 2006
legislative session,
administration of the Early Graduation Scholarship Grant Program in the
2007 session, and
oversight of the Foster Youth Transition to Postsecondary Education Case
Manager Program, also in the 2007 session.
In summary, the core areas of responsibility, as outlined by statute, for the
Commission have remained constant since 1994. Over the past decade, the
legislature has required the Commission to assume additional administrative
duties with the addition of PFAP, the Arizona Family College Savings Program,
the Postsecondary Education Grant Program, and the Early Graduation
Scholarship Grant Program.
Additional Sunset Factor 2:
State, to the extent practicable, in quantitative and qualitative terms, the
objectives of the aqency and its anticipated accomplishments.
Objective 1: Effective, efficient administration of student financial
assistance programs under the ACPE.
Leveraging Educational Assistance Partnership ( LEAP)
$ 2.8M was disbursed to more than 4,000 low income students attending
47 postsecondary institutions including community colleges, public
universities, and private colleges and universities in FY 2007 through the
LEAP program.
Private Postsecondary Student Financial Assistance Program ( PFAP)
$ 150,000 was disbursed to 101 students with financial need who
graduated from Arizona community colleges and attended private colleges
and universities to attain a baccalaureate degree in 2006.
Postsecondary Education Grant ( PEG) Program
PEG program funds were released to the ACPE in November. Staff was
hired, the program developed, technology was in place, and in the last
three months of FY2007 $ 1.8M dollars were disbursed to 1,077 students
seeking a baccalaureate degree from Arizona private colleges or
universities.
Repayment Programs
Seventy- six students were in repayment for Paul Douglas and PFAP
forgivable loans in FY 2007. Likewise, forty- five students were in process
for repayment or have been turned over to the Attorney General's office
for collection in that year
Early Graduation Scholarship Grant Program
This new program is designed to provide an incentive to motivate high
school students to graduate early and transition into a postsecondary
educational experience. The EGSG Program is currently under
development.
Arizona Family College Savings Program
More than 45,000 accounts were opened and more than $ 422 M was
saved by families to pay for college expenses in the Arizona Family
College Savings Program since 1999. The number of Arizona accounts
increased 21.5% in FY 2007.
Objective 2: To provide information to parents and students to assist in
college preparation, planning, transition, and success
Arizona College and Career Guide
15,000 copies of this publication which provids a comprehensive listing of
all Arizona postsecondary institutions, programs offered, and tuition and
fees were distributed to high school counselors, high school seniors,
vocational rehab program administrators, postsecondary education
professionals, and other parties of interest in FY 2007.
13,000 visits were counted on the Arizona College and Career web site
that same year.
Countdown to College
80,000 copies of this 12- page insert detailing financial aid processes and
opportunities and college- going information for families and students were
distributed across the state on Sunday, February 3, 2006 in the Arizona
Republic. This is a partnership effort with USA Funds.
Web portal for college- going and financial assistance
41,880 visits were counted for the ACPE website which includes extensive
information regarding student financial aid and instructions for completing
the processes and meeting the deadlines for securing student financial
aid.
College Savings Planner
2,000 copies of a 16 page college savings planning document, which
describes and compares various savings vehicles families can use to save
for college, were distributed to families and 13,140 downloads of the
planner from the website took place in FY 2007.
Objective 3: Serve as a forum to problem solve and seek opportunities
across all sectors of public and private postsecondary
education and through policy analysis and research to identify
issues of common interest to the postsecondary education
leaders.
College Goal Sunday Program ( statewide)
More than 2,800 parents and students attended the February 2007 event
where more than 310 college financial aid professionals assisted them in
completing the Free Application for Federal Student Aid ( FAFSA).
18,974 visits were counted on the College Goal Sunday website where
information and line- by- line instructions are available for the public's use in
completing the FAFSA on- line.
Arizona Minority Education Policy Analysis Center ( AMEPAC)
Published studies include
The Road to Higher Education, 2006;
Investing in Arizona's Future, 2005; and
Minority Student Report 2007: A Snapshot of Arizona's Educational
Achievement ( being printed now)
Developing Arizona's Human Capital Conference & Pathways to Higher
Education Awards
The 8' h conference takes place on November 8 & 9,2007 with a goal of
providing a forum for discussion and planning for the improvement of the
Arizona postsecondary education system.
20 applications describing Arizona college access, transition, and success
programs were received and 5 award winners were recognized at the
2006 conference as a means to publicize Arizona's best practices.
Additional Sunset Factor 3:
Identify any other agencies having similar, conflicting or duplicate
obiectives, and an explanation of the manner in which the agency avoids
duplication or conflict with other such agencies.
The state entity closest in mission to the Arizona Commission for Postsecondary
Education is the Arizona Board of Regents ( ABOR). ABOR also serves higher
education, but unlike the ACPE, ABOR is a regulatory entity - and that oversight
is limited to the public universities.
Along with their oversight and regulatory responsibilities, ABOR administers
some student financial aid programs for the universities. In contrast, the ACPE
administers four state grants and the Arizona Family College Savings Program,
and these programs serve students attending Arizona community colleges, public
universities, private colleges and universities, and vocational programs.
There is not duplication of effort nor any conflict between the Arizona
Commission for Postsecondary Education and the Arizona Board of Regents. In
fact, there are a number of collaborative efforts between the two entities, all of
which are to benefit students and the state. In addition, the Executive Director
for ABOR serves as an ACPE Commissioner.
Additional Sunset Factor 4:
Assess the consequences of eliminating the aqencv or consolidatinq it with
another aqency.
The mission of the ACPE is to expand access and increase success in
postsecondary education for Arizonans. All programs and services provided
through the ACPE are designed to meet this goal; thereby producing more
educated citizens for Arizona. The termination of the ACPE would result in a loss
to the welfare of Arizona citizens and the state in two areas.
Student Financial Assistance Programs:
Without the ACPE there is no neutral state entity to administer state and federal
student financial aid programs to students attending all sectors of the higher
education community including community colleges, public universities,
independent colleges, career colleges and vocational schools. Furthermore, no
statewide governing body exists in Arizona for either the community colleges or
the 193 private postsecondary institutions to which the ACPE statute
responsibilities could be shifted. And most importantly, the ACPE has the
credibility and the neutrality to administer these important programs equitably
among all institutions and all students.
Likewise, the Arizona 529 plan is designed to encourage families to establish
college savings plans for higher education at any accredited postsecondary
institution. The direction of this important program by a postsecondary education
entity, with the assistance of an Oversight Committee of financial professionals,
adds credibility to the plan as a financial assistance tool. The college savings
plan is a component of the state's financial assistance programs and should be
housed with a higher education entity.
And finally, there is a cost savings to the state for housing student financial
assistance programs, PFAP, LEAP, PEG, EGS, and the Arizona Family College
Savings Program, within one entity. Many families and students are served by
more than one of these programs: therefore, awareness, promotion and
education for all programs can be consolidated. Likewise, many of the 83 higher
education institutions whose students receive financial aid from the ACPE
participate in multiple ACPE programs. This provides for combined institutional
audits, mailings, and reduced travel expenses. Because the ACPE administers
these programs from a central location, the cost to the State is reduced.
Forum for Discussion and Problem Solvinq that Includes All Sectors of Education
and Collaborative Efforts that Serve Students Across All Sectors of Higher
Education
There is no other venue in the state where senior level representatives from all
sectors of postsecondary education come together to look at " system" issues and
opportunities. Evidence of the value of this forum is seen in the ACPE
collaborative initiatives and task forces.
The most significant example of this collaboration is the College Goal Sunday
program. This annual event is held at 30 locations including high schools,
community colleges, public and private universities, private colleges, and " one
stop shops." Likewise more than 31 0 financial aid professionals from all sectors
of postsecondary education volunteer to help families at the statewide event.
