A3836 —

A3836 1R FISCAL ESTIMATE   LEGISLATIVE FISCAL ESTIMATE [First Reprint] ASSEMBLY, No.

3836 STATE OF NEW JERSEY 218th LEGISLATURE   DATED:INTRODUCED APRIL 12, 2018     Sponsored by:

DECEMBERAssemblyman  16,REED  GUSCIORA  District SUMMARY15  (Hunterdon Synopsis:and Mercer) Assemblyman  GARY S.

“HigherSCHAER EducationDistrict Citizenship36 Equality(Bergen Act”;and Passaic) Assemblyman  RAJ MUKHERJI District 33 (Hudson) Assemblywoman  MILA M.

JASEY District 27 (Essex and Morris)   Co-Sponsored by:

Assemblywoman McKnight         SYNOPSIS      “Higher Education Citizenship Equality Act”;

Type  ofCURRENT Impact:VERSION OF TEXT      As reported by the Assembly Higher Education Committee on December 5, 2019, with amendments.

Annual   ExpenditureAn IncreaseAct inconcerning Generalhigher Fund;education and supplementing chapter and chapter 71B of Title 18A of the New Jersey Statutes.

Indeterminate  Revenue     ChangeBe forIt PublicEnacted Institutionsby the Senate and General Assembly of Higherthe EducationState Agenciesof Affected:New Jersey:

Higher       1.    This act shall be known and may be cited as the “Higher Education StudentCitizenship AssistanceEquality Authority;Act.”        2.    a.     A dependent student shall be considered domiciled in this State for the purposes of determining eligibility for a State student 1[loan,]1 grant 1[,]1 or scholarship if the student meets the following criteria:

Office     of(1)   the Secretarystudent ofis Highera Education;United States citizen 1or an eligible noncitizen, as determined under 20 U.S.C.

Publics.10911 Institutions; of Higher Education     Office of Legislative Services Estimate Fiscal Impact Year 1  Year 2  Year 3    State Cost Increase Indeterminate     Public Institutions of                                          Indeterminate Impact Higher Education             ·         The Office of Legislative Services (OLS) estimates that the bill may lead to an indeterminate annual increase in State expenditures by increasing the number of students who are able to establish domicile in the State for the purpose of receiving a State student grant or scholarship.  However, the OLS cannot estimate the number of students who are unable to establish domicile under the current procedures used by the Higher Education Student Assistance Authority (HESAA), but would be able to do so under the legislation.

      ·        (2)   Thethe OLSstudent is1[has] notand able to determine the bill’sstudent’s netparent effecthave1 onresided revenue collected by public institutions of higher education in the State. State Onfor the one hand, the institutions would experience a reductionperiod inof revenue because some students who are required to pay the higher out-of-State tuition would become eligible to pay in-State tuition.  However, individuals who may have chosen to not enrollless inthan an12 institutionconsecutive ofmonths higherimmediately educationprior because of cost considerations may be motivated to dothe soacademic whenperiod presentedfor withwhich a lower tuition rate and the availability of State tuitionstudent assistance programs, leading the institutions to receive revenue that they would not have otherwise received.  It is notbeing clearrequested; which impact would have the greater effect on the institutions’ revenue.

 and BILL     DESCRIPTION(3)    the      student’s Thisparent billor guardian provides thatthe aHigher dependentEducation studentStudent willAssistance beAuthority considered1, domiciledupon inrequest,1 with documentation 1[that the Stateparent or guardian has filed a New Jersey and federal income tax return, or with evidence of withholding of income tax, for the purposesmost ofrecent determiningtax year] to verify income and assets1.       b.    1[A dependent student shall not be denied eligibility for a State student grantloan, grant, or scholarship ifsolely on the studentbasis meetsthat the followingstudent’s criteria:parent or guardian cannot establish domicile.

1)     thec.]1 studentAny isprocedures aand Unitedforms Statesestablished citizenby orthe anHigher eligibleEducation noncitizen; Student 2)Assistance theAuthority student and the student’sSecretary parentof haveHigher residedEducation infor the Statepurposes forof nothis lesssection thanshall 12not consecutivediscriminate monthsagainst immediatelyeligible priorstudents tobased on the academicimmigration periodstatus foror whichnational Stateorigin of the student assistanceor isthe beingstudent’s requested;parent or guardian.

and     3)1[d.] c.1     Nothing in this section shall be construed to affect the student’seligibility parentfor a State student 1[loan,]1 grant 1[,]1 or guardianscholarship providesof HESAA,any uponstudent request,who withdoes documentationnot tomeet verifythe incomerequirements andof assets.this section but is otherwise eligible for State student assistance in accordance with law or regulation.

