SB 0723 - Fiscal Note

Fiscal Note - SB 0723 - Establishes college tuition exemption for senior citizens

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3079-02

BILL NO. SB 723

SUBJECT: Education, Higher: Senior Citizens

TYPE: Original

DATE: February 10, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Coordinating Board For Higher Education (CBHE) assume the proposal would result in no fiscal impact on CBHE because the requirements would be administered by the institution chosen by the prospective student. CBHE does assume there could be some fiscal impact since several institutions do not currently have such tuition waivers for senior citizens. However, many institutions have related policies that are more generous than those provided in the proposal. For example, some such policies apply to persons over 60 and also apply to for-credit courses.

Officials from Northwest Missouri State University state they offer a program similar to the proposal. Their policy states that senior citizens are defined as persons who have passed their 65th birthday as evidenced by a driver's license or other identification. The total semester or session tuition (including nonresident tuition, if applicable) is covered by a fee reduction form approved the Treasurer, Bursar or Director of Human Resources Management and presented to the cashier office. All other applicable fees must be paid by the student. Therefore, NMSU officials assume the proposal would result in no fiscal impact to the university.

Officials from Metropolitan Community College and Truman State University assume the proposal would have no fiscal impact on them because they already have a policy to waive tuition for senior citizens.

Officials from Missouri Southern State College assume the proposal would result in no fiscal impact as long as the awards are on a space available basis.

Officials from Moberly Area Community College, Central Missouri State University, Linn State Technical College, Harris-Stowe State College and Missouri Western State College assume the proposal would have no fiscal impact on the institutions.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

Any Missouri resident at least sixty-five years of age on or before August first of a school year and possessing the certain qualifications would be awarded a scholarship to a state educational institution of the person's choice. The scholarship would be an exemption from tuition.

Each state educational institution would determine the number of students who could receive the tuition benefit based on available class space after tuition-paying students enrolled.

A person receiving tuition-free courses would take all courses on a non-credit basis and would satisfy all course prerequisites of the institution. An institution could charge a registration fee, not to exceed twenty-five dollars per semester, from any person receiving a scholarship at that institution.

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

Truman State University

Central Missouri State University

Missouri Western State College

Linn State Technical College

Moberly Area Community College

Metropolitan Community College

Harris-Stowe State College

Jeanne Jarrett, CPA

Director

February 10, 1998