Other statewide and system- wide ACPE events that lead to policy discussions
and solution of problems include the Developing Arizona's Human Capital
Conference, Pathways to Education Awards, and the Next Steps Articulation
Conference. Other Commission initiatives designed to cross postsecondary
education sectors include the Arizona Minority Education Policy Analysis Center,
the Postsecondary ArticulationITransfer Task Force, and the College Goal
Sunday Task Force. Each group has a mission and goals that serve all students
in all sectors of higher education.
In summary, if the Arizona Commission for Postsecondary Education ceased to
exist it would ( 1) negatively affect the state student financial aid programs and ( 2)
inhibit collaborative actions that benefit students regarding issues that cross
sectors of postsecondary education.
Regarding the student financial assistance programs, the State could disperse
the five state financial aid programs administered by the ACPE to various
entities, e. g. Arizona Board of Regents, individual public universities, the ten
community college districts, or the Treasurers Office. However, the economies
of scale realized by centralizing five student financial assistance programs would
be lost. For example, the ACPE is working to make a single application suffice
for all state grants programs. Likewise, students can go to a single website for
information regarding all programs. In addition, a dispersal of programs would
present a challenge for the State as it must name a single entity to accept federal
program dollars.
Finally, if the Arizona Commission for Postsecondary Education did not exist, a
forum where all sectors of postsecondary education gather to solve problems in a
student centered manner would no longer exist. Therefore, the collaborations,
events, and initiatives undertaken by the Arizona Commission for Postsecondary
Education would cease to exist, as well.
ARIZONA COMMISSION FOR
POSTSECONDARY EDUCATION
. . . expanding access and increasing success
in postsecondary education for Arizonans
ANNUAL REPORT
FISCAL YEAR 2005- 2006
The Arizona Commission for Postsecondary Education ( ACPE)
2005 - 2006 Annual Report
Expanding Access and Increasing Success
in Postsecondary Education for Arizonans
Submitted December 28,2006
Dr. April L. Osborn, Executive Director
Introduction
The work of the Arizona Commission for Postsecondary Education ( ACPE) is guided by
a 5- year strategic plan. The purpose of the plan is to provide focus for the activity of this
small agency and its seven staff members in order to increase productivity and impact
in the areas of its statutory authority. The mission and goals were accepted by
Commissioners in late 2004 and this report reflects the second year review of goals,
performance, and outcomes as outlined in the plan.
The 16 Governor- appointed Commissioners identified an agency mission of expanding
access and increasing success in postsecondary education for Arizonans. Three goals
were named to achieve this mission: ( 1) increase available student financial resources,
( 2) implement strategies to help students and their families plan, enter, and succeed in
postsecondary education, and ( 3) provide a forum for all sectors of higher education to
dialogue, partner, and problem solve issues of mutual interest. A roster of the ACPE
Commissioners follows on the next page.
The Arizona Commission for Postsecondary Education staff has identified efficient and
effective administration of the financial assistance programs under their management as
the primary strategy to achieve Goal 1. The second and third goals are supported
through policy analysis and research, as well as by collaborative action led by ACPE
task forces and participation in college access initiatives led by foundations,
government, or non- profit entities with similar missions.
The strategies of efficient and effective administration and leveraging resources through
collaboration and partnerships are born of necessity, as the agency received less than
$ 20,000 of state general funds for agency operations in 2005- 2006. Program
administration fees, donations, and grants fund the operational budget of the agency.
This ACPE annual report is organized in three sections, each section describes the
activities and services related to each of the three goals. The conclusion summarizes
how the parts of this report relate to the plan and the future of the Commission.
Commissioners 2005 - 2006
Arizona Commission for Postsecondary Education
Michael R. Rooney, Chair
Attorney at Law
Sacks Tierney, P. A.
Dr. Raul Bejarano
Superintendent
Sunnyside Unified School District
Dr. Sarah Bickel
Associate Provost for Student Affairs
Northern Arizona University
Charles Blagg
Director, Truck Driving School
Glendale Community College
Dr. Terry Calaway
President
Central Arizona College
Dr. Eugene Garcia
Vice President for Education Partnerships
Arizona State University
Vernon E. Jacobs
Superintendent ( Retired)
Glendale Union H. S. District
KC Miller
Founder & Director
Southwest Institute of Healing Arts
Michael A. Smith
Executive Director
Toni & Guy Academy
Joel Sideman
Executive Director
Arizona Board of Regents
Teri Candelaria Dr. Anna Solley
Executive Director President
Arizona Board for Private Postsecondary Education Phoenix College
Dr. David Curd
President
College of Humanities & Sciences
Vacant Position ( 1)
( private postsecondary
accreditation)
Dr. April L. Osborn
Executive Director
Steven Corey
Chief Operating OfficerICFO
Prescott College
Vacant Position ( 1)
institution with regional ( private postsecondary institution offering vocational
ed programs with national accreditation)
Carol Williams
Program and Office Administrator
Judi Sloan
Communications Specialist
Commission Staff
Rosario Segura
AZ 529 College Savings Plan Administrator
Marjorie DeRubeis
Student Financial Aid Director
Mila Zaporteza
Business & Student Financial Assistance Manager
Jennifer Hannon
Assistant Financial Aid Director
Goal 1: Increasing available student financial resources
Core responsibilities of the ACPE are related to postsecondary student financial
assistance programs. These responsibilities include ( 1) administration of Leveraging
Educational Assistance Partnership ( LEAP), ( 2) administration of the Private
Postsecondary Financial Assistance Program ( PFAP), ( 3) the addition in the 2006
legislative session of planning and administering the new Postsecondary Education
Grant ( PEG) Program ( 4) management of grant repayment programs, ( 5) oversight of
the state student loan guarantor, and ( 6) management of the Arizona Family College
Savings Program. In addition, the reader will find a description of a statewide
collaborative effort led by the ACPE to seek additional sources of student financial
assistance through the work of the Student Financial Aid Task Force in the Goal 3
section of the report.
1 . I Leveraging Educational Assistance Partnership ( LEAP)
The LEAP program, formerly known as the State Student Incentive Grant or SSlG
program, has been in existence in Arizona since 1972. The LEAP program is a grant
that financially assists eligible students with substantial financial need, enabling them to
pursue higher education goals. The Arizona Commission for Postsecondary Education
administers the program, ensuring adherence to all federal regulations and the Arizona
Administrative Code.
The U. S. Department of Education assigns allotments based on a state's 1976
postsecondary education enrollment figures; each state, in turn, must match this
allotment through appropriated state funds. Eligible postsecondary institutions then
provide funds to match those appropriated by the state. Accredited public and private
institutions are encouraged to apply to be reviewed by the ACPE for eligibility to receive
these funds.
Federal guidelines require that the total LEAP award to a student may not be more than
$ 2,500 or less than $ 100 for each program year. If the student withdraws, is expelled,
or is reduced below half time status, the institution is to collect the award and return it to
the Commission.
A table follows on the next page titled Seven Year Summary of LEAP Awards. It
illustrates the changes in the state LEAP program over time.
Year
Leveraging Educational Assistance Partnership ( LEAP)
Seven Year Summary of LEAP Awards
FYI 999- 2006
LEAP Awards Distributed
Funds Number of Awards Average Award
Awarded Amount
The state of Arizona LEAP administration is decentralized; therefore, the Commission
delegates certain functions to participating institutions. The ACPE establishes eligibility
and determines a proportional distribution of funds ( based on the number of students) to
institutions. LEAP recipients are selected by the institutions on the basis of substantial
financial need established through federal and state statute.
Therefore, the changes in the size of the award and the number of grants given are
partially determined by each postsecondary institution according to their enrollment
plan. Decisions are made by each institution, within federal parameters, on how best to
use the money for both students and institutions. This decentralized system has been
successful for the 47 institutions participating each year.
