COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1473H.01I Bill No.:HB 616 Subject:Higher Education; Department of Higher Education and Workforce Development Type:Original Date:March 25, 2025Bill Summary:This proposal modifies provisions relating to the authority to confer degrees
at public institutions of higher education.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Colleges and
Universities*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
Total Estimated Net
Effect on Other State
Funds$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
*This proposal allows other universities to confer degrees currently conferred only by the
University of Missouri (UM). It is assumed if other universities decide to offer degrees in
programs currently only conferred by UM that the administrative costs could exceed $250,000
annually and that revenue (tuition and fees) would move from one university to another and
would net to $0.
Numbers within parentheses: () indicate costs or losses. L.R. No. 1473H.01I
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total 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 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 1473H.01I
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FISCAL ANALYSIS
ASSUMPTION
§§172.280, 173.005 & 174.160 – Authority to confer degrees at colleges/universities
Officials from the Department of Higher Education and Workforce Development assume the
proposal will have no fiscal impact on their organization. Oversight does not have any
information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note.
Officials from the University of Missouri System (UM) state the fiscal impact on the UM
System is difficult to predict but could be significant. It is reasonable to believe that starting new
PhD programs, professional degrees, and engineering degrees will significantly increase
expenditures at other institutions. These cost increases would require a significant increase in
state funding for these institutions, causing a corresponding loss of state funding to the UM
System and its four universities.
Oversight assumes UM could experience a negative fiscal impact as a result of this proposal
since students could opt to attend another university to obtain their desired degree and that other
universities in Missouri would incur additional administrative expenses starting up/adding new
programs. The administrative expenses may or may not be offset by an increase in enrollment.
Therefore, for fiscal note purposes, Oversight assumes this proposal will have a $0 to unknown
negative fiscal impact on universities.
In addition, the net effect on tuition/fees lost by UM and received by other universities will not
be significantly different. Lastly, Oversight assumes the impact could be greater than $250,000 if
even one university decided to create a new graduate, professional and/or engineering program at
their institution. Oversight will range the impact from $0 to an unknown amount.
Officials from the Southeast Missouri State University assume there is the potential for a likely
positive impact on Southeast Missouri State University.
Officials from the Northwest Missouri State University and the University of Central
Missouri (UCM) both assume the proposal will have no fiscal impact on their organization.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero
impact in the fiscal note.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other universities were requested to respond to this proposed legislation but did not. A
listing of political subdivisions included in the Missouri Legislative Information System
(MOLIS) database is available upon request. L.R. No. 1473H.01I
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028COLLEGES AND UNIVERSITIESCosts – Colleges & Universities
(§§172.280, 173.005 & 174.160) –
increased administrative costs p.3
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
COLLEGES AND UNIVERSITIES
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$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 relates to the authority to confer degrees at public institutions of higher education.
The bill repeals the following provisions:
(1) The University of Missouri is the State’s only public research university and the exclusive
grantor of research doctorates and first-professional degrees, including dentistry, law, medicine,
optometry, pharmacy, and veterinary medicine (Section 172.280, RSMo);
(2) Degrees in podiatry and chiropractic and osteopathic medicine may be conferred only by the
University of Missouri or by a public institution of higher education in collaboration with the
University of Missouri, with the University of Missouri being the degree-granting institution,
unless the University of Missouri declines to collaborate with the institution (Section 173.005);
and
(3) Degrees in engineering may be conferred only by the University of Missouri or by a public
institution of higher education in collaboration with the University of Missouri, with the L.R. No. 1473H.01I
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University of Missouri being the degree-granting institution, unless the University of Missouri
declines to collaborate with the institution (Section 174.160).
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Higher Education and Workforce Development
University of Missouri System
Northwestern Missouri State University
University of Central Missouri
Southeast Missouri State University
Julie MorffJessica HarrisDirectorAssistant DirectorMarch 25, 2025March 25, 2025