NOTE: As provided in LFC policy, this report is
intended only for use by the standing finance committees of the
legislature. The Legislative Finance Committee does not assume
responsibility for the accuracy of the information in this report when used for
other purposes.
The most recent FIR
version (in HTML & Adobe PDF formats) is available on the Legislative
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|
SPONSOR: |
Salazar |
DATE TYPED: |
|
HB |
81/aHEC/aSFC |
||
|
SHORT TITLE: |
Expand Lottery Scholarship Institutions |
SB |
|
||||
|
|
ANALYST: |
Williams |
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APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
|
|
|
$86.4
- $350.0 *See Text; excludes Crownpoint Institute of Technology |
Recurring |
Lottery
Tuition Scholarship |
|
|
|
|
|
|
|
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to HB 32, HB 125, HB 171a, HB 807, HB
885, SB 27, SB 77, SB 217, SB 373, SB 377
Commission
on Higher Education (CHE)
Office
of Indian Affairs (OIA)
SUMMARY
Synopsis
of SFC Amendment
The Senate Finance Committee amendment removes
House Education Amendments 1, 2 and 5; only a technical change and
identification of the Institute of American Indian and Alaska native culture
and arts development as a four-year post-secondary educational institution
remain from the House Education Committee amendments.
Further, the Senate Finance Committee amendment
clarifies eligibility for lottery tuition scholarships for students at two-year
institutions who then transfer to four-year institutions.
The Senate Finance Committee amendment directs
CHE to enter into cooperative agreements with the Crownpoint Institute of
Technology, Dine College and the Institute of American Indian and Alaska native
culture and arts development to set tuition scholarship awards at amounts equal
to the percentage awarded at state four-year or two-year educational
institutions, limited to the highest tuition rate charged by either a four-year
or two-year institution, as appropriate.
This language effectively caps lottery tuition fund claims in the event
of tuition escalation at these institutions.
The Senate Finance Committee amendment
reiterates the HEC amendment that eligibility would include the Crownpoint
Institute of Technology when that institution becomes accredited,
The fiscal impact is not expected to change
significantly from that discussed below.
Synopsis
of HEC Amendment
The House Education Committee amendment
specifies the tribal colleges which would be eligible for lottery success
scholarships. The amendment clarifies
the number of semesters of eligibility for a lottery tuition scholarship at a
total of four years, including attendance at both a two-year and four-year
institution. The amendment reflects
students attending Crownpoint Institute of Technology would be eligible to
receive lottery tuition scholarships upon receipt of accreditation by that
institution.
Synopsis of Original Bill
House Bill 81 expands
eligibility for lottery tuition scholarships to include students attending two-
and four-year educational institutions created by an Indian nation, tribe or
pueblo or federal government.
Significant Issues
Currently, all qualified students enrolled in a
two- or four-year public post-secondary institution may receive a Lottery
Success Scholarship. Other public and
private non-profit institutions such as the
According to CHE, high school students
graduating from a school in
Two- and four-year post secondary institutions
created by an Indian nation, tribe or pueblo or federal government identified
by CHE eligible to participate include the following: Dine College, Institute of American Indian
Arts (IAIA), Southwest Indian Polytechnic Institute (SWIPI) and Crownpoint
Institute of Technology (CIT).
Currently, CIT is not accredited; therefore, it does not receive state
funding.
The OIA notes this legislation would benefit
students whose first choice is a “curriculum tailored to Indian students” and
notes retention and graduation rates for Indian students are much higher at
tribal colleges, than non-tribal colleges.
This is an Indian Affairs Committee-sponsored
bill.
FISCAL IMPLICATIONS
HEC Amendments
Based on data provided
to CHE this year by Dine, IAIA and SWIPI regarding potential eligibility and
annual tuition, the following awards are estimated:
Dine College $40.8
IAIA $45.6
SIPI No tuition
Note: SWIPI does not charge tuition. Books and room and board are also provided free of charge to members of federally recognized Indian tribes.
If CIT is excluded, an
analysis of similar legislation from the 2002 session (HB 252) reflected
potential fiscal impact of $189.0, based on a CHE analysis of financial aid
data, including student enrollment and annual tuition.
At the House Education
Committee hearing, tribal college representatives testified the bill would have
a potential fiscal impact of approximately $350.0.
Upon receipt of
accreditation status from the North Central Association Higher Learning Commission,
the fiscal cost to include CIT could range from $3.0 to $648.0. The potential timing of a decision regarding
the institution’s candidacy is currently not certain.
Original Bill
Based on data provided
to CHE this year by Dine, IAIA, SWIPI and CIT regarding potential eligibility
and annual tuition, the following awards are estimated:
Dine College $40.8
IAIA $45.6
SIPI No tuition
CIT $3.0
Note: SWIPI does not charge tuition. Books and room and board are also provided free of charge to members of federally recognized Indian tribes.
An analysis of similar
legislation from the 2002 session (HB 252) reflected potential fiscal impact of
$837.0 based on a CHE analysis of financial aid data, including student
enrollment and annual tuition.
ADMINISTRATIVE IMPLICATIONS
CHE notes additional
staff time would be required to provide technical support for data reporting
requirements. The institutions would be
required to provide student data, which is not currently reported to CHE.
OTHER SUBSTANTIVE ISSUES
CHE reports that in
academic year 2001-2002, Native American students in
CIT postponed their
candidacy status for accreditation in 2002; however, CHE notes the institution
intends to reapply in 2003.
QUESTIONS