Compliance with federal guidelines is critical to effective LEAP administration. Detailed
reports to the U. S. Department of Education are required. Furthermore, on- site LEAP
program compliance audits are performed every two years by ACPE staff. This cycle of
compliance audits started in the fall of 2006.
In 2005 - 2006, more than 4,100 Leveraging Educational Assistance Partnership
( LEAP) awards were provided to 47 postsecondary institutions totaling $ 2.8 million in
leveraged financial aid ( state, federal, and institutional) to financially needy students.
Institutional distribution of LEAP awards in 2006 resulted in the following distribution
percentages: 33% to public universities, 50% to community colleges, 15% to proprietary
schools, and 2% to private colleges ( as these categories are defined by the federal
government).
Improvements made in the program administration this year were guided by the
strategic plan and include updated software and enhanced security measures for
student data transmission. Over the last two years an information technology
consultant was contracted to improve and update the LEAP database to ensure
accuracy of reports and ensure secure data transmission and collection. The software
improvements are designed to create an efficient, automated process for generating
program reports, requiring less staff time while effectively managing the program. The
number and types of reports have been designed to serve both federal reporting
requirements and LEAP management needs. Additionally, a new secure web site for
institutional transmission of student data to the ACPE was successfully implemented
and has been well received by the postsecondary institutions in the Program.
Annual performance measures collected through anonymous surveys from institutional
financial aid administrators have consistently indicated 94% or greater satisfaction with
administration of this program by the ACPE. In order to collect additional data on
student financial need an informal survey was carried out in 2005. This survey received
a 67% return rate of the 47 institutions participating in the LEAP grant, meaning 32
responded. The Financial Aid Directors responding identified an additional 27,744
students who qualified for the LEAP funds, but funding limitations provided awards or
grants for only the aforementioned 4,131 students in 2006. There continues to be
frustration on the part of the student financial aid community regarding the limited
resources available to assist students seeking higher education goals. Overall, the
financial aid directors of the LEAP institutions expressed grave concern over the low
amount of financial aid available for Arizona students and its effect on low- income and
lower middle- income students' college- going expectations and enrollment.
I. 2 Private Postsecondary Education Student Financial Assistance ( PFAP)
The Arizona Private Postsecondary Education Student Financial Assistance ( PFAP)
program was initiated in the spring of 1996. This program was designed to encourage
community college graduates to enroll in and graduate from baccalaureate degree
granting private postsecondary institutions; thereby realizing a savings to the State of
Arizona.
By statute ( ARS 15- 1 852) and Arizona Administrative Code rules ( R7- 3- 401 through
R7- 3- 405), the PFAP program provides up to $ 1,500 per fiscal year to eligible Arizona
community college graduates ( i. e., those holding Associate Degrees from an Arizona
public community college) who prove financial need and who enroll as a full- time
student in a baccalaureate degree program at an accredited, baccalaureate degree-granting
private postsecondary educational institution in Arizona. The maximum grant
amount allowed to a single student is limited to $ 3,000.
The PFAP program funding was significantly reduced in 2003 from $ 318,000 to
$ 170,500, resulting in fewer students receiving the grant. In response to the limited
funding, a pilot program was instituted in 2004 - 2005. This pilot program limited the
maximum grant to $ 1,000 and required that the student re- apply for a second year
grant. These changes were being tested in order to make grants available to more
students to meet the original intent of the PFAP program. This pilot program was
deemed ineffective by the staff and the Commissioners repealed the pilot program in
2006, and staff was instructed to revert back to the original procedures as developed.
In the 2006 legislative session, the level of PFAP funding was raised, again, to
$ 400,000. The Commission advertised the PFAP program to all of the 32 eligible private
institutions and community colleges. The ACPE welcomes these new funds and has
instituted an aggressive marketing effort to promote the program with both community
college students and private postsecondary students.
More than 1,200 students have benefited from the PFAP program since the program
inception. Of these grantees 35% were minority students. In 2005, the percentage of
students from whom repayment was sought was just under lo%, with an additional 4%
of PFAP grantees yet to be documented as either completers or entered into the
repayment program. The program repayment statistics are not yet available for 2006.
The program completion rate is based upon the graduation status of students who have
passed the three year limitation for graduation. The students from whom repayment is
sought received the grant, but did not complete a bachelor's degree within the allowed
three years.
Annual performance measures collected through anonymous surveys from
postsecondary institution administrators of the PFAP program in 2005 - 2006 indicated
94% or greater satisfaction with administration of this program by the ACPE.
The PFAP grant and the new PEG Program are similar in many respects and a single,
automated application process would benefit students in their search for financial
assistance. This single and fully automated application and funding processes are
goals of the ACPE staff. A request has been made for funds to develop these
automated processes for the benefit of students in the PEG Program Decision Package.
1.3 Postsecondary Education Grant ( PEG) Program
On September 21, 2006, HB 2873 titled " Higher Education; Budget Reconciliation"
became law. Within that bill the Postsecondary Education Grant ( PEG) Program was
established. The Arizona Commission for Postsecondary was named the administrator
of the PEG program. The PEG program allows for $ 4.8 M in grant monies to establish a
grant ( forgivable loan). PEG is awarded to students that are attending private
postsecondary baccalaureate degree granting institutions in Arizona. This loan
forgiveness program awards a student up to $ 2,000 annually for up to four years to be
used for tuition, books and fees.
The ACPE anticipates 5,000- 6000 applicants each year with 3,000 of these applicants
being awarded grants. These awardees will be attending one of the 30 qualifying
colleges or universities within the state of Arizona eligible for the 2006- 2007 academic
year.
It is important to note that the repayment processes and interface with students and or
repayment contractors are challenging aspects of this Program. By statute, if the
student does not graduate within 5 years of the date of the first award, the student must
repay all funds awarded. This requires oversight responsibilities for as long as 20 years
for some awardees. After the initial 5 year period, it is projected that with an estimated
80% graduation rate, 600 students annually would go into a repayment program that
would extend over 10- 15 years. It is estimated that 3,000 student loan records and
repayment plans will need to be managed in the first five years of the repayment
operation. At the fifth year anniversary, an estimated 600 students will go into loan
repayment. The number of repayment plans is estimated to grow to more than 6,000 in
ten years and then level off as students fulfill their obligation.
In the summer and fall of 2006 the Commission held three stakeholder meetings with
the 30 qualifying institutions, three meetings with legislative staff and legislators, two
meetings with OSPB, and countless interviews with other state granting agencies, all
seeking input and direction on the administration of the grant and the criteria outlined in
the statute. It became apparent that the administration of the PEG Program was
challenging in several ways. First, both the nature of the student criteria for eligibility
and the legal requirements related to a student forgivable loan will require extensive
discovery and documentation processes for administration of the PEG Program.
Second, the Commission does not have in place an Information Technology ( IT) system
or the personnel adequate to administer a grant of this size that would rely on manual
processes. And third, in order to meet these challenges additional resources would be
necessary to develop a fully automated, secure, web- based system for grant
administration.
At the request of the Executive Director, two of the PEG Program stakeholder
institutions, DeVry University and Collins College, have generously loaned ACPE their
own IT executives to help the Commission develop a technology plan. After an intense
discovery process and months of consultation with the loaned executives, a three-phased
technology plan for implementation of the PEG Program is recommended by
the ACPE. Phase one ( FY2007) would rely upon a prototype database system written
in ACCESS supplemented by a secure, web- based student application and promissory
note on- line; this initial disbursement of grants to students will need to be augmented
with manual processes. In phase two a secured web- based system with a fully
automated functionality will be purchased, modified, and refined over the next two years
of the Program ( FY2008 and 2009). This system will build upon the downloaded
database systems of the 2007 student/ institutionaI records. This system would be fully
integrated with the other existing state student financial assistance programs - LEAP
and PFAP. This integration would provide a single application form and uniform
technology accesses and processes for students and higher education institutions.
