Consolidated Fiscal Note – 2013-14 Session
Bill #: S0723-1E
Fiscal Impact
State
Local
Fee/Departmental Earnings
Tax Revenue
Complete Date: 04/02/13
Chief Author: PAPPAS, SANDRA
Title: UNLWFL IMIGR FIN AID & RESIDENT TUIT
Agencies:
Office of Higher Education (04/02/13)
University Of Minnesota (04/02/13)
Yes
X
X
X
X
State Colleges & Universities (04/02/13)
This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only.
FY13
FY14
FY15
FY16
Dollars (in thousands)
Net Expenditures
No
FY17
General Fund
Office of Higher Education
University Of Minnesota
MN State Colleges/Universities Fund
State Colleges & Universities
639
639
0
2,571
2,571
539
539
0
2,571
2,571
539
539
0
2,571
2,571
539
539
0
2,571
2,571
MN State Colleges/Universities Fund
State Colleges & Universities
2,571
2,571
2,571
2,571
2,571
2,571
2,571
2,571
General Fund
Office of Higher Education
University Of Minnesota
MN State Colleges/Universities Fund
State Colleges & Universities
639
639
0
0
0
639
539
539
0
0
0
539
539
539
0
0
0
539
539
539
0
0
0
539
Revenues
Net Cost <Savings>
Total Cost <Savings> to the State
FY13
Full Time Equivalents
General Fund
Office of Higher Education
Total FTE
FY14
0.50
0.50
0.50
FY15
0.50
0.50
0.50
FY16
0.50
0.50
0.50
FY17
0.50
0.50
0.50
Consolidated EBO Comments
I have reviewed this Fiscal Note for accuracy and content.
EBO Signature: ELIZABETH CONNOR
Date: 04/02/13Phone: 651-201-8041
S0723-1E
Page 1 of 13
Fiscal Note – 2013-14 Session
Bill #: S0723-1E
Fiscal Impact
State
Local
Fee/Departmental Earnings
Tax Revenue
Complete Date: 04/02/13
Chief Author: PAPPAS, SANDRA
Title: UNLWFL IMIGR FIN AID & RESIDENT TUIT
Agency Name:
Yes
X
No
X
X
X
Office of Higher Education
This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only.
FY13
FY14
FY15
FY16
Dollars (in thousands)
Expenditures
FY17
General Fund
689
589
589
589
General Fund
50
50
50
50
General Fund
639
539
539
539
639
639
539
539
539
539
539
539
Less Agency Can Absorb
Net Expenditures
Revenues
-- No Impact --
Net Cost <Savings>
General Fund
Total Cost <Savings> to the State
FY13
Full Time Equivalents
General Fund
S0723-1E
Total FTE
FY14
0.50
0.50
FY15
0.50
0.50
FY16
0.50
0.50
FY17
0.50
0.50
Page 2 of 13
Bill Description
This bill establishes criteria for students to qualify for resident tuition rates at public postsecondary institutions in
Minnesota. The bill states all students, other than nonimmigrant aliens, who meet all three criteria shall qualify for
resident tuition at all Minnesota public postsecondary institutions:
1. High school attendance within the state for three or more years; and
2. Graduation from a state high school or attainment within the state of the equivalent of high school graduation;
and
3. In the case of a student without lawful immigration status, the filing of an affidavit with the institution of higher
education stating that the student has filed an application to legalize the student's immigration status or will file an
application at the earliest opportunity the student is eligible to do so.
The bill states the criteria are in addition to any other statute, rule, or postsecondary institution regulation or policy
regarding eligibility for resident tuition.
The bill also modifies the Resident Student definition for state student aid programs in MS 136A.101, subdivision
8 by adding students who meet the newly established criteria for resident tuition rates at public postsecondary
institutions to the list of conditions under which a student is considered a Resident Student for state student aid
programs. Students who meet one of the Resident Student criteria are eligible to apply for state student aid
programs, including the Minnesota State Grant.
Additionally, the bill authorizes public postsecondary institutions to use private sources of funding to provide
scholarships and other aid to students who meet the newly established criteria for resident tuition rates at public
postsecondary institutions. According to the Minnesota public postsecondary institutions, federal immigration law
prohibits the institutions from providing private scholarships and other private aid to students without a lawful
immigration status. Thus, when donors desire to financially help these students, campuses must refer them to
external organizations.
Assumptions
Due to the limited availability of verifiable information on how many undocumented students are enrolled in
Minnesota postsecondary institutions, it is very difficult to estimate how many additional students would be eligible
to apply for state student aid programs as well as the resulting impact on state student aid spending due to this
bill.
