OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-5
AN ACT CONCERNING HIGHER EDUCATION AFFORDABILITY
AND ACCOUNTABILITY.
Primary Analyst: DD 3/19/25
Contributing Analyst(s):
Reviewer: JS
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
Higher Ed., Off. GF – Cost Potential
Significant
Potential
Significant
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill results in potentially significant costs annually beginning in
FY 26 to the Office of Higher Education. The bill establishes a uniform
grant amount of $4,500 for full-time recipients of the Willis Scholarship
need-based grant (with proportionately lower amounts for part-time
recipients).
The bill requires OHE to make need-based payments to eligible
students at the uniform amounts but does not specify that such
payments must be made to all eligible students. The analysis below
assumes that this is what would occur. If the bill is interpreted
otherwise, the cost will be significantly lower.
The bill's annual estimated cost may include the following:
1
• Grants for all eligible need-based students: In FY 24, 16,279
1
All estimates are based on FY 24 figures, as that is the most recent year for which
comprehensive data about recipients and eligibility is available. Figures will fluctuate
based on the number of students who are eligible, and the number who apply, each
year. 2025SB-00005-R000164-FN.DOCX Page 2 of 3
students were eligible for a need-based award but did not
receive one.
2
The cost of providing awards to these students,
at the levels set by the bill, is estimated to be $66.4 million
annually.
3
• Increased need-based award amounts: In FY 24, 11,452
students received need-based awards, at average award
amounts of $3,209 for full-time students and $1,621 for part-
time students. The cost of increasing awards to these students
to the bill's levels is estimated to be $13.4 million annually.
• Maintaining baseline funding at current levels: In FY 24, due
to the availability of ARPA funding, total spending on the
Willis Scholarship (both need-based and need-merit) was
$41.5 million. The General Fund appropriation was $24.9
million. The cost of funding Willis Scholarship at FY 24 levels,
over the FY 25 General Fund appropriation, is $16.5 million.
• Funding for need-merit awards: The bill does not change the
formula for Willis Scholarship need-merit grants, but it may
result in additional costs for these grants. Current law requires
OHE to provide for need-merit grants the greater of: (1) 20%
to 30% of total Willis Scholarship funding; or (2) $10 million.
To comply with this provision, if Willis Scholarship need-
based funding was increased as described above, need-merit
funding would also need to be increased by approximately $18
million.
CGS Sec. 10a-173(b) allows OHE to carryforward up to $15 million of
the FY 25 Willis appropriation to FY 26. To the extent that this funding
2
The U.S. Department of Education is transitioning from Expected Family
Contribution to Student Aid Index as a measure of student need on the Free
Application for Federal Student Aid (FAFSA). OHE uses FAFSA to determine
eligibility for Willis Scholarships. It is not known how this transition will impact the
population of students eligible.
3
Presumably, some of these students could receive a need-merit award, instead of a
need-based award. This analysis assumes that all such students would receive need-
based grants. 2025SB-00005-R000164-FN.DOCX Page 3 of 3
is available in FY 26, it reduces the amount needed to fund the bill's
provisions in FY 26 only.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation and to the number of Willis
Scholarship need-based grants awarded.