       The     bill3.    alsoa.   providesA that a dependent student willshall be considered domiciled in thethis State for the purposes of determining eligibility for the resident undergraduate tuition rate at a public institution of higher education if the student:student meets the following criteria:

1)     (1)   the student is a United States citizen;

and 2)     (2)   the student has resided in the State for noa period of not less than 12 consecutive months before first enrolling in thea public institution of higher education and, in the case of a county college,college student, resides in the county sponsoring the college before first enrolling at the college.

      FISCALb.    ANALYSISA  dependent EXECUTIVEstudent BRANCHmay  not      establish Noneeligibility received.for the  resident undergraduate tuition rate pursuant to subsection a.

  OFFICE OF LEGISLATIVE SERVICES         The OLS estimates that the legislation may lead to an indeterminate increase in State expenditures by allowing more students to receive some form of Statethis studentsection assistance. if Under current regulations, a student is presumed to be domiciled in the samestudent’s State as the parent or1or guardian. guardian1 If the parent has not establishedlived domicile, then the student is presumed to be in thethis State temporarily for thea purposeperiod of obtainingat anleast education12 andconsecutive ismonths notimmediately eligibleprior forto State student assistance or in-State tuition.  A student may rebut this presumption by providing additional documentation.  The final decision-making authority rests with HESAA, in the casestudent’s ofinitial Stateenrollment student assistance, and the individual institutions, in thea casepublic institution of tuition.higher education.

          Thec.     legislationNothing potentiallyin increasesthis thesection numbershall ofbe studentsconstrued whoto wouldaffect bethe eligibleeligibility for Statethe studentresident assistanceundergraduate and in-State tuition byrate easingof theany process for a student towho establishdoes domicile. not Undermeet currentthe regulations,requirements HESAA or a public institution of higherthis education,section asbut applicable,is mayotherwise requesteligible multiple forms of documentation from a student for that student to establish domicile, and retains the authorityresident toundergraduate maketuition therate finalat determination.  Under the bill, a studentpublic mayinstitution establishof domicilehigher byeducation submittingin lessaccordance documentation than what may currently be required, and will only have to provide HESAA with documentationlaw toor verifyregulation. income and assets upon the authority’s request.

It  is     plausible4.    thatThis someact studentsshall aretake unableeffect toimmediately satisfyand theshall currentfirst requirementsbe applicable to establishthe domicile,determination butof wouldState bestudent ableassistance toand doeligibility sofor underthe resident undergraduate tuition rate for the bill.1[2018-2019] 2020-20211 academic year.

      The increase in the number of students who would be eligible for State student assistance may lead to an indeterminate increase in State expenditures.  However, the OLS is not able to estimate the number of students who are currently unable to establish domicile in the State, but would be able to do so under the bill.  The OLS notes that the impact on State expenditure is likely to be marginal.  Under the Tuition Aid Grant (TAG) program, the largest student assistance program administered in the State, HESAA determines the maximum amount that may be awarded to a student based on the amount appropriated for the program.  Increasing the number of students who are eligible for student assistance would not necessarily lead to an increased appropriation to the TAG program.  However, in the absence of an additional appropriation, the average TAG award per student would decline.  Any additional expenditure due to other State student assistance programs is also likely to be marginal, as these programs generally have other eligibility requirements that would mitigate the fiscal impact of this bill.

      The bill would result in an indeterminate impact in revenue for the public institutions of higher education.  On the one hand, institutions may experience a decrease in revenue, as students who once paid the higher out-of-State tuition amount begin to pay the lower in-State tuition rate.  On the other hand, the combination of lower tuition costs and the availability of State tuition assistance may lead to enrollment increases among students who otherwise would not enroll.  The OLS does not have information to determine which of these two effects would be larger.

    Section:

Education Analyst:

Adrian Crook  Lead Research Analyst Approved:

Frank W.

Haines III Legislative Budget and Finance Officer     This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

    This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).