The following assumptions were used to estimate the fiscal impact of this bill:
(1) It is unknown how many individuals currently enrolled in postsecondary institutions in Minnesota would benefit
from this bill. However, in states where similar resident tuition and state student aid laws and policies exist, the
number of students who benefit remains small compared to the overall number of postsecondary students in
those states. For example, both Texas and California enacted similar resident tuition and state student aid laws
and/or policies in 2001. Currently, undocumented immigrant students make up approximately 1% or less of all
students in public higher education institutions in those states.
(2) The 2011 Pew Research Center’s Unauthorized Immigrant Population: National and State Trends report
estimated undocumented immigrants made up 2.1 percent (60,000) of Minnesota’s labor force. In comparison, the
report estimated undocumented immigrants made up 9.7 percent (1.85 million) of the labor force in California and
9.0 percent (1.1 million) of the labor force in Texas.
(3) In 2012, the Maryland Institute for Policy Analysis and Research determined that at any point in time, students
who would benefit from a similar resident tuition law enacted in that state would make up 0.6 percent of all the
students in Maryland public colleges and universities. They determined this by using a ratio of the percent of
undocumented immigrants in the labor forces of those states compared to that of Maryland multiplied by the
percent of undocumented immigrant students enrolled in public postsecondary institutions in Texas and
California.
There is no reason to believe the analysis would be any different in Minnesota. Thus, OHE assumes at any point
in time after this bill is enacted, the number of students enrolled in Minnesota public postsecondary institutions
who will benefit from this bill will be approximately 0.2 percent of all students enrolled in Minnesota public
postsecondary institutions or 548 students using fall 2011 enrollment figures.
S0723-1E
Page 3 of 13
% Undocumented Immigrants in MN Labor Force / % Undocumented Immigrants in CA or TX Labor Force
Multiplied by
1% of undocumented immigrant students enrolled in public postsecondary institutions as in Texas and California
2.1 percent (MN) / 9.7 percent (CA) X 1 percent = .22 percent of all students enrolled in Minnesota public
postsecondary institutions at any point in time will benefit from this bill.
2.1 percent (MN) / 9.0 percent (TX) X 1 percent = .23 percent of all students enrolled in Minnesota public
postsecondary institutions at any point in time will benefit from this bill.
(4) Using fall 2011 enrollment as a base, it can be assumed that at any point in time 751 postsecondary students
in Minnesota will benefit from this bill.
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(5) OHE assumes approximately 666 of the 751 Minnesota postsecondary students who will benefit from this bill
will be enrolled in undergraduate programs. Of those, OHE assumes approximately 50 percent or 333
undergraduates will apply for and qualify for a State Grant.
(6) The average annual State Grant award is estimated to be $1,620 in FY 2013 and the average grant amount
takes into account the distribution of enrollment levels of currently enrolled students.
(7) Any increases in the number of recipients for other state student aid programs would be absorbed within the
appropriations for those programs.
(8) Some undocumented immigrant students who benefit from the U.S. Department of Homeland Security’s
Deferred Action for Childhood Arrivals (DACA) program who enroll in a Minnesota postsecondary institution who
do not qualify for Resident Tuition under this bill would be eligible for state student aid by meeting one of the other
conditions to be considered a Resident Student in statute.
(9) A 2009 report on the impact on postsecondary enrollment of Latinos in states with similar existing resident
tuition and state student aid laws and policies found that Foreign-Born Non-Citizen Latinos were 1.54 percent
S0723-1E
Page 4 of 13
more likely to enroll after the enactment of such laws or policies, compared to the same population in the rest of
the United States (Flores, 2009). Based on these findings, OHE assumes the number of postsecondary students
who would benefit from this bill may increase slightly in future biennia.
Full-time Equivalents
OHE would use existing staff to assist in the development of application forms as well as develop and provide
training to Minnesota postsecondary institutions. Although OHE plans to absorb administrative costs using
existing staff, OHE assumes .5 FTE would be responsible for the administration of the program at the agency
level.
Expenditure and/or Revenue Formula
The average annual State Grant award for FY 2013 of $1,620 is multiplied by the estimated increase in the
number of students who will qualify to receive the State Grant (333) resulting in an increase of State Grant
spending of approximately $539,000 per year and $1.078 million per biennium. Any increases in the number of
recipients for other state student aid programs would be absorbed within the appropriations for those programs.
OHE estimates it will incur up to $100,000 in one-time technology costs in order to implement this bill. OHE
expects it will be necessary to develop its own online application and financial need determination process
separate from the federal (FAFSA) process as students newly eligible to apply for state student aid programs
under this bill will be unable to file a FAFSA with the federal processor. Data elements from the FAFSA and the
resulting federal needs analysis such as the Expected Family Contribution (EFC) and Parental Contribution (PC)
are required by state statute to determine eligibility for state student aid programs. OHE plans to develop a
system to replicate the federal needs analysis, determine eligibility and award state student aid to eligible
students. OHE plans to use its current MN.IT resources as well as contracting for programming services and/or
purchasing software or hardware already developed by states providing state student aid to students who are
unable to complete a FAFSA.
