122nd MAINE LEGISLATURE
		LD 186		LR 0471(01)
	An Act To Provide Certain Students with Full Tuition for State Institutions of Higher Learning
	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		$20,200	$5,000	$5,000	$5,000
Appropriations/Allocations
	General Fund		$20,200	$5,000	$5,000	$5,000
Fiscal Detail and Notes
	The Finance Authority of Maine will require General Fund appropriations of $20,200 in fiscal year 2005-06 and $5,000 in fiscal year 2006-07.  The costs in fiscal year 2005-06 include $15,200 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 $5,000 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 provided based on current tuition rates.  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 University of Maine System estimates the first year cost to be between $23,760 and $30,600 assuming that 6 students were eligible for the program and depending on which campus the student attends.  By the fourth year of the program, the cost is estimated to be between $95,000 and $122,400 annually.  Maine Maritime Academy estimates the cost would be approximately $23,840 per student over the course of a typical 4-year undergraduate program.  The Maine Community College System estimates the cost would range between $12,000 and $36,000 per year.