Colorado Legislative Council Staff

STATE

CONDITIONAL FISCAL NOTE

TABOR Refund Impact

General Fund Expenditure Impact

Cash Funds Revenue and Expenditure Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-662

Rep. Dyer

 

Date:

Bill Status:

Fiscal Analyst:

February 3, 1998

House Education

Janis Baron (866-3523)


TITLE:            CONCERNING THE EDUCATIONAL PROGRAMS OF FORT LEWIS COLLEGE.


Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Cash Funds — Student Tuition and Fees



Possible Increase In Student Tuition And Fees

State Expenditures

General Fund

Cash Funds — Student Tuition and Fees


Possible Increase In GF Due To Increased Enrollment

Possible Increase In Student Tuition And Fees

FTE Position Change

None

None

Local Government Impact — None


            The bill eliminates the prohibition of graduate level instruction at Fort Lewis College (FLC) from the college’s role and mission. The bill is effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.


State Revenues


            Although the bill eliminates the current prohibition against graduate instruction and programs at Fort Lewis College, it does not authorize or mandate graduate programs. The Colorado Commission on Higher Education (CCHE) indicates that in order for graduate programs to begin at the college, both the State Board of Agriculture (SBA) and CCHE would have to approve them. To the extent that graduate programs are offered, there would be additional revenue from tuition and fees. At this point, the level of tuition and fee increases cannot be quantified.


TABOR Refund Impact


            Section 20 of Article X of the Colorado Constitution, limits the maximum annual percentage increase in state fiscal year spending. Once total state revenue from all sources that are not specifically excluded from fiscal year spending exceeds these limits for the fiscal year, the state constitution requires that the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Based on the current Legislative Council economic forecast, it is projected that the state will be in a TABOR refund position during each of the next five fiscal years. Any increase or decrease in state revenue from changes in fees, fines, licenses, or other revenue sources will affect the amount of the state revenue to be refunded.


State Expenditures


            As stated in the State Revenues section of this fiscal note, CCHE and the SBA would have to approve graduate programs at FLC prior to programs beginning. If FLC were granted approval for graduate programs, graduate FTE would count as other student FTE under the current funding mechanism. The table below provides a comparison of student enrollment for FY 1996-97, at four schools, including FLC. All of these schools are predominantly undergraduate institutions, although Adams State College, Mesa State College, and the University of Southern Colorado offer limited graduate programs.



Institution

Undergraduate

 FTE

Graduate

 FTE

Resident

 FTE

Nonresident

 FTE

Fort Lewis College

Adams State College

Mesa State College*

University of Southern Colorado

4,189.4

2,088.6

4,072.6

3,519.0

0.0

206.9

0.0

263.8

2,934.9

1,869.1

3,666.5

3,199.2

1,254.5

426.4

406.1

483.6


             * Approximately 20 graduate students enrolled at Mesa State College for the Fall 1997.


            The SBA indicates that FLC is currently at 135 percent of capacity and cannot absorb much additional growth, which would require FLC to fit graduate enrollment into normal enrollment growth. It is anticipated that the only graduate programs FLC would consider offering are a Masters in Accounting and Teacher Licensure. The college currently offers credits in both of these academic disciplines, although a graduate degree is not offered in either program.


            For FY 1997-98, the General Fund cost per resident student FTE at FLC is $3,250. The FY 1997-98 tuition at FLC is $1,618 per year per resident student FTE carrying 15 semester hours each semester. Assuming a graduate program was approved and 20 students enrolled at FLC in FY 1998-99, the estimated total cost would be $97,360, using FY 1997-98 GF costs per resident student FTE and tuition.

 

Spending Authority


            No additional spending authority is required under HB 98-1252.


Departments Contacted


            Higher Education