Scholarship plan may force special session

"I am willing to take whatever measures I need to in order to get legislative action on merit scholarships," the governor said in an interview.

Parnell said that does include the possibility of a special session after the Legislature adjourns its 90-day regular session on Sunday night. "But there's time to work something out in the (regular) session," he said.

The Governor's Performance Scholarship is stalled and leaders of the House and Senate say it's not likely to pass. House Speaker Mike Chenault said Parnell previously brought up the potential of a special session on the issue, but Chenault is confident something can still be worked out.

It's not clear what that would be. Parnell said the solution posed by Chenault and Senate President Gary Stevens is unacceptable. The legislative leaders are talking about creating a task force to study the scholarship issue over the summer and fall, with possible action on it next year.

"That's legislative code for 'Let's delay it,' and I don't think our kids can wait," Parnell said. "I want to improve our young people's education opportunities and I'm not willing to wait for that."

Lawmakers have balked at both the price and the details of Parnell's scholarship plan. Many say it's too focused on grades and not enough on financial need.

"We're not going to get to the plan that (Parnell) originally proposed but I hope we at least try to get together a task force ... and spend some time on it and make sure we're putting together the right program," said Chenault, a Nikiski Republican.

PARNELL'S PET PROJECT

The scholarship program has become Parnell's signature issue in this legislative session, his first as governor since taking office in July after the resignation of Sarah Palin. Parnell faces the voters in this year's election.

Parnell's plan would offer scholarships to Alaska high school students who take four years of math, science and English, as well as three years of social studies, and get high enough scores on standardized examinations.

Such students who have an "A" average in high school could get a state scholarship equivalent to full tuition at the University of Alaska to use at an in-state college or job training program. A "B" average could earn 75 percent tuition and a "C-plus" half the tuition. Students could qualify for additional help if they meet those requirements and show they need it.

Parnell wants to pay for the program by creating a $400 million endowment. Earnings and investment profits from the endowment would go for the scholarships. The endowment would make an estimated $20 million a year available to pay the scholarships, although forecasts show that might not cover all students who qualify.

Parnell has said he's open to different ideas for paying for the program. But he said Wednesday that an acceptable scholarship program needs to pass this year and the plan that passed the state Senate doesn't cut it.

Parnell said he wants a scholarship plan to change kindergarten through high school education in Alaska and improve graduation rates. "(The Senate plan) is more of the same," he said.

The Senate bill would expand the existing UA Scholars Program so it will cover the top 15 percent of Alaska high school students instead of the top 10 percent. Students could get a scholarship covering from half to full tuition at the University of Alaska, depending on their class rank in high school.

The bill also plugs $11 million into a scholarship program for needy students and gives loan repayment help to students who take a job in a profession where the Department of Labor finds a shortage.

Anchorage Democratic Rep. Les Gara said it's better than Parnell's plan.

"For less money, you can get more youth into college ... giving money to 'C' students who don't need the money when you're not giving it to people who do need the money? What kind of priority is that?" he asked.