122nd MAINE LEGISLATURE
LD 57 LR 0475(01)
An Act To Provide Free Tuition to Students Achieving Learning Results Standards
Fiscal Note for Original Bill
Sponsor: Rep. Fischer of Presque Isle
Committee: Education and Cultural Affairs
Fiscal Note Required: Yes
   
             
Fiscal Note
Projections Projections
2005-06 2006-07 2007-08 2008-09
Net Cost (Savings)
General Fund $105,200 $20,000 $20,000 $20,000
Appropriations/Allocations
General Fund $105,200 $20,000 $20,000 $20,000
Fiscal Detail and Notes
The Finance Authority of Maine will require General Fund appropriations of $105,200 in fiscal year 2005-06 and $20,000 in fiscal year 2006-07.  The costs in fiscal year 2005-06 include $85,200 in one-time expenses related to establishing the program, rulemaking, preparation of notices and related mailings and programming costs.  The Authority estimates the on-going costs associated with administering the program to be $20,000 per year beginning in fiscal year 2005-06.
Although the actual revenue loss to the postsecondary educational institutions as a result of the tuition waiver can not be determined at this time, the following estimates are based on the assumption that this legislation was in effect for the 2004-2005 school year.  The ability of each of these higher education institutions to absorb these costs without additional General Fund appropriations, increasing tuitions and/or fees for other students, or impacting other existing programs and services can not be determined at this time.
The estimated loss of revenue to Maine Maritime Academy would have been approximately $1,043,000, based on the following assumptions: 175 of the 264 first year students (66%) were Maine residents;  all 175 students satisfied the criteria to be eligible for the tuition waiver; and the in-state tuition cost was $5,960 for the school year.
The revenue loss to the University of Maine System would have been approximately $14,835,380 based on the following assumptions: 3,240 full-time and 355 part-time first year students enrolled at the 7 campuses systemwide in the fall of 2004 were Maine residents;  all of these students were deemed eligible for the tuition waiver; they registered for courses totaling approximately 47,713 credit hours, and the cost per credit hour ranged from $132 to $170 depending on what campus the student was enrolled at.
The revenue loss to the Maine Community College System is projected to be $6,126,000 based on the following assumptions: 2,730 first year students enrolled at the Maine Community College System;  all students satisfied the eligibility criteria for the tuition waiver; each of these students would earn approximately 33 credits during their first year and the in-state tuition cost was $66 per credit hour.