Phase three would be planned and implemented in the FY 2010 and FY 201 1 in order
to meet the requirements of a loan repayment program.
The phase one ACCESS database system for each of the 30 institutions is currently
being written and overseen by the loaned IT Executives. At the same time, the
Commission is working with purchasing officers from the State Procurement Office to
secure the services of a firm experienced in developing on- line student applications and
promissory notes that can be modified to meet the needs of the State of Arizona. If this
can be accomplished by the February 1 target date, it can also interface with the
ACCESS database and PEG funds can be distributed to students by late February.
The Commission is making every effort to ensure the full $ 4.8 million will be available
and processes in place to make the PEG Program funds available to students for the
FY 06- 07 academic year. A challenge to meeting this goal has been that administrative
funds were not available to the Commission until November of 2006. Since that time,
the Commission has hired a Student Financial Aid Director and an Assistant, developed
student eligibility criteria for the institutions to certify, is working with the procurement
and PIJ processes necessary to get the application and promissory notes online to
allow distribution of funds. A web- based application and promissory note for the
forgivable loan is deemed necessary to provide access to rural, disabled, and on- line
students. At the time of this report, challenges are yet to be met to make this grant
accessible to the students attending the 30 baccalaureate degree granting institutions in
late February of 2007.
As soon as the timeline is confirmed, the Commission is developing a marketing plan
focusing on the students at eligible institutions for this year ( year one). In future years
the Commission will target the high schools and seniors as they plan their
postsecondary goals.
I. 4 Student Financial Assistance Repayment Proqrams
The Commission administers repayment programs for the Private Postsecondary
Education Student Financial Assistance Program ( PFAP), the Paul Douglas Teacher
Scholarship ( PDTS), and the Arizona Teacher Incentive Program ( ATIP). The ACPE
provides all former financial assistance program participants three opportunities to
comply with the repayment demands placed on them by federal or state guidelines. The
Office of the Attorney General is used for collections only when normal investigative
means to locate the former student are unsuccessful or when grantees have been
contacted three times and refuse to enter the repayment program. A brief summary of
each of the repayment programs administered by the ACPE follows.
There have been 1,227 students awarded the PFAP grant. Of those, 858 recipients
have fulfilled their obligation by receiving their bachelor's degree in the three year
allotted time frame. The remaining award recipients are either presently enrolled in the
repayment program or will be placed in the repayment program once located and their
status is determined.
Since the program's inception, there have been 90 former recipients requiring
repayment. Of those, 18 are actively making payments to the Commission. Eleven
grant recipients have been referred to the Office of the Attorney General and are
pending payment. Forty- seven grantees have completed their obligation by either
making payment directly to the Commission or through the Office of the Attorney
General; 12 have been deemed uncollectible by the Attorney General's office, 1 loan
has been forgiven due to medical reasons, and 1 has been abated because the former
student is deceased.
Of the 245 former PDTS recipients, 9 are currently in repayment, 2 are in deferment,
and 2 are making payments through the Office of the Attorney General. All others have
completed their obligation by fulfilling the teaching requirements of the program, or by
repaying their loan in full. All 101 former ATIP recipients completed their obligation by
fulfilling the teaching requirements of the program, or by repaying their loan in full with
the Commission or Attorney General's office.
All funds recouped for the PDTS program are forwarded to the U. S. Department of
Education in June of each year, and any monies received for the ATlP program are
deposited into the State general fund. PFAP repayment funds received are put back
into the PFAP grant fund. Any funds recouped by the Office of the Attorney General are
returned to the Commission and disbursed as outlined above, less their 35% recovery
fee.
1.5 Arizona Oversight of State Student Loan Guarantor
Through the U. S. Department of Education financial institutions are named and then
approved by the Governor to be designated as the state student loan guarantor. In
2004, USA Funds was re- designated to serve as the Arizona State Student Loan
Guarantor. The Arizona Commission for Postsecondary Education is named through
statute to provide oversight of the designated entity.
As the Arizona State Guarantor for student loans, USA Funds guaranteed $ 895 million
in new educational loans to more than 101,000 Arizona borrowers - including Federal
Stafford loans for 93,455 students and Federal PLUS loans for 7,623 parents and
students for the 2006- 2007 academic year. Due to the increasing costs of
postsecondary education, loans are becoming a significant source of funding to which
students and families turn for higher education costs.
USA Funds has chosen to be a partner with the State of Arizona in increasing the
college going rates. USA Funds serves as one of several sponsors for College Goal
Sunday, supported the Developing Arizona's Human Capital Conference, and funded
the Investing in Arizona's Future research study.
In addition, USA Funds awarded $ 501,000 in scholarships to 334 Arizona residents
under USA Funds Arizona Silver Anniversary ScholarshipsTM for the 2006- 2007
academic year. An additional $ 244,500 in renewable scholarships were awarded to 167
Arizona students who previously had received scholarship awards through USA Funds'
national scholarship program. These scholarships assist students in financial need -
particularly those who are either members of ethnic- minority groups or are physically
disabled - as they finance their higher education.
1.6 Arizona Family College Savings Program ( AFCSP)
The Arizona Commission for Postsecondary Education administers the Arizona Family
College Savings Program ( AFCSP). The AFCSP was established as Arizona's qualified
tuition program under section 529 of the Internal Revenue Code ( also referred to as a
QTP or Qualified Tuition Program) in 1997 and began accepting accounts in 1999. In
2004, State legislation established the Family College Savings Program Trust Fund as a
public instrumentality of the State of Arizona, of which the Arizona Commission for
Postsecondary Education acts as its sole trustee. At all times the AFCSP accounts are
held in trust for its participants and beneficiaries.
A state- sponsored 529 plan is a tax- advantaged program intended to help individuals
and families pay the cost of higher education. The AFCSP is designed to encourage
savings for qualified higher education expenses by enabling account owners to invest
free of federal and Arizona State income taxes. Qualified expenses include tuition,
supplies, equipment, books, room, and board at any accredited public or private
college/ university, community college, proprietary or vocational/ career/ technical
postsecondary educational institution in the United States as well as eligible foreign
institutions.
In August 2006, President Bush signed the Pension Protection Act into law. Among its
many provisions, this sweeping legislation made permanent the 529 plan provisions of
the 2001 tax act which were scheduled to expire in 2010. These provisions allow
federal income tax- free withdrawals from 529 College Savings Plans for qualified higher
education expenses.
The AFCSP was established as a multiple provider program, ensuring a variety of
investment choices in order to appeal to the diverse investment needs of families saving
for college. An Oversight Committee, as defined by state statutes, is comprised of 10
members with financial, tax and legal expertise, and is responsible for review of the
program rules, statute language revisions, and selection and oversight of financial
providers for the AFCSP. The Oversight Committee makes recommendations to the
Arizona Commission for Postsecondary Education, the AFCSP Trustee, for final
approval of plan oversight decisions. A current roster of the AFCSP Oversight
Committee follows.
Oversight Committee
Arizona Family College Savings Program
Dale Walters, Chair
Public Member
CEO, Keats Connelly
Hope Leibsohn
Public Member
Attorney at Law, Lewis & Roca, LLP
Roger Curley Laura Palmer Noone
Attorney with State Bar Cert. in Estates & Trusts State Board for Private Postsecondary
Attorney at Law, Curley & Allison LLP Education
President Emeritus, University of Phoenix
Gary R. Dokes Mark P. Stein
Public Member Certified Financial Planner
Chief Investment Officer, AZ Retirement System CFP, AeGlS Financial Group
Dr. Roy Flores E. Blaine Vance
Individual Employed by a CC or Univ. System with State Treasurer or Designee
Asset Management & Financial Related Experience Chief Deputy Treasurer
Chancellor, Pima Community College District
John Garcia
Certified Public Accountant
CPA, Henkel of America, Inc.
