Motion was made by Steve Van Ess to approve the minutes as corrected and seconded by Jeremy Shea. Approved.

ELECTION OF BOARD OFFICERS
There are currently three vacant spots that have not been appointed yet. Chair Clumpner recommended delaying election of officers until next meeting.

REPORT OF EXECUTIVE SECRETARY Jane Hojan-Clark reviewed personnel changes. The Office Manager position is still being sought. They hope to have it filled by April. The Clerical Assistant position has been filled, and the person will be starting on March 13. There is a 13.10 session that the Joint Finance Committee will be holding in March to discuss requesting additional funds for the 0.86 SEG position that was in the biennial budget. Looking to convert that from SEG to GPR funding.

The Y2K conversion went very well. We are working on the FAFSA information for 2000-2001. We have been drawing down 2000-2001 information and are hoping to start processing in April. The Minority Teacher Loan Program has had administrative rule changes. Emergency rules are in effect until April 1, 2000 at which time the permanent rule will take force. There is also a new bill that, if passed, will establish a program for students who earned an International Baccalaureate Diploma in high school. These students would receive $250 from the Higher Educational Grant and also $250 from the school that they decided to attend. There are also a couple of bills that extend the FS program and expand EdVest to allow investments to be more aggressive. There is a proposed requirement to not consider EdVest for state aid eligibility. There is a bill that would require students who apply for state aid to also apply for Selective Service similar to the federal rule.

The HEAB Policy and Procedure manual is almost complete. Steve Van Ess commended the staff on the fine job they have done putting together the Policy and Procedure Manual. Chair Clumpner recognized the Board's knowledge of financial aid operations and Jane's background as assets to this policy making board. The purpose is to aid students not the institutions. There are two goals: (1) to remove financial barriers to students and (2) to support educational diversity.

BOARD REPORT #00-07 1998-1999 MINNESOTA-WISCONSIN RECIPROCITY PROGRAM DATA
For 1998-1999 a liability payment was made to WI from MN due to agreement changes. The number of MN students compared to WI students increased by 500 in 1998-99. The WI liability percentage changed. Van Ess questioned whether the GAP charge for WI residents attending UM Twin Cities affected the number of students going to the Twin Cities?" Jane indicated that there seems to be no effect at this time. Jeremy asked if Staff is pursuing agreements with other states? Chair Clumpner said Staff has been reviewing options for future years.

BOARD REPORT #00-08 WHEAL PROGRAM STATUS AND AUDIT REPORT FOR FISCAL YEAR 1999
Reviewed current status. 108 borrowers still in repayment; 7 of the 108 have defaulted. Audit report, if available, will be discussed at the next meeting.

BOARD REPORT #00-09 WISCONSIN STATE STUDENT FINANCIAL AID DATA FOR 1998-99
Jim Buske discussed a series of exhibits for need-based and non-need based aid. The data shows a shift from need-based aid and an increase in non-need based aid. Exhibit F shows the historical shift from grant to loan base to help students. There was a 2.6 % decrease in the total need-based aid. The average expected family contribution rose to 13.3% from the prior year, as did the cost of education (3.6%). Need-based assistance - in independent colleges and universities, the number of recipients increased by 1.4%. Non need-based assistance - all sectors combined and in each individual sector, there has been a substantial increase: 34% in the number of awards and 26% in the total dollars. Staff has been working with each Sector to continue to perfect the data that these reports are based on.

BOARD REPORT #00-10 STATUS OF 1999-00 APPLICANTS AND PROGRAMS
Jane highlighted the current status of the largest programs: WHEG and WTG. WHEG-WTC made no change in formula from 1998-99. WHEG-WTC has committed 152.72% of its appropriation with 20,909 awards. This is 119 fewer awards and 11.43% less committed than at this time last year. WHEG-WTC has experienced an increase in dollars for 1999-00.

WHEG-UW has committed 132.05% of its appropriation with 21,429 awards. This is 992 fewer awards and 1.4% more committed than at this time last year. Even with a change in the formula, WHEG-UW experienced fewer students eligible. EFC was also higher for dependent students.

The WHEG-Tribal program is new, so there are no comparisons for last year.

WTG has committed 110.65% of its appropriation with 10,170 awards. This is 574 more awards and 2.82 less committed than at this time last year. Each year, schools have been getting better with more accurate reporting of WTG. The formula was changed to commit more.

The number of applicants for 1999-00 for State programs is at 170,000 applicants (as of Feb. 25, 2000). The amount of vouchering for all programs has increased.

BOARD REPORT #00-11 2000-01 WISCONSIN HIGHER EDUCATION GRANT AND WISCONSIN TUITION GRANT PROGRAM FORMULAS
Reviewed WHEG formula models for 1999-00 as reference. The Federal Department of Education has increased the need analysis threshold to $13,000 for automatic EFC. The number of 2000-01 UW System applicants will most likely increase slightly - probably by 1000. The UW System allocation will not increase in 2000-01. For the current year, they have recommended implementation of a single formula that subtracts expected family contribution from an equity level of $3000 and applies an award-rationing factor of 50% in order to meet funding restrictions. The maximum would be $1500. A letter from Katherine Lyall, UW President, supports the collapse of the Independent and the Dependent formula into one formula and recommends using an equity level of $3,000 and an award factor of 50% as demonstrated in the 12/19/99 simulation for 2000-01. A motion was made by Steve Van Ess and a second by Jeremy Shea to approve the formula as supported by Katherine Lyall for the UW System. Roll call vote passed unanimously.

