COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:1191S.01I Bill No.:SB 11 Subject:Department of Higher Education and Workforce Development; Higher Education Type:Original Date:January 21, 2025Bill Summary:This proposal repeals 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. 1191S.01I Bill No. SB 11 Page 2 of January 21, 2025 GS:LR:OD 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. 1191S.01I Bill No. SB 11 Page 3 of January 21, 2025 GS:LR:OD 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 for this agency. 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 Southeast Missouri State University positive impact on Southeast Missouri State University. Officials from the University of Central Missouri (UCM) assume the proposal will have no fiscal impact on their organization. In response to similar legislation, SB 479 (2024), officials from the Northwest Missouri State University assumed the proposal would have no fiscal impact on their organization 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. 1191S.01I Bill No. SB 11 Page 4 of January 21, 2025 GS:LR:OD 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 act repeals the following provisions of law: (1) That the University of Missouri shall be 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); (2) That 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 such institution (Section 173.005); and (3) That 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 University of Missouri being the degree-granting institution, unless the University of Missouri declines to collaborate with such 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. L.R. No. 1191S.01I Bill No. SB 11 Page 5 of January 21, 2025 GS:LR:OD 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 DirectorJanuary 21, 2025January 21, 2025