|Date Requested:February 14, 2009
Time Requested:12:29 PM
| FUND(S) |
Sources of Revenue
|Other Fund Tuition|
Legislation creates:A New Program
Effect this measure will have on costs and revenues of state government.
| $500,000 reduction in education and general fee collections (assuming no state appropriation to offset the lost revenue) for FY 2010.
This state legislation would require public institutions of higher education to enter into an agreement with the U.S. Secretary of Veterans Affairs that effectively allows post-9/11 non-resident veterans to receive free tuition and fees.
Under the federal legislation, all veterans, regardless of whether they are resident or non-resident students receive an amount equal to the public institution’s resident tuition rate. Additionally, the federal legislation creates an optional matching program under which the federal government would cover 50% of the difference between the resident and non-resident rates if an institution covers the remaining 50% of the difference, which is the subject of this legislation.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||-500,000||-500,000|
3. Explanation of above estimates (including long-range effect):
Assuming that no additional non-resident veterans enrolled in public institutions of higher education, it would cost institutions approximately $375,000 in forgone tuition and fees to provide this benefit.
Additionally, it should be assumed that this new program will encourage more non-resident veterans to attend public institutions of higher education. A 25% increase would cost institutions an additional $125,000.
As tuition and enrollment of eligible non-resident veterans increase, the amount of tuition waivers will increase at the institutions.
Finally, it should be noted that the federal matching program would produce $375,000 in new federal revenue to support veterans. This, however, does not mean that public institutions of higher education will receive that additional amount because institutions otherwise would have received the difference from the veteran.