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 Impact — The 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