James Van Houten
Individual with investment, asset
management & financial related expertise
Owner, Stonegate Financial Group, LLC
Two financial institutions were selected as depositories and managers of the AFCSP in
1999. By 2003, a total of four financial institutions had been approved by the ACPE as
AFCSP's providers - College Savings Bank, Securities Management and Research
( SM& R), Pacific Life and Waddell & Reed. Fidelity lnvestments joined the Program as
the fifth AFCSP provider in June 2005.
In the beginning of 2006, the AFCSP Oversight Committee initiated a rigorous provider
review process which culminated in the recommendation to the ACPE of the non-renewal
of two provider management contracts; the renewal of College Savings Bank's
contract for one year; and the pursuit of an individual contract with Waddell & Reed
which at the time was being subcontracted through SM& R. Note that Fidelity's contract
did not come up for renewal in 2006.
The two non- renewed providers, Pacific Life and Securities Management & Research,
entered into an agreement with the ACPE to continue servicing the existing AFCSP
accounts for a one year period to allow for a smooth transition of accounts to another
AFCSP provider or 529 plan.
The restructuring of the AFCSP was completed in November, 2006. As a result, the
AFCSP currently offers an array of investment choices to meet the participants' specific
investment styles and risk tolerance through two distinct direct- sold providers and an
adviser- sold provider. The investment options are listed below.
College Savings Bank offers direct- sold Certificates of Deposit indexed to
college costs
Fidelity lnvestments offers direct- sold age- based asset allocation mutual fund
portfolios, static mutual fund portfolios, as well as individual portfolios
Waddell & Reed Financial Services offers advisor- sold age- based asset
allocation mutual fund portfolio options. Individual portfolios will be offered
beginning in 2007
Since its inception 1999, the AFCSP has experienced significant growth, driven by both
Arizona residents as well as non- residents who recognize the importance of preparing
financially for the rapidly increasing cost of tuition and the quality of the plan. Assets
under management in the AFCSP reached $ 365 million, a growth rate of 15% from the
end of the 2005 fiscal year, and over fifty two thousand accounts have been opened
since the Program's inception. The Arizona Family College Savings Program's Annual
Report is available to the public on the ACPE's website at www. azhighered. gov.
The costs to oversee the AFCSP are collected from an initial fee of $ 13.00 charged
one- time to each new account opened.
The restructuring of the AFCSP along with other significant plan enhancements and
initiatives described below, were designed to strengthen the program for the benefit of
investors. The recent changes and initiatives, guided by the ACPE strategic plan for the
Arizona Family College Savings Program, are focused on achieving three goals. These
goals are ( 1) to ensure AFCSP providers offer quality and competitive savings options
to families, ( 2) to encourage existing providers to reduce fees charged to investors, ( 3)
to update investors about investment options and program enhancements in order to
make informed decisions based on their investment goals.
First, in November 2006, Fidelity lnvestments announced several enhancements to the
Fidelity Arizona College Savings Plan which included greater investment choice.
College savings investors participating in the AFCSP through Fidelity lnvestments now
have access to the new index Age- Based, Static and Individual Fund Portfolios, as well
as an array of popular Actively Managed Age- Based and Static Portfolios. The plan's
new index portfolios are among the lowest cost in the 529 industry, capped at 50 basis
points.
In addition, Waddell & Reed publicly announced the launch of a new class of shares
giving financial advisers access to a range of choices more adaptable to individual
needs as they work with their clients. The new E Share class will be available on 22
mutual funds within the Ivy Funds family in the first quarter of 2007, further
complementing the current age- based portfolios within the Waddell & Reed plan.
Second, fees charged to investors have been reduced and in some cases eliminated. In
order to position the AFCSP as one of the more cost- effective advisor- sold 529 plans in
the country, Waddell & Reed implemented fee reductions in the beginning of 2006
across all its age- based portfolios and converted all mutual funds Class B and Class C
shares to the lower- cost Class A shares at no cost to the investor. In addition to
Waddell & Reed's fee structure changes, Fidelity lnvestments eliminated the low-balance
annual fee applicable only to non- Arizona residents and reduced the initial
investment minimums as well as the monthly contribution amount minimums for those
accounts with automatic investment plans.
Third, In November 2006, AFCSP providers began implementing an aggressive
marketing plan to promote the revamped AFCSP and to encourage more Arizona
families to save for future higher education expenses. The promotional campaign,
which includes direct mailings to the target audience, press releases at a national and
local level, and special events, will extend to the 2007 calendar year. In addition, a
marketing and public relations fund financed by the providers was used by the ACPE to
increase local awareness of the features and benefits of the AFCSP as well as the
importance of saving for college. Tieken: Moret Design and Marketing was
commissioned by the ACPE to provide for additional AFCSP media coverage and to
develop and distribute financial literacy pieces through local schools, the Arizona PTA,
state agencies and the ACPE's website.
Finally, the revision of article 5 of the Arizona Administration Code - Arizona Family
College Savings Program, is in progress to reflect the changes made to the AFCSP this
year.
The AFSCP Oversight Committee and the ACPE continue to identify improvements and
mount initiatives that will lead to the AFSCP mission of assisting Arizona families to
financially prepare for postsecondary education by providing quality college savings
choices.
Goal 2: Implement strategies to help students and families plan, enroll, and
succeed in postsecondary education
The Arizona Commission for Postsecondary Education endeavors to expand access
and success in postsecondary education for Arizona families. Providing information for
college decision- making, initiating programs to assist students and families access
student financial assistance, and supporting efforts to increase college- going rates are
strategies used to assist Arizona families, adults, and K- 12 students. Almost every
parent holds the dream of college attendance for their child, and many adults seek
higher education for personaI/ professionaI development.
The ACPE enters into programs and partnerships to assist parents and students as they
plan for their dream. It is realistic planning with appropriate and accurate information
that will assure the child is academically ready, the family financially prepared, and that
student and family expectations are in line with the realities of postsecondary education.
Adult and returning students are also an important part of ACPE program planning.
2.1 Arizona College and Career Guide ( ACCG)
The Arizona College & Career Guide ( ACCG) lists all Arizona public and private
postsecondary institutions including proprietary, vocational, and career schools. Each
school listing includes course offerings, length of study, costs to attend, and financial aid
programs available. This document is the single source of this information for the state
and is widely used by K- 12 counselors, high school students, higher education
institutions, and the information seeking public. The ACPE has compiled and
disseminated the publication since 1975.
This year 15,000 copies of the ACCG were printed and 13,250 were distributed free of
charge to public schools, libraries, state agencies, prisons, and higher education
institutions. In addition, the ACCG is available online at the ACPE web site at
http:// accg. azhighered. gov. Publication and distribution costs of the ACCG
($ 18,360.59) are financed through paid advertising in the publication and per individual
book fees ($ 5 each or $ 3 each for ten copies or more).
The publication is a favorite of high school and career counselors. In addition, GEAR-UP
requested that 2,400 copies of the ACCG 2006- 2007 publication be distributed this
year to high school seniors. Furthermore, the ACPE has used the College and Career
Guide as a promotional tool to increase attendance at College Goal Sunday where
families get help completing the Free Application for Federal Student Aid ( FAFSA) form,
to encourage parents learn how to financially prepare for college expenses by
downloading the College Savings Planner, and to provide information to counselors
about the ACPE's free college- going literacy materials available for K- 12 students.
