COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         3061-02

Bill No.:          Perfected SCS for SB 830

Subject:           Education, Higher; Military Affairs; Higher Education Department.

Type:              Original

Date:               February 13, 2008

Bill Summary:            This proposal limits the tuition that may be charged by a higher education institution to certain combat veterans.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials at the Department of Higher Education (DHE) assume the provisions of this bill will require work on the part of DHE staff, but the DHE assumes theses additional duties can be performed with existing resources.

Officials at the Linn State Technical College assume losses as follows:

FY 2009= $252,720 39 students affected x 72 credit hours x $140/credit hour = $393,120

                                                                                                x $50/credit hour = $140,400

                                                                                                                                    $252,720

FY 2010= $277,488 41 students affected x 72 credit hours x $144/credit hour = $425,088

                                                                                                x $50/credit hour = $147,600

                                                                                                                                    $277,488

FY 2011= $303,408 43 students affected x 72 credit hours x $148/credit hour = $458,208

                                                                                                x $50/credit hour = $154,800

                                                                                                                                    $303,408

Officials at the Metropolitan Community College assume a negative fiscal impact of approximately $335,000 in lost tuition revenue in the first year of the enactment of this proposal.

In a previous version of this bill, officials at the University of Missouri (UM) assume the total cost to the UM would be more than $2.4 million if this proposal is adopted. The loss would be as follows:

University of Missouri - Columbia = $605,415.

University of Missouri - Kansas City = $782,458.

University of Missouri - Rolla = $398,362.

University of Missouri - St. Louis = $839,208.

This includes students at the undergraduate, graduate and professional level.

Officials at the University of Central Missouri (UCM) assume administrative costs to collect and review paperwork to determine eligibility would be $8,721 to cover a half-time employee to do the work. Additionally, UCM assumes lost tuition revenue estimated at $508,680 per year based on 108 students now enrolled in this category at 30 credit hours per year times $157 lost per credit hour.

ASSUMPTION (continued)

Officials at the Missouri State University assume at a current cost of $175.00/credit, the savings to the student and cost to the institution would be $129.00. Assuming 49 veterans, each taking an average of 30 credits at a discount of $129.00 per credit the cost/loss of revenue to be made up by the institution would be (49 x 30 x 129) = $189,630. If inflation is 3% per year, the cost to the institution in 2010 would be $195, 319, and in 2011 would be $201, 178.

Officials at the Lincoln University assume a possible modest fiscal impact in the form of lost tuition revenue.

Officials at the Truman State University assume that there is no fiscal impact from this proposal.

Officials from the Office of the Secretary of State (SOS) state many bills considered by the General Assembly include provisions allowing or requiring agencies to submit rules and regulations to implement the act. The SOS is provided with core funding to handle a certain amount of normal activity resulting from each year’s legislative session. The fiscal impact for this fiscal note to the SOS for Administrative Rules is less than $2,500. The SOS recognizes that this is a small amount and does not expect that additional funding would be required to meet these costs. However, the SOS also recognizes that many such bills may be passed by the General Assembly in a given year and that collectively the costs may be in excess of what the office can sustain with the core budget. Therefore, the SOS reserves the right to request funding for the cost of supporting administrative rules requirements should the need arise based on a review of the finally approved bills signed by the governor.

Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process.

Oversight assumes there would be no direct effect on state revenue. Oversight recognizes that the universities will lose tuition funding but tuition income is not general revenue or state money.

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

FISCAL DESCRIPTION

The proposed legislation appears to have no fiscal impact.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Higher Education

Truman State University

Linn State Technical College

Metropolitan Community College

University of Missouri

Lincoln University

University of Central Missouri

Office of the Secretary of State

Missouri State University

University of Missouri

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 13, 2008