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 6369 NOTE PREPARED: Dec 11, 2023
BILL NUMBER: SB 106 BILL AMENDED:
SUBJECT: Resident Tuition Rate.
FIRST AUTHOR: Sen. Niezgodski BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: This bill provides that an individual who meets certain conditions is eligible for
the resident tuition rate as determined by the state educational institution. It requires such an individual to
verify that the individual meets the criteria to receive the resident tuition rate.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Under the current higher education performance funding formula,
changes to enrollment could affect higher education appropriations for operations in future biennia. The
impact is probably minor and would depend on the higher education formula used in the future. [SEIs receive
state funding through General Fund appropriations.]
Explanation of State Revenues: SEIs could experience changes in enrollment which could impact tuition
fee revenue. This bill will decrease tuition revenue for SEIs received from students currently paying non-
resident rates. However, these losses would likely be offset due to increased enrollment from students newly-
eligible to pay the resident rate. The full impact depends on the administrative decisions of SEIs if
enrollments are at capacity. The difference in resident and nonresident tuition and fee rates for full-time
students for the 2020-2021 academic year ranged from $4,290 (Ivy Tech) to $27,019 (IU Bloomington)
depending on the SEI.
Additional Information – The current number of undocumented students is unknown. The Migration Policy
Institute reports that, as of June 2022, there are 8,350 active recipients of the Deferred Action for Childhood
Arrivals (DACA) program in Indiana, of which an estimated 1,250 (15%) are enrolled in public or private
post-secondary institutions. Undocumented students are not eligible for federal student aid such as Pell
SB 106 1 Grants and subsidized loans or for Indiana’s state financial aid programs. The average statewide difference
between resident and non-resident tuition is approximately $16,600.
The current enrollment rate of approximately 15% of DACA recipients is below the national average of 18%.
A decrease in the cost of enrollment is likely to produce an increase in enrollment among eligible people.
Furthermore, granting DACA recipients eligibility for resident tuition rates could shift where the recipients
enroll, as SEIs with a large difference between resident and non-resident tuition would become substantially
more affordable under the bill. Future total enrollment changes for most SEIs will be impacted to a greater
extent by economic, population, and migration trends.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Commission for Higher Education; State Educational Institutions.
Local Agencies Affected:
Information Sources: National Center for Education Statistics, Integrated Postsecondary Education Data
System (IPEDS); Migration Policy Institute, Deferred Action for Childhood Arrivals Data Tools,
https://www.migrationpolicy.org/programs/data-hub/deferred-action-childhood-arrivals-daca-profiles
https://www.migrationpolicy.org/research/profile-current-daca-recipients-education-industry-and-occupat
ion
Fiscal Analyst: Alexander Raggio, 317-234-9485.
SB 106 2