2.2 Arizona Commission for Postsecondary Education ( ACPE) Website
In 2006, the ACPE website was continually updated and improved to provide Arizona
families with ever- changing information on student financial assistance, postsecondary
education choices, and career exploration. As mentioned earlier in this report, the
ACPE was assigned as administrator of the Postsecondary Education Grant ( PEG)
program and the website was revised to reflect that and give educators and students
eligibility requirements for the grant. The website is laden with important information
about student financial aid. A measure of the success of our web site is the increase in
visits from 96,820 over a 12- month period in 2005 to 104,332 over the same time frame
in 2006. The ACPE web site can be viewed at www. azhighered. gov and is the portal to
the ACCG Guide, Arizona 529 Plan, AMEPAC reports and College Goal Sunday
2.3 College Goal Sunday ( CGS)
The Arizona Commission for Postsecondary Education hosts an important statewide
annual event titled College Goal Sunday ( CGS). College Goal Sunday has been
organized for the past ten years by the ACPE. The 1l tahnnu al event is being planned
and will be held on February 11, 2007, at 30 sites throughout the state.
The goal is to provide assistance to high school seniors ( or adults entering
postsecondary education) and their families in completing the Free Application for
Federal Student Aid ( FAFSA) form. The overall purpose is to help students and
families, especially first generation college applicants, understand the value of applying
for student financial aid, take the important first step of completing the FAFSA, and
ultimately access postsecondary education.
The event is offered in partnership with the Arizona Association of Student Financial Aid
Administrators ( AASFAA). In 2006, College Goal Sunday was held in 29 Arizona
communities on February 12'~. On this Sunday afternoon, more than 342 volunteer
financial aid professionals from Arizona's colleges/ universities, as well as high school
counselors, mobilized to assist high school seniors and their families in completing the
FAFSA form and learn about the financial aid process. In 2006, three thousand two
hundred and eighty- seven students and parents attended. Since 1997, almost 27,000
students and their families have been helped by this event.
This event successfully achieves its purpose. The 2006 College Goal Sunday survey
reported that for 31 % of the students attending neither parent attended any college; an
additional 21% indicated a parent had attended some college but neither parent had
attained a 2- or 4- year degree. Therefore, the total percentage of first- generation
students attending in 2006 was 52%.
Because a high percentage of low- income and minority families are first- generation
college- goers, the ACPE was pleased to find that 52% of the participants reported
having an annual income of $ 40,000 or less. Furthermore, the 2006 event survey also
indicated a 30% Hispanic, 7% Native American, and 6% African- American
participation rate.
15
Another plus in 2006 was that 58% of the CGS sites offered FAFSA on the web.
Computer labs were opened to help families complete their FAFSA on- line. In 2007,
90% of the College Goal Sunday sites will offer FAFSA on the web. Additionally, most
sites offer Spanish or Navajo interpreters.
As the host of this event, the ACPE seeks grants to fund the activities and provides the
leadership to implement the event. Grants were secured for the 2006 and 2007 events
from Waddell & Reed, USA Funds, and Lumina Foundation. Additionally, College
Savings Bank is a sponsor of television advertisements for the 2007 event.
A new strategy being employed for College Goal Sunday in 2007 is the addition of
" College Goal Sunday, Saturday Edition.'' One of our sites, Estrella Mountain
Community College, will host the event on Saturday, February loth from 2- 4 p. m. In this
way, the ACPE hopes to serve families in the Greater Phoenix Metropolitan area that
cannot attend the event on Sunday.
2.4 " Count Down to College" Sunday Insert
In 2006, a 16- page Sunday insert, entitled " Countdown to College" was published in the
Arizona Republic and Tucson Daily Star and distributed to approximately 800,000
households the Sunday before College Goal Sunday. USA Funds underwrote the basic
publication cost of this insert and additional pages were paid for with purchased
advertising by higher education stakeholders through the newspaper sales staff and
letters of introduction from the ACPE.
This postsecondary literacy document for families included articles with information
about what to do " after the FAFSA ( Free Application for Federal Student Aid form)" is
completed, college essay writing tips, a college planning calendar, as well as promotion
of the College Goal Sunday statewide event.
The Countdown to College insert is an example of a collaborative effort between the
ACPE, the state guarantor of student loans, and postsecondary institutions that support
the effort through advertisements. This publication is scheduled again in 2007 and will
be distributed as a special insert in Phoenix, Tucson, and outlying areas to nearly
800,000 households on February 4, 2007. The success of this publication is measured
at each College Goal Sunday event by observing the large number of participants who
attend with the document in hand.
2.5 Think College Publications
The Arizona Commission for Postsecondary Education is dedicated to strengthening the
commitment of children and youth to obtain a higher education. Toward this end, a
general education awareness and information campaign for students and their parents
titled Think College was developed to emphasize the importance of staying in school,
raising expectations, and creating a positive attitude among students and their parents
about postsecondary education possibilities.
In the past, Think College was comprised of three publications and were sponsored by
two financial partners as follows: ( 1) USA Funds sponsors Measuring Your Child's
Progress: Preparing Your Child for Higher Education for middle school through high
school parents and ( 2) Ed Funds sponsors Carlton Q. Cat: Cool Cats Stay in School for
third and fourth grade students and The Future 5: The Power of Your Mind for seventh
and eight grade students. Thanks to the generosity of these partners, these
publications were provided to the schools free of charge.
In 2006, a thorough review of these publications, their value to students and families
and the time and expense of distribution was evaluated. The printing and distribution of
Carlton Q Cat and The Future Five have been discontinued. Conversely, the
Commission and USA funds are currently revising Measuring Your Child's Progress to
continue to appeal to the ever- changing teen community and to update the material
within to include more web- sites on financial aid and college- going requirements.
In keeping with the Commission's goal to help students and families plan, enroll, and
succeed in postsecondary education, the Commission staff has undertaken a new
project. Currently, staff is modifying Rapid Guide's Financial Aid publication to include
Arizona specific information. This Guide includes step- by- step instructions for applying
for financial aid ( both public and private), scholarships, grants, loans and saving for
college. The Commission plans to distribute this guide to High School juniors
throughout the state in spring of 2007.
Two other opportunities to increase access to college going information have been
discovered and are being explored. First, the Commission partnered with Colleqe
Times to create a publication by high school students for high school students. The
publication was distributed to approximately 180,000 students at 200 high schools
across Maricopa County in late August and early September. It included articles on
College Goal Sunday, 10 easy steps to get money for college, obtaining financial aid for
college, how to choose a college, the seven easy steps for applying to college, college
loans- an investment in the future, what to take to college, where to live in college, and
getting a jump start in the ninth grade.
And second, the ACPE provided a fourth year of editorial direction for the Phoenix
Magazine August edition to include a higher education section. This opportunity
provides information to families across the state to learn more about the higher
education options within Arizona. Phoenix Magazine has 385,500 readers.
2.6 The STAY in School Initiative
The public interest engendered through AMEPAC's papers related to high school
dropouts in Arizona led the Arizona Commission for Postsecondary Education to
develop the STAY in School Initiative in 2002. A pilot project was initiated in 2004 with
Sunnyside Unified School District. The goal of this pilot project was to develop a
successful model from which others might learn and to equip community leaders to
address the dropout issue in ways that are consistent with the values and realities of
their school district, town, or region. This initiative has been owned by the community,
has been connected to other resources, and it continues to thrive and serve as a
laboratory for learning for the state.
