Two States Consider Paying Tech School Tuition

In what could be the beginning of a new trend in state economic development incentive/inducements, bills receiving bi-partisan support in the Michigan and Delaware state legislatures would address businesses= needs for more technically skilled workers by having the states pick up the students' tab for community college tuition and technical training.

Governors in at least 14 other states have proposed establishing, increasing or expanding scholarship programs this year, according to SSTI's latest Issue Brief Science & Technology in the States: Excerpts from the 1999 Governors' Addresses (see related article in this Digest).

Michigan

A bill introduced in the Michigan Senate last week would provide a $300 state tax credit to cover the balance of a student's Michigan community college tuition that is not covered by the federal Hope Scholarship tax credit. The state tax credit would be available to all students from two-parent households with incomes under $100,000 and single-parent families with less than $50,000 in annual income. The bill's sponsor estimates 90 percent of Michigan's 120,000 community college students would be eligible to use the credit.

Possible revenue sources to cover the tax credit's $30 million cost to the state include a portion of the state=s share of the national tobacco settlement, new revenues generated from the strength of the Michigan economy, and existing jobs' program monies.

Delaware

In Delaware, the House Education Committee unanimously approved last week a bill that would allow any Delaware student who graduates from a public or private high school with at least a 3.0 grade point average to attend the Delaware Technical and Community College free for two years. Students must be accepted and enrolled as a technology student. Funds would be available on a reimbursement basis, after the student passes each semester with a minimum 2.7 average (3.0 average cumulative).

Students also must apply for all appropriate state financial aid programs and the Federal Pell grant. Pell grant recipients may only receive half-tuition reimbursement from the state program.

State education officials estimate 150 students of the school would be eligible under the tuition incentive program, making the cost to the state approximately $425,000 annually.