LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6403 NOTE PREPARED: Dec 14, 2021
BILL NUMBER: HB 1044 BILL AMENDED:
SUBJECT: Tuition Caps.
FIRST AUTHOR: Rep. Harris BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: The bill provides that the Commission for Higher Education (CHE) shall
determine a tuition rate and mandatory fee cost of living adjustment for specified postsecondary educational
institutions. It requires that, except for cost of living adjustments, the tuition rate and mandatory fees at
specified postsecondary educational institutions may not increase from the time the student initially enrolls
until the student graduates for an undergraduate student who is an Indiana resident.
Effective Date: July 1, 2022.
Explanation of State Expenditures: State Financial Aid: The tuition and fee cap would have an
indeterminate effect on expenditures for state financial aid programs including the 21st Century Scholars
Program and educational fee exemptions for Children and Spouses of Veterans and Public Safety Officers
(CVO). [Both programs cover full tuition and fees at Indiana’s public colleges and universities for eligible
Indiana students.]
State Educational Institutions: The bill’s requirements represent an additional workload on the State
Educational Institutions in order to change their tuition pricing system and track whether students are eligible
for the tuition caps. If the change would require significant changes to university and college computer
systems, additional funding may be required. The additional funds and resources required could be supplied
through existing staff and resources currently being used for other purposes or with new appropriations.
[State Educational Institutions receive state funding through General Fund appropriations.]
Additional Information - Beginning with FY 2023, tuition and fee increases for resident undergraduate
students who are enrolled in a degree program at a public college or university would be limited to a cost of
HB 1044 1 living adjustment based on the Consumer Price Index. Any decrease in tuition revenue due to tuition caps
would likely be offset in the future by tuition increases for students not covered by the tuition cap. This group
includes new students, graduate students, out-of-state students, transfer students, and students who withdraw
and later re-enroll. Larger tuition increases for new students may impact expenditures for certain state
financial aid programs in the future.
CHE should be able to determine the tuition rates and mandatory fee cost of living adjustment with no
additional appropriations, assuming near customary agency staffing and resource levels.
Explanation of State Revenues: The bill would have an indeterminate effect on tuition revenue for State
Educational Institutions. Tuition and fee revenue from enrolled undergraduate students may decrease when
the bill goes into effect. However, any decrease in revenue may be offset over time by higher tuition rates
for new students, graduate students, out-of-state students, transfer students, and students who withdraw and
later re-enroll.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Commission for Higher Education; State Educational Institutions.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Camille Tesch, 317-232-5293.
HB 1044 2