In late 2004, the ACPE connected the Learning Community Coalition with the
Leadership for Learning Academy effort already underway at the Sunnyside School
District. Member organizations of the national Learning Communities Coalition include
Communities in Schools, USA Funds, Scholarship America, Sallie Mae, U. S. Dream
Academy, America's Promise: The Alliance for Youth, Merimar Productions, National
Association for College Admission Counseling ( NACAC), Paws Incorporated, and the
National Mentoring Partnership
In 2005, Sunnyside Unified School District was selected as one of six pilot Learning
Communities in the nation along with Benning HeightsIBenning Terrace neighborhood
of Washington, D. C.; the George Washington Community School area of Indianapolis,
Indiana; the Washington Shores area of Orlando, Florida; Okolona, Mississippi; and the
Wind River Indian Reservation in Wyoming. Sunnyside School District received a total
of $ 603,900 to be used to support the pilot project over a three- year time frame
beginning in 2006.
What was the Stay in School pilot project is now the Learning Communities Coalition
and it is now funded by private sector sources The STAY in School Leadership for
Learning Academy served as the foundation for the community development
infrastructure that brought the Learning Communities Coalition grant to SUH D. In
September of 2005, they renamed their leadership group the Learning Community
Leaders. A community marketing campaign was developed and a kick- off event was
held on November 5, 2005 to announce the new Coalition. The Coalition's mission is to
bring about positive change in the community culture to support learning, and to
increase the number of students who continue their education and graduate from
college. Additional members of business and community- based organizations continue
to join the group and work toward their common goals.
In addition to its continued interest in the Sunnyside USD pilot project and its
opportunity for other communities learning, the ACPE will continue to participate in
collaborations to increase graduation rates in Arizona including the Arizona Department
of Education and the Center for the Future of Arizona as they provide leadership in
dropout prevention.
2.7 Pathwavs to Education AwardslDeveloping Arizona's Human Capital
Conference
The Developing Arizona's Human Capital: The Challenge Facing Postsecondary
Education Conference was a two- day event held on April 20 - 21, 2006. USA Funds
helped the Commission sponsor the event. Other sponsors included University of
Phoenix, Maricopa Community College District, Southwest Student Services
Corporation, Helios Education Foundation, Southwest Gas, Arizona State University,
WET Channel Eight, Greater Phoenix Leadership, The Business Journal and SRP.
The purpose of this conference was to draw together policy makers to examine data
and consider policy implications of capacity, access, student financial assistance,
outreach, and preparation for postsecondary education as it relates to developing
Arizona's human capital.
David Brooks, New York Times columnist and political analyst for The Newshour, was
the keynote speaker for the conference. His speech was based on his recent articles
about Developing Human Capital and was centered around Arizona statistics and
educational issues. Reactors to the keynote address included Laura Palmer Noone,
President, University of Phoenix; Robert Robb, Columnist, The Arizona Republic; and
Gary Trujillo, President and CEO of Southwest Harvard Group. Additionally, WET
Horizon's interview with David Brooks about developing human capital can be viewed
on the Commission's website: www. azhiqhered. gov.
In addition to David Brooks' keynote on the first day of the conference, there were six
breakout session: 1) Completing the Picture: Rural and Tribal Colleges, 2) Enlarging
the Picture: Taking College Access Programs to Scale, 3) Developing Human Capital
through Business/ Education Partnerships, 4) Focusing on the Transitions: High School
through Postsecondary Education, 5) Processing the Cost of higher Education: The
Burden on Families, and 6) Completing the Picture: Minority Student Participation. At
the end of the first day of the Conference AMEPAC rolled out its most recent policy
analysis report: " The Road to Higher Education: Closing the Participation Gaps for
Arizona Minority Students."
The second day of the conference started with a legislative breakfast where the chairs
of the education committees and the Senate President Pro Tempore presented their
views of higher education in Arizona. Also at this breakfast the legislators presented the
Pathways to Postsecondary Education awards. These awards are designed to
recognize efforts by business, community, postsecondary education, and K- 12 schools
to support students through the K- 12 system and into postsecondary education. After
the awards were presented, we heard comments from the authors of " The Value of
Higher Education to the Individual and Society," and participated in a business leaders
panel to focus higher education to meet workforce needs. Dr. Lattie Coor, CEO of the
Center for the Future of Arizona and ASU President Emeritus, presented his views on
the challenges facing higher education over the next two decades. The conference was
wrapped up by Jim Zaharis, VP of Education for Greater Phoenix Leadership, with his
comments on the next steps for the P- 20 Council
The conference was a great success with approximately 150 individuals participating.
2.8 Transition into Postsecondary Education: The Colleqe Summit Pilot Project
A request from the Executive Director of the ACPE to the state loan guarantor, USA
Fund, to assist in raising the Arizona college- going rate resulted in an investigation of
existing college transition and support programs. College Summit stood alone in
empirical evidence of success in transitioning the middle- fifty percent of high school
seniors into college attendees. Publications from College Summit indicated that over
the past ten years, College Summit summer workshop participants have enrolled in
college at a rate of 79%. Furthermore, students have stayed in college at a rate of 80%.
The organization has received the National Association for College Admission
Counseling's National Award for Expanding College Opportunity for Under- Represented
Youth.
The focus of College Summit is changing the college- going culture of low- income
communities. The program is designed to strengthen high school advising systems,
college admissions systems, and the college- going culture. USA Funds sponsored an
Arizona College Summit pilot program in 2005- 2006. Five high schools and 150 youth
were involved in the pilot project including seniors from Trevor Browne, Metro Tech,
Glendale, Carl Hayden, and Sun Valley High Schools.
Due to a lack of funding, the pilot project was drawn to a close in the spring of 2006.
Some results were identified during this brief pilot program. College Summit's Vice
President of Growth Strategy and Development informed the Commission that 73% of
the 99 students participating in Arizona's College Summit sent at least one application
to college by April 26, 2006. College Summit will be collecting and analyzing actual
college enrollment results for these students by the end of the fall 2006 semester. They
will share the final enrollment results from the program, collected by the National
Student Clearinghouse, and will evaluate the potential for College Summit to scale in
Arizona at that time.
Goal 3: Problem solving across all sectors of postsecondary Education
The Arizona Commission for Postsecondary Education provides a unique statewide
forum for senior level representatives from universities, community colleges,
independent colleges, and private training and career colleges to identify mutual
opportunities and problems in postsecondary education. In addition, two
superintendents of large districts and a CEO of a charter school provide insight about
transition into, preparation for, and awareness of postsecondary education opportunities
from the K- 12 perspective.
Issues arose from discussion among Commissioners that needed further investigation
and policy analysis. In addition, Commissioners have established a standing
Postsecondary Needs Committee that is called upon to identify opportunities for
collaborative action. Issues that have been identified as important through these
processes include access to and success in postsecondary education of minority
populations and low- income families, low high school completion rate, student
advancement through the segments of Arizona's higher education system toward a
baccalaureate degree, and reduction or elimination of the financial barrier experienced
by students and their families to postsecondary education.
Two strategies have been identified to meet Goal 3. The first is to raise awareness and
develop a knowledge base for solutions through policy analysis and commissioned
research studies. And the second strategy is to establish collaborative action groups or
task forces, informed by research, to plan strategies to seize opportunities or solve
problems identified by the Commission.
3.1 Arizona Minority Education Policy Analysis Center ( AMEPAC)
The mission of the Arizona Minority Education Policy Analysis Center ( AMEPAC) is to
stimulate through studies, statewide discussion, and debate constructive improvement
of Arizona minority students' early awareness, access and achievement throughout all
sectors of education. AMEPAC is funded through donations from postsecondary
institutions committed to its mission. Since 1996, AMEPAC has addressed numerous
issues effecting minority access to and achievement in higher education. Results of this
policy analysis are both published research papers and the initiation of forums or
roundtable discussions on pressing issues related to the mission.
