LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6610 NOTE PREPARED: Dec 12, 2024
BILL NUMBER: HB 1222 BILL AMENDED:
SUBJECT: Resident Tuition Rate.
FIRST AUTHOR: Rep. Karickhoff 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 a State Educational Institution (SEI). It requires such an individual
to verify that the individual meets the criteria to receive the resident tuition rate.
Effective Date: July 1, 2025.
Explanation of State Expenditures: State Educational Institution (SEI) Funding: 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 also depends on any changes to the higher
education formula used in the future. [SEIs receive state funding through General Fund appropriations.]
Commission for Higher Education (CHE): The CHE may adopt rules to implement the changes in the bill.
This can be accomplished with existing resources.
Explanation of State Revenues: Tuition Fee Revenue: SEIs could experience changes in enrollment which
could impact tuition fee revenue. The 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 difference in resident and nonresident tuition and
fee rates for full-time students for the 2024-2025 academic year ranged from approximately $2,400 (Ivy
Tech) to $30,000 (IU Bloomington) depending on the SEI.
Additional Information: The Higher Ed Immigration Portal reports 4,809 undocumented students in higher
education in Indiana, this estimate includes students in private and public institutions. They also report an
estimated 1,645 Deferred Action for Childhood Arrivals (DACA) eligible students in higher education, and
2,000 additional undocumented students graduating high school annually. Additionally, the Migration Policy
Institute reports that, as of June 2024, there are 7,600 active recipients of DACA statewide, out of 12,000
potentially eligible individuals. Undocumented students are not eligible for federal student aid such as Pell
HB 1222 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 $10,000.
A decrease in the cost of enrollment is likely to produce an increase in enrollment among eligible students.
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 other factors including 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:
Higher Ed Immigration Portal: https://www.higheredimmigrationportal.org/state/indiana/
Migration Policy Institute:
https://www.migrationpolicy.org/programs/data-hub/deferred-action-childhood-arrivals-daca-profiles
State Educational Institutions, online posted tuition and fees.
Fiscal Analyst: Allison Leeuw, 317-234-9465.
HB 1222 2