COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:3219H.01I Bill No.:HB 1832 Subject:Education, Higher; Department of Higher Education and Workforce Development; Veterans; Military Affairs Type:Original Date:January 5, 2024Bill Summary:This proposal clarifies that military personnel are eligible for in-state tuition for undergraduate and graduate degree programs. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net Effect on General Revenue $0$0$0 ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027College & University*$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) Total Estimated Net Effect on Other State Funds$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) *Oversight assumes any reduction in tuition and fees received by colleges and universities would not reach the $250,000 threshold annually. Numbers within parentheses: () indicate costs or losses. L.R. No. 3219H.01I Bill No. HB 1832 Page 2 of January 5, 2024 HWC:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net Effect on All Federal Funds $0$0$0 ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net Effect on FTE 000 ☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Local Government$0$0$0 L.R. No. 3219H.01I Bill No. HB 1832 Page 3 of January 5, 2024 HWC:LR:OD FISCAL ANALYSIS ASSUMPTION §§41.890 and 173.1153 – Military personnel eligible for in-state tuition Officials from Northwest Missouri State University (NWMSU) assume the proposal will have no fiscal impact to their organization unless the State does not reimburse for tuition and fees (e.g. Returning Heroes Program). Officials from the University of Central Missouri (UCM) assume the proposal will have no fiscal impact on their organization as UCM already provides in-state rates for all services members, veterans, and their dependents for undergraduate and graduate programs. Officials from the Department of Higher Education and Workforce Development, the Missouri National Guard and the University of Missouri System each assume the proposal will have no fiscal impact on their respective organizations. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these agencies. Due to the limited number of responses received from colleges and universities, Oversight assumes Colleges and Universities may experience a reduction in tuition and fees received from military personnel and relatives and will reflect a potential ($0 or) negative unknown fiscal impact for College and University Funds. Oversight has no information on the number of military personnel or their family members that take advantage of this benefit, or if any of them are paying out of state tuition for undergraduate or graduate degree programs. Oversight assumes this proposal clarifies that the benefit applies to both undergraduate and graduate degree programs. For fiscal note purposes, Oversight assumes if some colleges are not applying the benefit to both, there could be a reduction in tuition revenue to colleges and universities with the passage of this proposal; however, Oversight assumes any decrease in tuition and fees would not reach the $250,000 threshold per year. L.R. No. 3219H.01I Bill No. HB 1832 Page 4 of January 5, 2024 HWC:LR:OD FISCAL IMPACT – State GovernmentFY 2025 (10 Mo.) FY 2026FY 2027COLLEGES & UNIVERSITY FUNDS Loss – Colleges and Universities - reduction in tuition and fees received by colleges and universities (§§41.890 and 173.1153) p. 3 $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) ESTIMATED NET EFFECT ON COLLEGES & UNIVERSITY FUNDS $0 or (Unknown) $0 or (Unknown) $0 or (Unknown) FISCAL IMPACT – Local GovernmentFY 2025 (10 Mo.) FY 2026FY 2027$0$0$0 FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION This bill clarifies that specified military service personnel, their spouses, and their unemancipated children under 24, individuals serving in the Missouri National Guard, and any individuals serving in a reserve component of the Armed Forces of the United States, be considered Missouri residents for the purposes of any undergraduate or graduate degree program in Missouri institutions of higher education. This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. L.R. No. 3219H.01I Bill No. HB 1832 Page 5 of January 5, 2024 HWC:LR:OD SOURCES OF INFORMATION Department of Higher Education and Workforce Development Missouri National Guard University of Missouri System Northwest Missouri State University University of Central Missouri Julie MorffRoss StropeDirectorAssistant DirectorJanuary 5, 2024January 5, 2024