Page 1 of 2 LRC 2022-BR274-HB85
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2022 R EGULAR SESSION
MEASURE
2022 BR NUMBER 274 HOUSE BILL NUMBER 85
TITLE AN ACT relating to dual credit scholarships.
SPONSOR Representative Chris Freeland
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT(S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED: Kentucky Higher Education Assistance Authority
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED Dual Credit
Scholarship Fund and Work Ready Scholarship Fund
FISCAL ESTIMATES 2021-2022 2022-2023 2023-2024 ANNUAL IMPACT
AT FULL
IMPLEMENTATION
REVENUES Restricted Funds:
($385,000)
Restricted Funds:
($385,000)
Appropriations will
adjust accordingly
EXPENDITURES General Fund:
$5,000,000
General Fund:
$4,975,000
Appropriations will
adjust accordingly
NET EFFECT ($5,385,000) ($5,360,000)
( ) indicates a decrease/negative
PURPOSE OF MEASURE: This measure modifies the Dual Credit Scholarship Program
administered by the Kentucky Higher Education Assistance Authority (KHEAA) to increase the
dual credit tuition rate ceiling, removes language related to successful course completion,
codifies enacted budget language to expand the Dual Credit Scholarship Program to include the
dual credit component of the Work Ready Kentucky Scholarship program, modifies allowable
courses, makes technical corrections, changes reporting requirements, and modifies statute to
conform.
FISCAL EXPLANATION : This measure will have a significant fiscal impact to the existing
Dual Credit Scholarship Program across multiple fund sources beginning in fiscal year (FY)
2023. Both the Dual Credit Scholarship Program and the dual credit component of the Work
Ready Kentucky Scholarship Program are primarily funded with General Fund lottery revenues.
A summation of the fiscal impacts is provided below.
Dual Credit Tuition Rate Ceiling Modifications
The dual credit tuition rate ceiling is the maximum per credit hour amount that can be charged by
participating institutions for a dual credit course and is the determining factor, in conjunction
with the number of courses, for Dual Credit Scholarship Program awards. House Bill 192 from Page 2 of 2 LRC 2022-BR274-HB85
the 2021 Regular Session, the enacted Executive Branch Budget Bill, suspends existing statute to
increase the dual credit tuition rate ceiling to two-fifths of the per credit hour tuition amount
charged by the Kentucky Community and Technical College System (KCTCS). This measure
will codify within statute an increase to the dual credit tuition rate ceiling to one-half of the per
credit hour tuition amount charged by KCTCS. The differential created by increasing the dual
credit tuition rate ceiling from two-fifths to one-half is anticipated to increase expenditures for
scholarship awards by $3.8 million in FY 2023 and $4 million in FY 2024.
Dual Credit Course Modifications
This measure codifies existing Executive Branch Budget Bill language to the extent that the Dual
Credit Scholarship Program is expanded to be inclusive of the dual credit component of the
Work Ready Kentucky Scholarship Program and sets the maximum number of courses eligible
for the Dual Credit Scholarship Program at ten courses. HB85 changes the combination of
eligible courses from what is currently in the enacted Executive Branch Budget Bill.
Currently, the Dual Credit Scholarship Program provides for two career and technical education
dual credit courses per academic year and two general education dual credit courses over the
junior and senior years, for a maximum of ten dual credit courses. This measure will provide for
two career and technical education dual credit courses per academic year during the freshman
and sophomore years and three general education or career and technical education dual credit
courses, in any combination, per academic year during the junior and senior years, for a
maximum of ten dual credit courses. The difference created by this measure is timing (awards
will come sooner in the junior and senior years), and more general education courses will likely
be covered (from a maximum of two to the potential of six). These changes will not only impact
the administration of the program but also increase participation and the number of scholarships
provided.
The Dual Credit Scholarship Program and the dual credit component of the Work Ready
Kentucky Scholarship Program are anticipated to provide awards to over 38,000 and 12,000
recipients during FY 2023, respectively. Although the maximum award of ten dual credit courses
remains the same, the mix of dual credit courses will change. KHEAA has also stated that their
existing technical programming would have to be significantly modified to track changes related
to additional general education dual credit courses. The fiscal impact of providing additional
general education dual credit courses is anticipated to increase KHEAA’s expenditures by $1.2
million in FY 2023 and $975,000 in FY 2024 for additional scholarship awards and
programming costs.
Successful Completion Modifications
This measure removes the statutory requirement for participating institutions to return 50 percent
of scholarship award funds for unsuccessful completion of dual credit coursework. By removing
this requirement, KHEAA will see decreased revenues from the return of awards. Based on the
average of the last three fiscal years, which includes the impact of a global pandemic, across both
impacted scholarship programs the fiscal impact is anticipated to be a decrease of $385,000 in
revenue.
DATA SOURCE(S): KHEAA
PREPARER: Savannah Wiley NOTE NUMBER: 53 REVIEW: JAB DATE: 2/21/2022