Long-Term Fiscal Considerations
The number of students who apply for state student aid including the State Grant is likely to increase over time
due to the following reasons:
(1) Awareness regarding the expanded eligibility for state student aid under this bill is likely to increase.
(2) Student and family concerns over providing data to a government agency and the trustworthiness of the
system is likely to decrease
(3) The number of potentially eligible Minnesotans who graduate from high school or earn a GED and go on to
attend postsecondary institutions in Minnesota is likely to increase due to the financial access to postsecondary
education provided by this bill.
As a result, the estimated increase in State Grant spending of $539,000 and $1.078 million per biennium may
increase slightly over time.
Local Government Costs
N/A
References/Sources
Maryland Institute for Policy Analysis and Research, University of Maryland
Minnesota Office of Higher Education
Flores, S. M. (December 05, 2009). State Dream Acts: The Effect of In-State Resident Tuition Policies and
Undocumented Latino Students. The Review of Higher Education, 33, 2, 239-283.
I have reviewed the content of this fiscal note and believe it is a reasonable estimate of the expenditures and
revenues associated with this proposed legislation.
Fiscal Note Coordinator Signature:
S0723-1E
Date:
Page 5 of 13
FN Coord Signature: TRICIA GRIMES
Date: 04/01/13 Phone: 651-259-3964
EBO Comments
I have reviewed this Fiscal Note for accuracy and content.
EBO Signature: ELIZABETH CONNOR
Date: 04/02/13 Phone: 651-201-8041
S0723-1E
Page 6 of 13
Fiscal Note – 2013-14 Session
Bill #: S0723-1E
Fiscal Impact
State
Local
Fee/Departmental Earnings
Tax Revenue
Complete Date: 04/02/13
Chief Author: PAPPAS, SANDRA
Title: UNLWFL IMIGR FIN AID & RESIDENT TUIT
Agency Name:
Yes
X
No
X
X
X
University Of Minnesota
This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only.
FY13
FY14
FY15
FY16
Dollars (in thousands)
Expenditures
FY17
General Fund
175
175
175
175
General Fund
175
175
175
175
General Fund
0
0
0
0
0
0
0
0
Less Agency Can Absorb
Net Expenditures
Revenues
-- No Impact --
Net Cost <Savings>
General Fund
Total Cost <Savings> to the State
FY13
Full Time Equivalents
-- No Impact --
S0723-1E
FY14
FY15
FY16
FY17
Total FTE
Page 7 of 13
Bill Description
SF 723 1-E establishes criteria for students, other than nonimmigrant aliens, to qualify for resident tuition rates at
state universities and colleges if the student meets the following requirements:
1. High school attendance within the state for three or more years;
2. Graduation from a state high school or attainment within the state of the equivalent of high school
graduation; and
3. In the case of a student without lawful immigration status, the filing of an affidavit with the institution of
higher education stating that the student has filed an application to legalize the student’s immigration
status or will file the application at the earliest opportunity the student is eligible to do so.
The University of Minnesota is requested to adopt a policy implementing this policy but is not required to do so.
The bill also allows the expansion of private financial aid administered by public postsecondary institutions for use
by these students, and expands the definition of “Resident Student” as it pertains to eligibility for state-funded
public financial aid.
Assumptions
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Page 8 of 13
Expenditure and/or Revenue Formula
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Long-Term Fiscal Considerations
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Local Government Impact
None.
References/Sources
Minnesota Office of Higher Education (college participation rates):
http://www.ohe.state.mn.us/mPg.cfm?pageID=753&1534D83A_1933715A=78a0d08ba66f71bbaef5cb33280350ace3710af3
University of Minnesota Office of Institutional Research (official enrollment statistics, Fall 2011) :
http://www.oir.umn.edu/student/enrollment/term/1119
University of Minnesota tuition rates, AY 2012-13:
http://onestop.umn.edu/finances/costs_and_tuition/tuition_and_fees/index.html
FN Coord Signature: KEEYA STEEL
Date: 04/02/13 Phone: 612-625-5512
EBO Comments
I have reviewed this Fiscal Note for accuracy and content.
S0723-1E
Page 9 of 13
EBO Signature: ELIZABETH CONNOR
Date: 04/02/13 Phone: 651-201-8041
S0723-1E
Page 10 of 13
Fiscal Note – 2013-14 Session
Bill #: S0723-1E
Fiscal Impact
State
Local
Fee/Departmental Earnings
Tax Revenue
Complete Date: 04/02/13
Chief Author: PAPPAS, SANDRA
Title: UNLWFL IMIGR FIN AID & RESIDENT TUIT
Agency Name:
Yes
X
No
X
X
X
State Colleges & Universities
This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only.
