Board Members Present: Jeremy Shea, Mary Jo Green, Debra E. McKinney, Steve Van Ess, Linda A. Cross, Marbara Manthei, Andre M. Jacque, Sandra Dercole for Paul Spraggins, and Gerard Randall via phone.

HEAB Staff Present: Jane Hojan-Clark, Jim Buske, Mary Lou Kuzdas, Sandy Thomas, John Whitt, and Marilyn Gilles.

Others Present: Shelly Gardner, WTCSB; David Dies, WAICU; Kristen Hendrickson, UWSA; Andy Richards, UWSA; Tony Blodgett, Office of the Governor; and Carla Smith-Liebich, OSFA-MU.

PUBLIC HEARING
The meeting began with a public hearing on the administrative rules being proposed for the Teacher Education Loan Program and the Teacher of the Visually Impaired Loan Program. Jane gave a brief description of each and referred members to Board Report #02-1 for further information. This public hearing was held in order to take testimony related to the proposed rules. There was no testimony from the public and no written testimony was received. Chairman Jeremy Shea adjourned the hearing.

Chairman Shea called the meeting to order at 9:10. New members to the board were introduced; Andre Jacque, UW-System Student Representative; Barbara Manthei, Wisconsin Technical College System Representative; Debra McKinney, Independent Colleges and Universities Representative.

APPROVAL OF BOARD MINUTES
Motion was made by Sandy Dercole to approve the minutes of the February 16, 2001 Board meeting and was seconded by Steve Van Ess.
Approved.

REPORT OF EXECUTIVE SECRETARY
Thanks were extended to those board members who were able to visit legislators to discuss budget-related issues. These meetings were very helpful in making legislators more aware of the various programs HEAB administers and their importance to the students of Wisconsin. They were also helpful in presenting HEAB's budget needs to meet the financial need that exists among Wisconsin's students.

Agency procedures are running smoothly. HEAB continues to streamline processes. The paper copy of the Notification List that is sent to the schools has been eliminated. It has been replaced with an electronic version. The next step will be to send these lists each week electronically rather than once every other week.

HEAB continues to move ahead with EFT and the electronic MN/WI Reciprocity application. Getting the electronic application online has been somewhat slow going primarily due to lack of resources and time. Also, HEAB has begun to develop an internal policy and procedures manual.

BOARD REPORT #02-1, TEACHER EDUCATION LOAN PROGRAM AND TEACHER OF THE VISUALLY IMPAIRED LOAN PROGRAM
Jane recommended approval of the proposed administrative rules with the understanding that there will be some revisions from Legislative Council related to formatting. Jeremy Shea suggested a separate vote for each program and entertained a motion that the Teacher Education Loan rules be approved. It was so moved by Steve Van Ess and seconded by Debra McKinney and the motion passed unanimously. After discussion, Mary Jo Green moved that the rules for the Teacher of the Visually Impaired Loan program be approved. It was seconded by Linda Cross and passed unanimously.

2001-02 MINNESOTA-WISCONSIN RECIPROCITY PROGRAM APPROVED ADMINISTRATIVE MEMORANDUM OF UNDERSTANDING
Jane discussed the memorandum written with the Minnesota Higher Education Services Office (HESO) regarding MI-WI Reciprocity. Meetings are pending that will include University of Wisconsin, Department of Administration and HESO representatives to begin discussions to determine distance learning or alternative learning approaches and the impact of the language recently passed in the Minnesota budget bill. Essentially there are no changes in this year's memorandum. We will not be moving ahead with any possible changes until 2002-03 academic year. In looking at future liability payments, the factor to consider is the 13.4% tuition increase on the Minnesota side and a 7% or 8% tuition increase on the Wisconsin side. This will impact future liability payments. Enrollment figures for this past academic year are still coming in so the amount of the liability payment for this past academic year is not available. Once we have a sense of what that enrollment figure will be and be able to factor in the tuition increases, we should be able to project what impact that will have on the 2001-02 liability payments. We suspect that the tuition increase may decrease the liability payments that Minnesota pays to Wisconsin. At Chair Shea's request, Jane gave a broad overview of the program for the new members on the board stating that the Reciprocity agreement was re-negotiated in 1997 and has no expiration date. The memorandum is drawn up every year and gives more detail for the day to day running of the program.

