LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 862 HLS 24RS 2063
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 30, 2024 1:57 PM Author: HUGHES
Dept./Agy.: Higher Education
Subject: Tuition and Mandatory Fee Autonomy Analyst: Chris Henry
STUDENT/TUITION EN INCREASE SG RV See Note Page 1 of 1
Authorizes, with limitations, public postsecondary education management boards to establish and increase student tuition
and mandatory fees
Proposed law authorizes each public postsecondary education management board the ability to adjust tuition and mandatory
fees by an increase of not more than 10% or a decrease without limit over any two-year period and further provides as
follows: (1) Establish differential tuition for graduate, professional, specialized programs, and undergraduate programs which
have been identified as “high cost” by the Board of Regents. (2) Establish mandatory fee amounts as well as control and
consolidate separate fees. (3) Requires each board to establish criteria for waiving the tuition authorized by proposed law in
cases of financial hardship. (4) Requires each management board to annually report on the tuition and fee changes to the
Board of Regents, Legislative Committees on Education, House Appropriations, and Senate Finance.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
There could be an increase in SGR expenditures corresponding to the increases in revenue resulting from the proposed law
allowing management boards to adjust tuition and mandatory fees in a given academic year.
Note: The proposed legislation would not impact the Taylor Opportunity Program for Students (TOPS). Pursuant to R.S.
17:5002, award amounts for TOPS are frozen at the 2016-17 tuition amounts charged by the public college or university.
REVENUE EXPLANATION
The proposed law will likely increase SGR revenue to the extent differential tuition and mandatory fee increases are
approved by the management boards of individual institutions. The programs of study that will be eligible for an increase are
limited to any graduate, professional, or specialized program as well as undergraduate programs identified as high cost by
the Board of Regents. The proposed legislation provides flexibility in the additional amount institutions can charge as long as
they do not increase the amount by more than 10% in one year compared to the previous year. Conversely, the proposed
law will also allow management boards to lower tuition and fee amounts without limitation. Therefore, the LFO cannot
accurately project the additional annual revenue each institution will generate.
As an illustrative example of the amount of revenue in question, based on the Board of Regents (BOR) budget forms, FY 23
collections of “General Registration” fees at 2-year and 4-year institutions totaled $981.2 M. A one percent (1%) increase in
this revenue stream would generate $9.8 M in additional gross revenue, while the full 10% would equate to $98.1 M.
Actual collections of mandatory tuition and fees will be influenced by several additional factors. Collections could be reduced
by hardship waivers, fee exemptions, or other forms of student aid. In addition, institutions may choose not to impose
significant increases or any increases at all in order to maintain access for a wider body of students. General market factors
such as the amount charged by peer institutions will also have to be considered to ensure tuition and fees are competitive.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
x 13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Deputy Fiscal Officer
or a Net Fee Decrease {S}


Statutes affected:
HB862 Original: 17:3351(A)(5)
HB862 Engrossed: 17:3351(A)(5)
HB862 Reengrossed: 17:3351(A)(5)
HB862 Enrolled: 17:3351(A)(5)
HB862 Act 790: 17:3351(A)(5)