SB 380 — AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE TASK FORCE TO SUPPORT PROMISE PROGRAMS IN THE STATE.

GF - Cost At least At least 69.3 38.7 million million Constituent Units of Higher OF – Potential See Below See Below Education Revenue Gain State Comptroller - Fringe GF - Cost 155,340 155,340 Benefits1 Note:

GF=General Fund Municipal Impact:

None Explanation The bill results in costs to the Office of Higher Education of at least $38.7 million in FY 27 and at least $69.3 million in FY 28, with higher costs in the out years.

The bill requires the Office of Higher Education to:

(1) establish a Scholar Success Grant Program to support qualifying Connecticut high school graduates with the cost of higher education;

(2) provide a grant to existing Promise programs in the state;

and (3) establish eight new Promise programs throughout the state.

Below is a further discussion of the cost of the three new initiatives.

1The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

The estimated active employee fringe benefit cost associated with most personnel changes is 41.82% of payroll in FY 27.

2Promise programs provide financial, academic, and other support to undergraduate college students, and high school students who wish to attend college, who meet certain criteria.

The programs can be funded via public or private funding and typically serve students from low-income areas.

There are currently four Promise programs in Connecticut in Bridgeport, Hartford, New Haven, and Waterbury.

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358 Scholar Success Grant Program The bill results in a cost of at least $31.1 million in FY 27 and at least $62.2 million in FY 28 to establish the Scholar Success Grant Program in Section 2.

The cost annualizes to at least $124.5 million beginning in FY 30.

Costs rise from FY 27 to FY 30 due to the program's phase-in as it adds its first four cohorts.

The program is intended to cover, for Connecticut high school graduates anywhere in the state who meet certain requirements, a portion of the net cost of attendance (cost after all grant and scholarship aid) at public and private institutions of higher education in the state.

The portion covered by the bill varies based on income and type of institution (i.e., public or private), with the highest portion (40%) covered for low-income students at public institutions.

Costs will likely be higher than reported above based on changes in the net cost of attendance at public and private institutions, and on program demand.

The bill appropriates $30 million in FY 27 for the Scholar Success Grant Program.

New and Existing Promise Programs The bill results in a cost of at least $7.7 million in FY 27 and at least $7.2 million in FY 28 and annually thereafter related to new and existing Promise programs.

It requires OHE to:

(1) establish a grant of $3,000 per student for existing Promise programs annually beginning in FY 27;

(2) support the creation of eight new Promise programs in the state by January 1, 2031 as required by Section 1.

There is a cost of at least $6.7 million annually beginning in FY 27 to provide a grant of $3,000 per student for existing Promise programs.

This analysis was conducted with information provided by the Connecticut Conference of Independent Colleges and with data obtained from the federal Integrated Postsecondary Education Data System (IPEDS).

The IPEDS data is from the 2022-23 academic year.

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358 Currently, there are 2,232 students participating in the Hartford and WaterburyPromiseprogramsalone.Itisnotknownhowmany students participate in the Bridgeport or New Haven programs.

There is a one-time consultant cost of approximately $500,000 in FY 27.

The bill requires OHE to hire a consultant to support the creation of the eight new Promise programs in Section 1.

Additionally, it is anticipated that OHE will need to hire four staff, resulting in costs of $526,700 annually beginning in FY 27.

These costs assume OHE would need to hire one fiscal/administrative supervisor (salary of $100,500) and three associate fiscal/administrative officers (salary of $90,300 each), resulting in total salary costs of $371,400 and fringe benefit costs of $155,300.

It is expected that these staff would be needed to support all three of the bill's initiatives.

The bill also requires OHE to provide funding for the start-up expenses of the new Promise programs.

This results in a cost dependent on the level of support determined by the OHE commissioner, with the timing dependent on when the new programs begin.

The bill appropriates $4.8 million in FY 27 for grants to new and existing Promise programs.

Revenue Impact on Constituent Units of Higher Education The bill results in a potential revenue gain annually beginning in FY to UConn and the Connecticut State Universities (CSUs).

To the extent that thebillincreasesenrollment at thoseinstitutions,UConn and the CSUs would incur an increase in tuition and fee revenue (and potentially room and board revenue) that would vary based on the number of people who choose to attend, and the tuition and fees charged by the institutions.

The Out Years The bill's total estimated costs in the out years are at least $100.6 million in FY 29 and at least $131.7 million annually thereafter.

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358 Ofthistotal,theestimatedcostoftheScholarsSuccessGrantProgram is $83.3 million in FY 29 and $124.5 million annually thereafter.

The annualizedongoing fiscalimpact oftheScholarsSuccess Grant Program would continue beyond FY 30 subject to changes in the net cost of attendance at public and private higher education institutions, and demand for the Scholar Success Grant Program.

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358 OLR Bill Analysis sSB 380 AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE TASK FORCE TO SUPPORT PROMISE PROGRAMS IN THE STATE.

SUMMARY This bill requires the Office of Higher Education (OHE) to (1) give annual grants to each promise program in the state that was established during or prior to the previous fiscal year, beginning by September 1, 2026, and (2) create a program to support establishing new promise programs, which must prioritize alliance districts, with a goal of establishing eight new promise programs inthe state by January 1,2031.

Under the bill, “promise programs” are scholarship programs that give recipients postsecondary scholarships and associated services, such as mentoring, peer support, and internships.

