Colorado Legislative Council Staff

STATE and LOCAL

FISCAL NOTE

No State General Fund Impact

Cash Fund Revenue and Expenditure Impact

School District Expenditure Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-294

Rep. Bacon

Date:

Bill Status:

Fiscal Analyst:

January 10, 1998

House Education

Harry Zeid (866-4753)

 

TITLE:            CONCERNING PAYMENT OF TUITION FOR STUDENTS ENROLLED IN INSTITUTIONS OF HIGHER EDUCATION THROUGH THE “POSTSECONDARY ENROLLMENT OPTIONS ACT”.



Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Cash Fund



Possible Tuition Revenue Reduction*

State Expenditures

General Fund

Cash Fund


Possible Higher Education

 Expenditure Reduction*

FTE Position Change

None

None

Local Government ImpactThe bill will affect the cash flow of participating school districts and may affect the level of program expenditures for certain school districts.

            *The bill may reduce enrollment through the Postsecondary Enrollment Options Act, thereby reducing tuition revenue at certain institutions of higher education, with a corresponding reduction in higher education expenditures.


            Under the “Postsecondary Enrollment Options Act”, high school students enrolled in the 11th and 12th grades that are in need of course work at a higher academic level than that available at the pupil’s school are eligible to apply to enroll in courses at an institution of higher education. The school district and the institution of higher education then enter into a cooperative agreement regarding the enrollment and funding method for the pupil. If the pupil enrolled voluntarily drops a course without consent of the principal of the high school, it becomes the responsibility of the pupil, or the pupil’s parent or guardian to reimburse the school district for the amount of the tuition paid by the school district to the institution of higher education.


            This bill would require any high school pupil who enrolls in courses at an institution of higher education under the “Postsecondary Enrollment Options Act”, or the pupil’s parent or guardian, to pay the tuition for the courses directly to the institution of higher education. The tuition payment would be subject to reimbursement by the school district upon presentation of evidence of passage of the course. The tuition payment requirement by the parent would be waived for any pupil who is eligible for free or reduced-cost lunch pursuant to the federal “National School Lunch Act”.


            Since school districts would not pay the tuition directly to the institutions of higher education at the beginning of the semester, but would rather, reimburse the parent for the tuition payment after the class has been completed, the bill would positively affect the cash flow of participating school districts. The bill may affect the number of students that choose to enroll in courses under the “Postsecondary Enrollment Options Act”, thereby affecting the revenues and expenditures of certain institutions of higher education, as well as the expenditures of certain school districts. Therefore, the bill is assessed as having state and local fiscal impact. The bill would become effective upon signature of the Governor.



State Revenues and Expenditures


            Since payment of tuition to the institution of higher education will be required of the student, parent, or guardian before the student may enroll in the class, the bill may affect the number of students that enroll in course work at institutions of higher education through the “Postsecondary Enrollment Options Act”. This may affect the decision of some students to enroll in certain courses. The revenues and expenditures of some institutions of higher education may therefore be impacted.



School District Impact


            Under current law, if a pupil enrolled in course work through the “Postsecondary Enrollment Options Act” voluntarily drops a course without consent of the principal of the high school, it becomes the responsibility of the pupil, or the pupil’s parent or guardian to reimburse the school district for the amount of the tuition paid by the school district to the institution of higher education. The bill would require the payment of tuition from every student for the course work at the time of enrollment. Therefore, school districts would not have to seek reimbursement from parents if the student does not complete the course.


            Expenditures by school districts for the “Postsecondary Enrollment Options Act” are based on enrollment in the program. Therefore, school district expenditures would be reduced if the number of students that enroll in courses are reduced.


            The table below identifies the number of credit hours and the FTE pupil count for courses taken by high school students under the Postsecondary Enrollment Options Act during FY 1996-97.



FY 1996-97 Credit Hours and FTE Pupil Count Under the

Postsecondary Enrollment Options Act



College Board

Credit

Hours

FTE

Pupil Count

State Colleges

State Board of Agriculture

C.U. Regents

School of Mines

University of Northern Colorado

SBCCOE

Local District Colleges

   Total

1,448

1,166

1,292

0

95

11,481

  5,127

20,609

48.2

38.9

43.1

0

3.2

382.9

  70.9

687.2



Spending Authority


            The fiscal note would imply that no new spending authority or appropriations are required for FY 1998-99 to implement the provisions of the bill.



Departments Contacted


            Education       Colorado Commission on Higher Education