Fiscal Note - SB 0365 - Missouri Tomorrow Education Act
L.R. NO. 1135-01
BILL NO. SB 365
SUBJECT: Education, Higher: Banks and Financial Institutions
TYPE: Original
DATE: February 25, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Governor's Office, Office of Administration, Linn State
Technical College, Central Missouri State University, Southwest Missouri
State University, Harris-Stowe State College, East Central College, North
Central Missouri College and Missouri Western State College assume the
proposal would result in no fiscal impact to them.
Officials from the University of Missouri assume the proposal would appear to
have no direct cost impact on the university; however, the prepaid tuition
program does result in potential foregone tuition and fee income given the
structure of the prepaid program. The amount of the foregone income could
not be determined by university officials.
Officials from the Coordinating Board For Higher Education (CBHE) state the
section 166.203 of the proposal provides that the trust would be located
within the Department of Higher Education but will "exercise its prescribed
powers, duties, and functions independently" of the department. Section
166.207 (3) provides that the costs of administration and organization of the
trust and the fund would be paid by money deposited into the fund by program
participants. CBHE officials assume that although it would be the location
of the Missouri Tomorrow Education Trust, the trust is independent, and CBHE
would not have any responsibility for the administration of the fund,
publicity for the program, or payment of board expenses unless such services
would be contracted and paid for by the governing board of the trust.
Officials from the Office of Administration and Coordinating Board For Higher
Education explained to the Oversight Division that the trust has never been
funded. Therefore, Oversight assumes the proposal would have no fiscal
impact on the current operations of the trust.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
DESCRIPTION
The proposal would change the name of the Missouri Access to Higher Education
Act to the Missouri Tomorrow Education Act. The proposal would expand the
definition of "tuition" to include fees charged by independent institutions
of higher education and fees required as a condition of enrollment. Tuition
would exclude fees charged to out of state residents by state institutions,
laboratory fees, room and board or other similar charges.
The Missouri Tomorrow Education Trust would no longer be located in the
Office of Administration but in the Department of Higher Education. The term
of the members of the board of the trust would increase from three years to
six years. Members could be reappointed to serve additional terms.
The proposal would delete the provision stating that refunds would not exceed
the prevailing tuition cost for the state institution which charges the
lowest rate of tuition, the amount of the refund would be reduced by the
amount transferred to a community junior college and state institution. The
proposal deletes the provision allowing an advance tuition payment contract
to authorize a person to terminate the contract and to direct the payment to
a designated institution.
The proposal deletes language stating that an advance tuition payment
contract would not be entered into until the trust has solicited answers from
the United States Internal Revenue Service and United State Securities and
Exchange Commission.
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
Coordinating Board For Higher Education
Governor's Office
University of Missouri
Southwest Missouri State University
Central Missouri State University
Missouri Western State College
Harris-Stowe State College
Jefferson College
East Central College
Linn State Technical College
NOT RESPONDING: State Treasurer's Office, Northwest Missouri State
University, Truman State University, State Fair Community College, Missouri
Southern State College, Southeast Missouri State University, Lincoln
University, Crowder College, Moberly Area Community College, Metropolitan
Community College, St. Charles County Community College, Three Rivers
Community College
This Fiscal Note is not an official copy and should not be quoted or cited.