NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

This bill creates the Private Student Tuition Scholarship Act which entitles students attending private secondary institutions to tuition scholarships at the state's public post-secondary institutions. Each eligible student is entitled to the scholarship for each year he/she attended private school up to a maximum of five years. The Act provides for eligible students to begin receiving scholarships during the Fall semester of the year 2000.

FISCAL IMPLICATIONS

This bill makes no appropriation. The impact of implementing this bill is $1,400.0 for the first year of implementation, fiscal year 2001. The impact will grow as per the following table such that in the fifth year, fiscal year 2005, the impact will be $4,200.0 a year. This cost is a recurring expense to the general fund or any fund which supports the Act.

ADMINISTRATIVE IMPLICATIONS

The Commission on Higher Education may adopt rules necessary to implement the provisions of the Private Student Tuition Scholarship Act.

TECHNICAL ISSUES

Without a direct appropriation, the Act may be funded as a tuition waiver program which recognizes student enrollment status and credits tuition through the instruction and general (I&G) higher education funding formula. Like the 3% State Scholarship, the Act may also be funded as a component of the I&G formula.

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