The WTCS tuition will most likely increase in 2000-01, but we do not know by how much. There was no change in the formula from 1998-99 to 1999-00. Therefore, simulation 2 comes closer to spending 6% and any carry forward dollars reflecting the same pool of applicants. It also collapses the independent and dependent formulas into one model. A letter of recommendation was received from Edward Chin, WTCS State Director. A motion was made by Paul Spraggins and seconded by Steve Van Ess to approve the formula in simulation 2 as requested in Ed Chin's letter. Roll call vote passed unanimously.

There is not a lot of historical data to determine the Tribal WHEG Formula 2000-01. There was an attempt to convert also to the independent student formula. The current equity level is $1800. If the equity level increases, the numbers of eligible students increase. Take the $1800 minus the family contribution to calculate the award. The maximum is $1800. Van Ess voiced some concerns - he likes having the same type of formula but concerned if increased award amounts will put more students on waiting lists. Jane indicated this is an element to keep in mind that the applicants will increase slightly. There are no carry over dollars - may need to review in the future to make sure that the most in need are served (not always first to apply). Funding for 2000-01 will be $400,000 (supplied by gaming initiative) assuming no carry over dollars. The tuition at both tribal colleges will either stay the same or increase slightly in 2000-01. We need to consider that this is the second year of the biennium year. Great care must be taken to avoid excessive overawarding, as there will be no source of additional funds available should spending be greater then anticipated. Jeremy Shea made a motion and seconded by Paul Spraggins to accept the Executive Secretary's recommendation of simulation 2000-01. Roll call vote unanimously passed.

The WTG Formula for 1999-00 was reviewed. It is expected that the number of applicants for 2000-01 will be similar to 1999-00 or will increase slightly. The WTG appropriation for 2000-01 is 7% greater than the 1999-00 appropriation. The tuition at the Independent Colleges will increase on the average of 5-7%. The tuition at UW Madison will not increase for 2000-01. A point to consider is that there is no expected carry through dollars. The statute exists that limits the WTG program overcommitment to 122%. Jane, as Executive Secretary, recommends using simulation 2 as recommended by Ralph Wegenke, President of the Independent Colleges. Motion made by Sister Mary Beth Kornely, seconded by Kurt Hinrichsen to approve the formula in simulation 2 as recommended. Roll call vote passed unanimously.

BOARD REPORT #00-12 WISCONSIN INDIAN STUDENT ASSISTANCE GRANT SPECIAL PROJECTS
Sandy Thomas asked the board for direction on how special project money is spent. The Tribal Directors ask that 10% of the money be set aside for special projects aimed at non-traditional students on tribal reservations. Steve Van Ess strongly recommends reaching the cap on spending and is not sure he is ready to take action on this item today. Administrative rule allows special projects in funding lapse, and we don't know what kind of funding lapse there will be. Jeremy Shea feels strongly that the program is to give to needy students rather than the project. There is no past practice of set aside dollars. Jane, as Executive Secretary, suggests moving up the notification of available project money in November at reconciliation time. Chairman Clumpner recommended giving the Directors an answer today instead of delaying the item. A motion was made by Jeremy Shea and seconded by Steve Van Ess to deny the request today but discuss further at the next meeting. Roll call vote unanimously passed.

BOARD REPORT #00-13 GATEWAY TECHNICAL COLLEGE INTERSTATE AGREEMENT
William Nickolai from Gateway Technical College discussed some of the challenges faced because of migration between the two counties. Employers want to send employees to training but, based on residency, they have to pay a different price. The training gets very employer specific. Currently, there are 5 McHenry students attending Gateway and 2 students from Gateway attending McHenry. College of Lake County to Gateway-35 students and Gateway to College of Lake County-10 students. The recommendation from the Executive Secretary was to accept the changes as presented. Motion by Jeremy Shea, seconded by Kurt Hinrichsen to accept the changes as presented. The roll call vote passed unanimously.

FEDERAL ISSUES AND STATUS REPORT
Jane Hojan-Clark presented a brief update of federal issues. President Clinton signed the bill for the Consolidated Appropriation Act. The Pell Grant program was the only higher education program that was cut. There is a 77 million-dollar increase in workstudy and a 60 million in SEOG and a 30 million-dollar increase in Perkins. LEAP was level-funded in the president's budget. The maximum Pell remains at $3300 with a increase of $200 for fiscal year 2000.

BIENNIAL BUDGET ISSUES
Instructions for the biennial budget will come out in May or June. Need to address issues of brain drain and brain gain. Why are post secondary students not staying in Wisconsin? What is the possibility of recruiting those from out of state? Should the Indian Student Assistance grant increase from $1100 to $2200. Also, there is a need to examine the internal mainframe system. We need to take a look at what to do with the computer system, and it may include looking at consultants or software. The April meeting will be instrumental in looking at the next budget period. Jane will be visiting colleges this spring and summer to get feedback.

NO NEW BUSINESS

NEXT MEETING:

Friday, April 28, 2000
Friday, July 21, 2000 (Tentative)

Motion by Jeremy Shea and a second by Julie Schaefer to adjourn. Approved.

Meeting adjourned at 11:50 a.m.