| TO: | Honorable Dan Branch, Chair, House Committee on Higher Education |
| FROM: | Ursula Parks, Director, Legislative Budget Board |
| IN RE: | HB2755 by Branch (relating to student financial assistance for certain students of WGU Texas or similar online nonprofit colleges or universities.), Committee Report 1st House, Substituted |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2014 | ($337,500) |
| 2015 | ($337,500) |
| 2016 | $0 |
| 2017 | $0 |
| 2018 | $0 |
| Fiscal Year | Probable Savings/(Cost) from General Revenue Fund 1 |
|---|---|
| 2014 | ($337,500) |
| 2015 | ($337,500) |
| 2016 | $0 |
| 2017 | $0 |
| 2018 | $0 |
Under provisions of the bill, the Higher Education Coordinating Board (Board) would be required to provide student financial assistance grants during the 2013-14 and 2014-15 academic years for certain students enrolled at WGU Texas or a similar online nonprofit colleges or universities. The amount of a grant awarded to a student could not exceed the lesser of the maximum annual amount of a tuition equalization grant paid to a student or the amount of the differences between the tuition charged to the student by the college of university in which the student is enrolled for that academic year; and the average tuition charged to a similarly situated student by a general academic teaching institution for that academic year, as determined by the Board. The bill includes specific eligibility requirements for the grant.
The bill would require the Board to conduct a study regarding, and prepare proposed draft legislation for, the creation of a state funded-student financial assistance program that would be available only to students of non-profit, tax-exempt, regionally accredited universities or colleges domiciled in the state that offer competency-based, exclusively online or other distance education and under which the highest priority is given to awarding grants to those eligible students who demonstrate the greatest financial need. The Board would submit the results of the study to each standing committee of the legislature with primary jurisdiction of higher education by October 1, 2014.
Based on information provided by the Higher Education Coordinating Board (Board), 375 students attending WGU Texas would qualify for the need based award. The Board also estimates that the average award would be $900 per student in each year of the biennium. Based on these assumptions, the general revenue costs associated with the program would be $337,500 in fiscal year 2014 and $337,500 in fiscal year 2015 to cover the two academic years specified in the bill.
Any costs associated with the study would be absorbed within current resources.
| Source Agencies: | 781 Higher Education Coordinating Board
|
| LBB Staff: | UP, KK, SK, GO
|