LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 1036

STATE OF NEW JERSEY

213th LEGISLATURE

 

DATED: DECEMBER 11, 2009

 

 

SUMMARY

 

Synopsis:

Allows certain undocumented aliens to qualify for in-state tuition rates at public institutions of higher education.

Type of Impact:

No impact on State revenues or expenditures.

Agencies Affected:

Public institutions of higher education.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 

Year 3 

 

State Cost

No impact

No impact

No impact

 

 

 

 

·        This bill will have no direct impact on State revenues or expenditures as higher education tuition revenues are not a part of State budgeted expenditures.

·        Information on the number of undocumented aliens enrolled in public institutions of higher education is not collected on a Statewide basis.  Consequently, the Office of Legislative Services (OLS) is not able to determine the current numbers of such students who may be enrolled and the potential reduction in tuition revenue if these students were paying in-state rather than out-of-state tuition rates.  While the bill may increase the in-State tuition applicant pool, how the bill’s provisions would affect the institutions’ admission policies and tuition revenue is unknown.

BILL DESCRIPTION

 

      Senate Bill No. 1036 of 2008 allows a student who is also an undocumented alien to pay in-state tuition at the State’s public institutions of higher education if he meets the following criteria:

            (1) attended a high school in the State for three or more years;

            (2) graduated from a high school in this State or received the equivalent of a high school diploma in this State;

            (3) registers as an entering student or is currently enrolled in a public institution of higher education not earlier than the fall semester of the 2008-2009 academic year; and

            (4) files an affidavit with the institution of higher education stating that he has filed an application to legalize his immigration status or will file an application as soon as he is eligible to do so.

      The bill’s provisions do not apply to persons defined as “nonimmigrant aliens” within the meaning of section 101 (a)(15) of the federal “Immigration and Nationality Act.”  In very general terms, a “nonimmigrant alien” is a person who has been admitted to the United States on a temporary basis for employment, educational, or personal reasons and who maintains his permanent residence outside of this country.  The bill’s provisions would, however, extend in-state undergraduate tuition rates to undocumented aliens who meet the conditions outlined in the bill.

      It should be noted that this bill was initially introduced in January of 2008 prior to the start of the 2008-2009 academic year.  Section 1 of the bill provides that an individual who “registers as an entering student or is currently enrolled in a public institution of higher education not earlier than the fall semester of the 2008-09 academic year” would be exempt from non-resident tuition rates.  The 2008-2009 academic year would presumably be updated.

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that this bill will have no direct effect on State revenues or expenditures as higher education tuition revenues are not part of State budgeted expenditures.  Currently, undocumented aliens who meet the conditions outlined in the bill are required to pay out-of-State tuition when they enroll at a New Jersey public institution of higher education.  Any cost impact associated with the bill’s provisions would be a reduction in tuition paid to public institutions of higher education.

      Information on the number of undocumented aliens enrolled in public institutions of higher education is not collected on a Statewide basis so OLS is not able to determine the current numbers of such students who may be enrolled and the potential reduction in tuition revenue if these students were paying in-State rather than out-of-State tuition rates.  This bill’s provisions would most likely increase the number of undocumented aliens who apply for admission to the public institutions.  However, the number of students each institution can admit is limited by its capacity.  The public institutions have reported being at capacity with the number of student applications continuing to grow each year.  Additionally, the institutions may make adjustments to their admission policies to offset any potential reduction in revenue that may result from the bill’s enactment.  For example, an institution may determine to admit a greater number of out-of-State students to realize increased tuition revenues.

      While the bill’s enactment will have no fiscal impact on State revenues or expenditures, the OLS is not able to estimate its impact on the public institutions’ tuition revenue and admission policies.


 

Section:

Education

Analyst:

Osomo Thomas

Senior Fiscal Analyst

Approved:

David J. Rosen

Legislative Budget and Finance Officer

 

 

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