AMEPAC's most recent major research effort was a commissioned study from the
University of Arizona's Latinalo Policy Research Initiative on access, affordability,
achievement and preparation of minority students for postsecondary education. " The
Road to Higher Education: Closing the participation Gaps for Arizona Minority Students"
was published in 2006, along with the policy recommendations. The publication and the
policy recommendations were rolled out at the Developing Arizona's Human Capital
Conference on April 2oth, 2006. The Commission distributed 950 copies of the full
report during the summer to educators, business leaders and policy makers throughout
the state. Additionally, the policy recommendations were e- mailed to nearly 1,000
people this summer. Several AMEPAC members and the Commission's Executive
Director met with The Arizona Republic editorial board and several articles were written
that generated interest in the report's findings.
AMEPAC members are currently undertaking a major strategic planning effort to
enhance the impact of the Center and its 16 volunteer members over the next several
years. In the new strategic plan AMEPAC will shift its research focus to the broad
societal consequences of Arizona's low college- going rate. What is the demand for
education from the Business, Government and general employment sectors? Can the
education system fulfill the needs of the labor market? What happens to the society as
a whole ( macro) and individual people ( micro) if the education system fails to meet the
demands of the labor market? AMEPAC is working to find partners to help with this
proposed research and policy analysis.
In addition, the Minority Student Report, a very popular publication, will be published for
the third time in the springlsummer of 2007. This publication establishes benchmarks
against which Arizona's progress in educating minority students can be measured.
3.2 Postsecondary ArticulationlTransfer Task Force ( PATTF)
The Postsecondary Articulationrrransfer Task Force ( PATTF) is charged with identifying
potential areas for articulation and encouraging articulation possibilities among
2 1
postsecondary institutions. The goal of the Task Force is to ensure student access to
the baccalaureate.
The Task Force members have set five long- term goals for the group including ( 1)
educate others regarding articulation, ( 2) examine trends in transfer and articulation, ( 3)
recommend guidelines/ principles for establishing articulation agreements, ( 4)
recommend the addition of accountability/ outcome measures for transfer students, and
( 5) establish a " clearinghouse" for dissemination of information. The Task Force
continued refining its mission and goals in 2006.
On October 27, 2005, the PATTF in conjunction with the Academic Program Articulation
Steering Committee ( APASC) held the Next Step: Articulating Private & Public
Postsecondary Education in Arizona Conference aimed at creating an open dialogue of
transfer issues and information among the public and private postsecondary institutions
in Arizona.
More than 75 individuals attended the Conference including 27 representatives from the
community colleges; 7 representatives from the public universities, and 26
representatives from private colleges and universities as well as technical schools. Also
attending were two staff members from the Arizona House of Representatives, one from
the Governor's office, and three ACPE Commissioners.
The Conference outcomes were presented at the ACPE Developing Arizona's Human
Capital: The Challenge Facing Postsecondary Education Conference.
The connections made at the conference and within the Task Force continue to bring
results in improved articulation. The Task Force continues to address these issues
under the guidance of the ACPE
3.3 Student Financial Aid Task Force
In 2003, members of the ACPE convened a Student Financial Aid Task Force Task
Force to work to improve financial access for students entering postsecondary
education. Since that time a collaborative group of thirty- five business, community,
philanthropic and education leaders have focused on the mission of raising the
awareness of and support for solutions to financial barriers to postsecondary education
access and attainment for low- income students.
In March of 2005, a research study commissioned by the ACPE was released at a
forum with over 100 policy makers, state administrators, business, philanthropy, and
legislators in attendance. The study, titled Investing in Arizona's Future: College
Access, Affordabilitv, and the Impact of Investment in Need- Based Financial Aid was
sponsored by USA Funds and authored by Dr. Jamie P. Merisotis of the Institute for
Higher Education Policy and Dr. Jose Luis Santos of the University of Arizona Latinalo
Research Initiative.
This event heightened awareness of the lack of financial aid available to students in the
state. The first goal of the Task Force was to quantify and inform policy makers
regarding the issue of student financial assistance in Arizona. This was at least partially
accomplished through the publication of Investing in Arizona's Future.
The next goal was to expand the number of stakeholders aware of and committed to
providing financial access to postsecondary education for Arizonans. The Student
Financial Aid Task Force has been building alliances and has secured the in- kind
services of a marketing firm to assist in the development of this message through a
Power Point presentation. The leadership and awareness of the financial barriers to
higher education provided by the Task Force have been significant. It has been stated
by a number of educators that the work of this group was instrumental in decisions to
increase the Arizona student financial aid by $ 10.2 M in the 2006 legislative session.
This work continues to proceed and is being informed each day by legislative and
political activity in the state.
Conclusion
Four strategies have been employed during the first two years of the ACPE's five- year
plan to meet the goals of ( 1) increasing available student financial resources, ( 2)
implementing strategies to help students and families, and ( 3) providing a forum for all
sectors of postsecondary education to dialogue, partner, and problem solve issues of
mutual interest for the benefit of Arizonans.
First, the ACPE has committed to efficient and effective administration of the core
financial assistance programs assigned to the Commission by statute. Significant
improvements have been implemented in both the Leveraging Educational Assistance
Partnership ( LEAP) and in all aspects of administration of the Arizona Family College
Savings Program ( AFCSP). The Private Postsecondary Education Student Financial
Program ( PFAP) administration is under review and a plan is in place to improve the
measures of administrative efficiency and effectiveness. In addition, the planning and
administration of the PEG Program is well underway. Furthermore, all financial
assistance programs administrative procedures will continue to be evaluated and
reviewed annually to ensure that every dollar is available to students and their families
for postsecondary attendance when it is needed. The PEG Program and its
administration offers opportunities for a common state grant application to benefit
students' ease of accessing funds.
Second, the staff continues to develop strategies to leverage the limited financial and
human resources available to the ACPE in order to help Arizonans access
postsecondary education. Through development and nurturance of partnerships, access
to grant funds and donations, and initiation and participation in collaborative activities
the ACPE plans to continue to offer programs such as College Goal Sunday, and the
Pathways to Higher Education Awards and the Developing Human Capital Conference.
Likewise, the ACPE will endeavor to provide college awareness and student financial
assistance information to Arizonans through Think College publications, the Arizona
College and Career Guide, Countdown to College Sunday insert, informational college-
going publications, and the ACPE website. Each of these programs and college
awareness publications are offered at no expense to the State, but rather are sponsored
through private dollars.
Third, the forum provided by the Arizona Commission for Postsecondary Education
promotes dialogue and identification of common issues among all sectors of higher
education. In 2005- 2006, the Student Financial Aid Task Force, the College Goal
Sunday Task Force, and the Postsecondary Education Articulation Task Force were
very active and productive collaborative groups involving more than 65 individual
stakeholders in planning and supporting ACPE activities. Also, a research paper
commissioned by AMEPAC was published and promoted that contributed to the
knowledge base of student access and success in Arizona higher education. The
ACPE plans to continue to initiate and support collaborative groups comprised of
stakeholders, develop research studies, and convene conferences or roundtable
discussions that can identify postsecondary education opportunities and seek solutions
to problems.
And finally, in an effort to fulfill the ACPE mission, the Executive Director serves and
supports a number of related task forces and initiatives such as the Center for the
Future of Arizona's Graduation Rate and Dropout Initiative, the Governor's P- 20
Council's Access to Higher Education Committee, the Arizona Department of
Education's High School Renewal and Improvement Initiative, Arizona ASFAA's State
and Legislative Affairs Committee, the City of Phoenix College Depot, College
Scholarship Foundation, and the GEAR- UP Program. The ACPE works in collaboration
with these groups and many others to improve the opportunities for students to move
within postsecondary education in a seamless manner.
The Arizona Commission for Postsecondary Education has identified a mission of
expanding access and increasing success in postsecondary education for Arizonans.
The Commissioners and staff will continue vigorously to seek avenues for partnerships
and/ or collaboration that contribute to this mission.