FY13
FY14
FY15
FY16
Dollars (in thousands)
Expenditures
FY17
MN State Colleges/Universities Fund
4,072
4,072
4,072
4,072
MN State Colleges/Universities Fund
1,501
1,501
1,501
1,501
MN State Colleges/Universities Fund
2,571
2,571
2,571
2,571
MN State Colleges/Universities Fund
2,571
2,571
2,571
2,571
MN State Colleges/Universities Fund
0
0
0
0
Less Agency Can Absorb
Net Expenditures
Revenues
Net Cost <Savings>
Total Cost <Savings> to the State
FY13
Full Time Equivalents
-- No Impact --
S0723-1E
FY14
FY15
FY16
FY17
Total FTE
Page 11 of 13
Bill Description
SF 723 1-E establishes criteria for students, other than nonimmigrant aliens, to qualify for resident tuition rates at
state universities and colleges if the student meets the following requirements:
-
High school attendance within the state for three or more years;
Graduation from a state high school or attainment within the state of the equivalent of high school
graduation; and
- In the case of a student without lawful immigration status, the filing of an affidavit with the institution of
higher education stating that the student has filed an application to legalize the student’s immigration
status or will file the application at the earliest opportunity the student is eligible to do so.
The University of Minnesota is requested to adopt a policy implementing this policy but is not required to do so.
The bill also allows the expansion of private financial aid administered by public postsecondary institutions for use
by these students, and expands the definition of “Resident Student” as it pertains to eligibility for state-funded
public financial aid.
Assumptions
1. Based on the Office of Higher Education (OHE) estimates, 751 students would benefit from this bill.
Minnesota State Colleges and Universities staff would be required to verify the eligibility status of
students qualifying for resident tuition rates under this bill.
2. According to OHE’s enrollment estimates, 299 of the 751 students are projected to attend MnSCU
community and technical colleges, 120 are projected to attend MnSCU state universities as
undergraduate students and 12 are projected to attend MnSCU state universities as graduate students.
This fiscal note assumes that if not for this bill these students would not otherwise attend a MnSCU
institution.
3. Students attending MnSCU institutions would pay resident tuition rates. Currently, 7 of 31 state colleges
and five of seven state universities charge a different rate for resident and non-resident/non-reciprocity
(NR/NR) students.
4. Based on FY 2013 board-approved tuition and fee charges for resident students:
• Students attending a MnSCU college would pay approximately $5,355 per year in tuition and fees
(based on 30 credits per year);
• Students attending a MnSCU university as undergraduates would pay $7,340 per year in tuition
and fees (based on 30 credits per year);
• Students attending a MnSCU college would pay $7,388 per year in tuition and fees (based on 20
credits per year).
5. The average cost of educating a MnSCU student is estimated at $9,448 based on FY 2012 financial
statements (general fund operating expenditures).
6. It is possible that students who qualify as residents under this bill may already be enrolled in MnSCU
institutions; however, there is no way to determine how many students that would include.
7. Assuming the enrollment patterns of the 431 students who are projected to enroll in MnSCU institutions
as a result of this bill reflect the enrollment patterns of the current MnSCU student population, enrollment
at state colleges would increase by an average of 10 students and enrollment at state universities would
increase by an average of 19 students. This small increase in enrollment (0.3%) could be absorbed by
colleges and universities without adding measurably to costs.
Expenditure and/or Revenue Formula
S0723-1E
Page 12 of 13
Tuition and Fee Revenue:
299 College Students x $5,355 Tuition and Fees =
120 University Undergraduate Students x $7,340 Tuition and Fees =
12 University Graduate Students x $7,388 Tuition and Fees =
Total Tuition and Fee Revenue Generated =
$1,601,145
$ 880,800
$ 88,656
$2,570,601
Cost of Education Expenditures:
431 students x $9,448 per FYE cost per student = $4,072,088
Net Annual Cost: $1,501,487 (to be absorbed by Minnesota State Colleges and Universities)
Long-Term Fiscal Considerations
Revenue and expenses are on-going.
Local Government Impact
None
References/Sources
1) MN Office of Higher Education fiscal note on SF 723 1-E
2) Board Approved FY 2013 tuition and fee rates
3) Minnesota State Colleges and Universities FY 2012 Financial Statements
FN Coord Signature: DEBORAH BEDNARZ
Date: 04/02/13 Phone: 651-201-1710
EBO Comments
I have reviewed this Fiscal Note for accuracy and content.
EBO Signature: ELIZABETH CONNOR
Date: 04/02/13 Phone: 651-201-8041
S0723-1E
Page 13 of 13