THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY YUDICHAK, BENNINGHOFF, P. COSTA, FREEMAN, GEORGE, GRUCELA, KIRKLAND, MELIO, MICOZZIE, M. O'BRIEN, PALLONE, READSHAW, SCAVELLO, SIPTROTH AND YOUNGBLOOD, FEBRUARY 6, 2009

REFERRED TO COMMITTEE ON APPROPRIATIONS, FEBRUARY 6, 2009  

AN ACT

Directing the transfer of funds from certain accounts of the

General Assembly to the Higher Education Assistance Fund for

the purpose of providing financial aid in the form of grants

to students by the Pennsylvania Higher Education Assistance

Agency.

The General Assembly of the Commonwealth of Pennsylvania

finds and declares that:

(1)    Due to the drastic increase in the average cost of

tuition and fees to public and private universities, increased

subsidization is needed to compensate for those rising costs in

higher education.

(2)    Currently available programs are not adequate for

funding the needs of students within this Commonwealth, leading

to increased debt among college and professional school

graduates as a result of subsidizing with high-interest private

loans.

(3)    As the worldwide financial crisis continues, the pool of

available credit continues to decrease, leaving students with

limited options for funding.

(4)  Increased availability of higher education grant

programs will provide adequate funding for citizens of this

Commonwealth to attend institutions of higher education, will

contribute to the retention of educated individuals in this

Commonwealth and will benefit Pennsylvania's communities.

(5)    Increased funding in the form of higher education

assistance grants will make this Commonwealth more competitive

with other states in terms of educational affordability,

retention of citizens and productivity.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Endow

Pennsylvania’s Future Act. 

Section 2.  Purpose.

The purpose of this act is to increase funds available to

Pennsylvania residents seeking financial education assistance in

the form of grants through the Pennsylvania Higher Education

Assistance Agency through a transfer of funds.

Section 3.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Accounts."  All of the following:

(1)  The Caucus Operations Account (R) of the Senate or

any other account that is used by the Senate for the same

purpose.

(2)  The Caucus Operations Account (D) of the Senate or

any other account that is used by the Senate for the same

purpose.

(3)  The Special Leadership Account (R) of the House of

Representatives or any other account that is used by the

House of Representatives for the same purpose.

(4)  The Special Leadership Account (D) of the House of

Representatives or any other account that is used by the

House of Representatives for the same purpose. 

"Agency."  The Pennsylvania Higher Education Assistance

Agency established under the act of August 7, 1963 (P.L. 549,

No. 290), known as the Pennsylvania Higher Education Assistance

Agency Act.

"Grants."  Funding provided by the Pennsylvania Higher

Education Assistance Agency to eligible applicants as authorized

under section 4(1.3) of the act of August 7, 1963 (P.L. 549, No.

290), known as the Pennsylvania Higher Education Assistance

Agency Act, for use to defer the cost of higher education. 

Section 4.  Transfer of funds.

The following amounts shall be lapsed from the accounts and

shall be transferred from the accounts to the Higher Education

Assistance Fund no later than July 1, 2009: 

(1)  The Caucus Operations Account (R) of the Senate or

any other account that is used by the Senate for the same

purpose, the sum of $25,000,000.

(2)  The Caucus Operations Account (D) of the Senate or

any other account that is used by the Senate for the same

purpose, the sum of $25,000,000.

(3)  The Special Leadership Account (R) of the House of

Representatives or any other account that is used by the

House of Representatives for the same purpose, the sum of

$25,000,000.

(4)  The Special Leadership Account (D) of the House of

Representatives or any other account that is used by the

House of Representatives for the same purpose, the sum of

$25,000,000.

Section 5.  Use of transferred funds.

The moneys transferred under section 4 shall be used by the

agency to make grants.

Section 6.  Effective date.

This act shall take effect immediately.