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March 14, 2022 HB 22-1155
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0339
Rep. Will; McCluskie
Sen. Gonzales
Date:
Bill Status:
Fiscal Analyst:
March 14, 2022
House Education
Josh Abram | 303-866-3561
Josh.Abram@state.co.us
Bill Topic: IN-STATE TUITION FOR CO HIGH SCHOOL GRADUATES
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
This bill requires that an institution of higher education classify a student as in-state
for tuition purposes if a student graduated from a Colorado high school or completed
a high school equivalency exam in Colorado, and has resided in the state for at least
one year prior to enrolling at the institution. The bill increases state revenue and
expenditures starting in FY 2022-23.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Summary of Legislation
Under current law, students who attend high school in the state for at least three years prior to
enrolling at a state supported institution of higher education must be classified as in-state for tuition
purposes. The student must be admitted to the school of higher education within one year following
graduation or completing a high school equivalency exam. This bill instead requires that an institution
classify a student as in-state for tuition purposes if the student graduated from high school or
completed a high school equivalency exam in Colorado, and has resided in the state for at least
one year prior to enrolling at the institution.
Background and Assumptions
It is estimated that about 40 percent of Colorado students enroll at state institutions of higher
education in the year following graduation. Another six percent enroll within the following two years.
In recent years, about 1,400 students who cannot independently establish domicile in Colorado, but
otherwise meet the resident requirements, are classified as in-state students. These students attended
high school for at least three years and enrolled within one year of graduation. Assuming that these
1,400 students are roughly 40 percent of similar eligible graduates (3,500 students), and that six percent Page 2
March 14, 2022 HB 22-1155
of those delayed enrollment beyond the first year following graduation, total eligibility increases by
about 210 students. Removing the requirement that students attend at least three years of high school
before graduation also increases the number of eligible students by a minimal amount, but this
number has not been estimated.
Once a high school graduate delays enrollment beyond the first few years after graduation, he or she
is 22 or older, and can independently establish residency for in-state tuition classification. This bill
only increases eligibility for students under 22 who have delayed enrollment, and for students who
graduate from a Colorado high school but had not been enrolled for at least three years.
State Revenue and Expenditures
The bill increases resident enrollment at state supported institutions of higher education, impacting
both institutional revenue from tuition, and the expenditures and workload of the schools and the
Department of Higher Education (DHE).
Institutional tuition revenue. Increasing the number of students enrolled in higher education
increases the amount of tuition revenue collected and spent by schools to provide postsecondary
education. Due to institutions’ enterprise status, this revenue is not subject to TABOR. Any increase
in tuition revenue may be partially offset by tuition reductions for students currently paying
nonresident tuition; however, this population of students is assumed to be small and their enrollment
spread across multiple institutions.
Department of Higher Education. Increased enrollment in postsecondary education creates
workload for the DHE and schools to assist students with the Colorado Application for State Financial
Aid (CASFA). No change in appropriations is required.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State and Local Government Contacts
Higher Education
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.