Page 1 of 2 LRC 2025-BR174-SB253
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2025 REGULAR SESSION
MEASURE
2025 BR NUMBER 174 SENATE BILL NUMBER 253
TITLE AN ACT relating to scholarships.
SPONSOR Senator Jimmy Higdon
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT(S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE STATE
EMPLOYEE HEALTH PLAN IMPACT
APPROPRIATION UNIT(S) IMPACTED: Kentucky Higher Education Assistance Authority (KHEAA)
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED KHEAA-Teacher
Scholarship Fund
FISCAL ESTIMATES 2024-2025 2025-2026 ANNUAL IMPACT AT FULL
IMPLEMENTATION
REVENUES ($225,000) ($225,000)
EXPENDITURES $5,356,000 $7,004,000
NET EFFECT ($5,581,000) ($7,229,000)
( ) indicates a decrease/negative
PURPOSE OF MEASURE: This bill revises the teacher scholarship program by eliminating
the teaching service requirement as well as the repayment provisions. The maximum scholarship
award would be capped at the highest in-state tuition rate for a teacher preparation program at a
Kentucky public university. Additionally, the dual credit scholarship program would expand
eligibility to high school freshmen and sophomores, allowing students to take two career and
technical dual credit courses per year and two general education dual credit courses in grades 11
and 12. Students in a teacher and learning career pathway could take up to 20 dual credit courses.
The bill also repeals the Teacher Recruitment Student Loan Forgiveness Pilot Program, effective
June 30, 2026. After that date, any funds allocated to this program will instead be distributed
through the teacher scholarship program.
FISCAL EXPLANATION: This measure is estimated to cost approximately $5,581,000 in FY
2025-2026 and $7,229,000 at full implementation in FY 2028-2029. Eliminating repayment
provisions for the teacher scholarship program will reduce KHEAA’s Restricted Funds by about
$225,000 per year, based on current receipts. Expanding the dual credit scholarship to allow
students in a teaching and learning career pathway to take up to 20 dual credit courses is Page 2 of 2 LRC 2025-BR174-SB253
expected to cost $5,356,000 in FY 2025-2026, gradually increasing to $7,004,000 by full
implementation in FY 2028-2029.
For informational purposes, KHEAA estimates that fully funding the teacher scholarship
program for all eligible students would cost $135,924,000 each fiscal year.
DATA SOURCE(S): KHEAA, LRC Staff
PREPARER: Justin Smith NOTE NUMBER: 76 REVIEW: JMR DATE: 2/27/2025