STATUS OF 2000-01 AND 2001-02 APPLICANTS AND PROGRAMS
The first page of this status report focuses on HEAB's largest programs that have specific formulas tied to them: Wisconsin Higher Education Grant (WHEG) for the UW System students, the Technical College System students and the Tribal College students; and the Wisconsin Tuition Grant (WTG) for Independent College and University students. Though these are not final figures they give a very good idea of the committed dollars for the 2000-01 academic year. There is a specific process by which HEAB commits more than the funds appropriated for each of the programs knowing that some students will not attend. Jane went over the specifics of each program and the projections for the 2001-02 academic year. The second page included a breakdown of funds spent on each program during the 2000-01 academic year. Steve Van Ess reemphasized his belief that the Board needs to be more aggressive in the setting of formulas. He does see this happening and supports it.

2001-03 BIENNIAL BUDGET UPDATE
Handouts were made available detailing the work in progress on the new budget. It included recommendations made by the Joint Committee on Finance, the state Senate and the state Assembly. At the time of the board meeting, members of both houses of the legislature were going over both versions of the budget and were trying to agree on a compromise budget to be submitted to the governor for signature or veto. Jane discussed the strategy used for prioritizing programs when the initial HEAB budget request was submitted. She also highlighted the financial differences between the Senate and Assembly budgets in regards to HEAB programs and the non-financial proposals.

Gerard Randall joined the discussion via phone.

OTHER ISSUES

HEAB POLICY AND PROCEDURE MANUAL UPDATE
A letter was sent to all participating college and university Presidents/Chancellors and financial aid administrators in the state that included a draft of a participation agreement to be signed by all. Jane indicated that the feedback was clear that there was a question as to why such an agreement needed to be signed when specific statutes were already in place. In lieu of a formalized agreement, a letter was sent which included the Policy and Procedures Manual link and a request that any further questions about procedure be directed to the HEAB office. The only additional issue that caused any great discussion was in regards to the return of funds. HEAB has been in contact with the Wisconsin Association of Student Financial Aid Administrators' (WASFAA) State Issues Committee and other financial aid administrators to come up with language that would be acceptable to the financial aid community at large. The president of WASFAA has sent out a letter to the general membership and has asked for feedback. Ultimately this will be brought back the Board for approval and inclusion in the HEAB Policy and Procedures Manual.

THE TALENT INCENTIVE PROGRAM GRANT AWARDING CRITERIA AND THE HANDICAPPED STUDENT GRANT PROGRAM UPDATE
The administrative code for both the Talent Incentive Program Grant and the Handicapped Student Grant Program are being reviewed and feedback is being collected so that some solid recommendations regarding changes to rules or statutes and obsolete language can be brought back to the Board.

Another issue where HEAB has received some feedback is related to distance or alternative learning processes. There needs to be more time given to evaluating what the impact will be in general on school's education programs. We do not want to lose sight of this issue. At this point HEAB is addressing each program on a case by case basis.

31st ANNUAL NASSGAP SURVEY DATA
Jim Buske went over the highlights of the 86 page NASSGAP survey. Nation-wide total state awarded aid increased by 12.6% in 1999-00. Over $4.15 billion in need-based aid was awarded to over 2.5 million students. Need-based aid to undergraduates increased by 8.5% nationally and over $3.2 billion was awarded last year. Of that money 99% went to undergraduate students. Wisconsin was only one of seven states that implemented a new need-based program in 1999-00. Wisconsin ranks 15th in its grant dollars for resident population which is a dip from 12th place the previous year. Our state spends $9.96 per student and the nationwide average is $11.83 with New York spending the most at almost $33.oo per resident in grant dollars.

FEDERAL PROGRAMS STATUS REPORT
Federal government it going through the appropriations budget process for fiscal year 2002. The Talent Incentive Program is partially funded by the federal government. The President has come out with his version of a budget plan. Larger programs, like the Pell Grant program, are increasing from $8.8 billion to $9.8 billion for fiscal year 2000. SEOG, Workstudy, the Perkins Loan and LEAP funding is basically level. Both houses will make recommendations. This will go to conference committee and then on to the President for signature. Hopefully this will be resolved by the September 30th deadline.

NEW BUSINESS
Reelection of Board officers was held. It was moved that the current officers remain in their positions by Debra McKinney and seconded. Approved.

The next Board meetings were set for October 19, 2001, February 22, 2002 and April 26, 2002.

Chair Shea adjourned the meeting.