LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 3119

STATE OF NEW JERSEY

219th LEGISLATURE

 

DATED: FEBRUARY 18, 2021

 

 

SUMMARY

 

Synopsis:

Allows certain students who hold T, U, or O visa to qualify for in-State tuition and allows students who hold T or U visa to qualify for student financial aid.

Type of Impact:

Annual State expenditure increase from the General Fund; Annual revenue impact on public institutions of higher education.

Agencies Affected:

Office of the Secretary of Higher Education; Higher Education Student Assistance Authority; Public Institutions of Higher Education.  

 

 

Office of Legislative Services Estimate

Annual Fiscal Impact

 

 

State Expenditure Increase

Indeterminate

 

Public Institutions of Higher Education Revenue Impact

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) concludes that the bill would result in an indeterminate annual increase in State expenditures under student financial aid programs administered by the Office of the Secretary of Higher Education (OSHE) and the Higher Education Student Assistance Authority (HESAA). 

 

·         The OLS also determines that the bill would lead to an annual indeterminate impact on tuition revenue for public institutions of higher education. 

 

·         The magnitude of these effects cannot be definitively ascertained because the OLS has insufficient information to determine the number of students who would become newly eligible for in-State tuition rates or State student financial aid as a result of enactment of the bill. 

 

 

BILL DESCRIPTION

 

      This bill provides that a student who holds a T or U visa or who is a dependent student whose parent or guardian holds an O-1 or O-2 visa and meets certain requirements under existing law is exempt from paying the out-of-State tuition at public institutions of higher education.  The bill also provides that a student who holds a T or U visa is eligible to participate in any State student financial aid, grant, or scholarship program if the these same requirements are met.

      Under current law, a student, including a student without lawful immigration status, is permitted to pay in-State tuition at the State’s public institutions of higher education if the student meets the following criteria: (1) attended high school in this 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 2013-2014 academic year; and (4) in the case of a person without lawful immigration status, files an affidavit with the institution of higher education stating that the student has filed an application to legalize the student’s immigration status or will file an application as soon as the student is eligible to do so.  The law specifically states, however, that students who are nonimmigrant aliens within the meaning of the Immigration and Nationality Act are not permitted to pay in-State tuition under the provisions of the law. Among those who fall under this nonimmigrant alien category are persons holding a T, U, O-1, or O-2 visa.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that this bill would result in an indeterminate increase in State expenditures under student financial aid programs administered by the OSHE and the HESAA.  The magnitude of the increase would be determined by the form and amount of State student financial aid for which students would become eligible and the extent to which the availability of financial aid causes additional students to enroll in institutions of higher education.  The OLS cannot quantify the magnitude of this increase because there is insufficient information as to the number of students who currently hold T or U visas and are attending or will attend institutions of higher education.  The OLS estimates, however, that the increase in State student financial aid expenditures would be minimal because the number of affected students would likely be small.  Given the likely low number of students who would newly qualify for State financial aid under this bill, the increase in State expenditures would likely be minimal relative to current appropriations for student financial aid programs, which the OLS calculates as $526 million for the 12-month FY 2021 timeframe.

      The OLS does note that funding for State financial aid programs is, in part, contingent upon the amount appropriated to the programs.  If appropriations for State student financial aid programs remain level over time, an increase in the number of students eligible for State financial aid programs under this bill would mean that the amount of financial aid awarded to each student would be reduced. 

      The OLS also determines that the bill would lead to an annual indeterminate tuition revenue impact on public institutions of higher education.  Higher education tuition revenues are not part of State budgeted expenditures; therefore, any changes in tuition revenues as a result of this bill would only impact the public institutions and would have no impact on State revenues or expenditures.  While providing in-State tuition rates for T and U visa holders and the dependents of parents or guardians who hold O-1 or O-2 visas may reduce tuition revenue provided by those students (who may otherwise be paying higher nonresident tuition rates), a public institution may make adjustments to their tuition rates to offset any potential reductions in tuition revenue that may result from the bill’s enactment.  Moreover, longer-term tuition revenues may increase or decrease relative to where they would have been absent this bill to the extent that students, who may not have otherwise attended a public institution of higher education, would enroll in the institutions because of the lower tuition price created by the bill.

 

 

Section:

Education

Analyst:

Christopher Myles

Associate Fiscal Analyst

Approved:

Thomas Koenig

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.).