Additionally, the bill requires OHE to establish the Scholar Success Grant program beginning for the Fall 2026 semester.

The program must award postsecondary scholarship grants to qualifying students in an amount that covers a percentage of the net cost of attendance at in-state higher educationinstitutions.Under thebill,thegrant amount astudent receives depends on (1) the student’s household income bracket and (2) whether the institution is public or independent.

The bill also appropriates to OHE $4,800,000 for promise program grants and $30,000,000 for the Scholar Success Grant program from the General Fund for FY 27.

EFFECTIVE DATE:

July 1, 2026 PROMISE PROGRAMS The bill requires OHE to (1) give grants to existing promise programs and (2) create a program to support the establishment of new promise sSB380 / File No.

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358 programs.

Existing Promise Programs Grants The bill requires OHE to give annual grants equal to $3,000 per enrolled student to each promise program in the state that was established during or prior to the previous fiscal year, beginning by September 1, 2026.

Additionally, beginning by July 1, 2027, each promise program that receives a grant must report annually to OHE on scholarship recipient outcomes, including information on graduation rates, postsecondary program enrollment, and job placements.

OHE Program to Create New Promise Programs The bill requires OHE to establish a program to support the creation of new promise programs throughout the state.

The program must prioritize programs serving students in alliance districts (see BACKGROUND)andmaintain agoalofestablishing eight newpromise programs by January 1, 2031.

Through the program, OHE must:

1.

coordinate with municipalities and regional coalitions;

2.

support each new promise program with funding for start-up expenses (in an amount designated by the commissioner);

3.

provide each new promise program with start-up technical assistance,includingonstrategiesrelatedtofunding,stakeholder engagement, program design, evaluation, and sustainability;

4.

hire a consultant with expertise in developing and operating promise programs;

and 5.

annually submit to the General Assembly a progress report from the consultant until January 1, 2031, or until eight new promise programs are established, whichever is first.

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358 SCHOLAR SUCCESS GRANT The bill requires OHE to establish the Scholar Success Grant program beginning with the Fall 2026 semester.

Under the program, OHE must award grants in an amount that covers a percentage of the net cost of attendance, with the amount depending on (1) the student’s household income bracket and (2) whether the institution is public or independent.

Under the bill, the “net cost of attendance” equals the rate of tuition and fees established by the higher education institution for the 2026-2027 academic year minus an average amount of financial aid received by a student in that student’s income bracket.

Under the bill, OHE must issue each Scholar Success Grant directly to the higher education institution where the qualifying student is enrolled.

Additionally, OHE must annually report on the program to the Higher Education and Employment Advancement Committee beginning by January 1, 2026.

The report must include the (1) number of students that received grants, (2) recipients’ household income brackets, and (3) amount of grants received by each higher education institution.

Student Eligibility Qualifications To qualify for a grant under the program, a student must:

1.

be a Connecticut resident, 2.

have attended a public or private high school in the state for all four years and graduated from it with a cumulative attendance rate of at least 90%, 3.

enroll full-time at a higher education institution in a bachelor degree program not more than one year after graduating high school, and 4.

make satisfactory academic progress and maintain good academic standing while enrolled at the institution.

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358 Additionally, qualifying students must have completed the Free Application for Federal Student Aid (FAFSA) and have accepted all available financial aid, including scholarships, grants, and federal, state, and institutional aid (“financial aid” does not include federal, state, or private student loans).

Under the bill, qualifying students can receive grants (1) for up to six consecutive years or (2) until they graduate, whichever comes first.

Requirements for Higher Education Institutions Under the bill, higher education institutions that enroll students who receive a grant under this program must provide these students with:

1.

a first-year experience program that supports the student’s transition from high school to higher education through specialized academic support, peer mentorship, orientation, and connection to campus resources;

2.

a financial literacy program during the spring or summer before the student enrolls;

3.

a transparent, easily understandable multi-year financial aid award letter;

and 4.

an advisor to help make financial, academic, and career decisions.

Award Amounts The following tables shows the percentage of the net cost of attendance covered under the grant based on the qualifying student’s household income if the student attends a public (Table 1) or independent (Table 2) higher education institution.

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358 Table :

Scholar Success Grant Amounts for Public Higher Education Institutions Household Income of Qualifying StudenPercentage of the Net Cost of Attendance Covered Under the Grant $30,000 or less 40% Above $30,000 and up to $48,000 36% Above $48,000 and up to $75,000 32% Above $75,000 and up to $110,000 28% Above $110,000 24% Table :

Scholar Success Grant Amounts for Independent Higher Education Institutions Household Income of Qualifying Percentage of the Net Cost of Student Attendance Covered Under the Grant $30,000 or less 20% Above $30,000 and up to $48,000 16% Above $48,000 and up to $75,000 12% Above $75,000 8% BACKGROUND Alliance Districts By law, the education commissioner has designated 36 alliance districts for five years, beginning with FY 23.

The current designation applies to (1) the 33 school districts with the lowest accountability index scores and (2) three previously designated districts that were no longer among the 33 with the lowest scores.

The index is based on several student-centered measures, including statewide assessment results and high school graduation rates, among others.

COMMITTEE ACTION Higher Education and Employment Advancement Committee Joint Favorable Substitute Yea 18 Nay 0 sSB380 / File No.

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