OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sSB-854

AN ACT CONCERNING TUITION AND FEE WAIVERS FOR VETERANS AND MEMBERS OF THE CONNECTICUT NATIONAL GUARD AT PUBLIC INSTITUTIONS OF HIGHER EDUCATION.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Board of Regents for Higher Education

General Fund/Tuition Fund - Cost

up to 32,900

up to 32,900

UConn

Tuition Fund - Revenue Loss

up to 97,510

up to 97,510

Board of Regents for Higher Education

Tuition Fund - Revenue Loss

1.3 million - 4.8 million

1.3 million - 4.8 million

Note: Various=Various

Municipal Impact: None

Explanation

The bill results in revenue loss to the Board of Regents for Higher Education of between $1.3 million and $4.8 million and to the University of Connecticut (UConn) of $97,510 in both FY 18 and FY 19. The foregone revenue is due to: (1) expanding the higher education tuition waiver program for eligible veterans, as well as active National Guard members, to include payments of any fees for educational extension programs and summer sessions, and (2) extending the tuition waiver program to Charter Oak State College students.

The foregone revenue at UConn is due to expanding the fee waiver to include its 114 students who are National Guard members. UConn already provides this waiver to 166 veterans. However, the UConn Board of Trustees' March meeting will include discussion of a proposal to expand the fee waiver in the same manner as the bill. If the board votes to adopt the fee waiver, then the bill will not result in foregone revenue.

The foregone revenue at the Board of Regents for Higher Education is due to: (1) waiving extension fees for its 406 students who are National Guard members and its 1,247 students who are veterans, and (2) waiving tuition for National Guard and veteran students at Charter Oak State College. The foregone revenue from the extension fee waiver is $4.7 million if all eligible students take one course during the summer sessions and intersession, or $1.2 million if one-quarter do this.

The foregone revenue from the Charter Oak tuition waiver is $176,700, affecting 79 students. If the college's enrollment of eligible students rises by half due to the bill, the revenue loss rises to $264,375, and Charter Oak's instructor costs increase to $32,900.

The impact to the Board of Regents for Higher Education is larger because: (1) more veterans and National Guardsmen attend its multiple colleges and universities, (2) unlike UConn, it is not already waiving extension and summer fees for veterans, and (3) also unlike UConn, the extension fee is the entire per-course cost of summer and extension classes.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation in fees and changes in the numbers of students who are active National Guard members or veterans who participate in summer sessions and extension programs.