FOSTERING FUTURES SCHOLARSHIP ELIGIBILITY

House Bill 4406 as referred to second committee

Sponsor:  Rep. Gregory Markkanen

1st Committee:  Families, Children and Seniors

2nd Committee:  Ways and Means

Complete to 6-6-19

SUMMARY:

House Bill 4406 would amend the Fostering Futures Scholarship Trust Act to expand eligibility requirements for a scholarship to include attendance in a training program to prepare students for gainful employment in a recognized occupation.

Currently, a foster care student is eligible for a Fostering Futures Scholarship if all of the following apply:

·         Due to child abuse or child neglect, the foster care student was in foster care after his or her thirteenth birthday.

·         The student is attending an institution of higher education in this state as determined by the Department of Treasury.

·         The student has an unmet financial education need.

·         The student has completed the application and provided the department with the required documentation.

·         The student maintains satisfactory academic progress as determined by the department.

The bill would amend the second requirement above to also allow a student attending a training program to prepare students for gainful employment in a recognized occupation to be eligible for a scholarship if the other requirements were met.

The bill would take effect 90 days after its enactment.

MCL 722.1027b

BACKGROUND:

The Fostering Futures Scholarship provides awards of up to $3,000 per academic year to assist former foster care students with college expenses. The awards can be used for tuition, required fees, books, supplies, and room and board at participating institutions. Awards are available on a first-come, first-served basis, subject to available funding. There is no maximum student age restriction. The application deadline for the 2019-20 academic year is June 30, 2019.[1]

FISCAL IMPACT:

House Bill 4406 likely would increase costs by an unknown amount for the Fostering Futures Scholarship program by expanding the eligibility for participation. According to the Department of Treasury, the current balance of the Fostering Futures Scholarship Trust Fund is $26,423. Under the Fostering Futures Scholarship Trust Fund Act, the trust fund may accept money granted by the federal government for the purposes of the act, grants, bequests, donations, and contributions to the fund by individuals under section 435 of the Income Tax Act.

POSITIONS:

Representatives of the following entities testified in support of the bill (5-15-19):

·         Department of Treasury

·         Fostering Success Michigan

·         Michigan’s Children

·         Michigan League for Public Policy

·         State Public Affairs Committee of the Michigan Junior Leagues

·         The New Foster Care

                                                                                         Legislative Analyst:   E. Best

                                                                                                 Fiscal Analyst:   Ben Gielczyk

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.

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