LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 148 SLS 21RS 52
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 16, 2021 11:21 AM Author: CORTEZ
Dept./Agy.: Office of Student Financial Assistance (OSFA)
Subject: Postsecondary Financial Assistance Analyst: Tim Mathis
COLLEGES/UNIVERSITIES EN INCREASE GF EX See Note Page 1 of 2
Establishes the M.J. Foster Promise Program. (gov sig)
Proposed law establishes the “M.J. Foster Promise Program” beginning with the 2022-2023 academic year to provide a
financial assistance award to an eligible student who enrolls in a qualified program at a two-year public post-secondary
education institution or an accredited proprietary school to pursue an associate degree or credential needed for a high-
demand, high-wage occupation. Provides awards up to $3,200 per year per recipient enrolled full-time in a two-year
institution, applicable only to tuition and required fees. Awards may exceed annual amount if used for a qualified program
that is less than one year of duration. Total awards are limited to $6,400. Award applicable only after all other financial aid
and awards are applied and only for remaining balance due for tuition and required fees; however, an eligible student who
qualifies for both a Foster award and a TOPS award shall receive the highest award available. (Bill summary continued on
page two)
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $46,000 INCREASE INCREASE INCREASE INCREASE $46,000
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
There will be a significant increase in the expenditures of the Office of Student Financial Assistance (OSFA) to fund awards
for eligible students and for program administration. Proposed law limits program implementation to the appropriation of
funds by the Legislature, not to exceed $10.5 M annually. HB 1 of the 2021 RS appropriates $5 M SGF for the program.
There may be an increase in expenditures to the extent awards and administrative costs are funded through the M.J. Foster
Promise Program Fund. OSFA estimates first year implementation costs of $46,000 and $66,200 general administrative
expenditures thereafter (see pg 2).
Proposed law would provide eligible students enrolled in qualified programs at a two-year public post-secondary institution,
up to $3,200 per year for full-time students, or proportionate to the number of hours taken for part-time students, not to
exceed $6,400. Awards for qualified programs less than one year may be greater than $3,200, but may not exceed $6,400.
An appropriation of $10 M would fund maximum awards for up to 3,125 full-time students at public institutions and
$500,000 would fund maximum awards for 156 students at proprietary schools. Actual program costs will depend on the
number of students that meet the eligibility criteria, the limitation of awards to tuition and fee balance after other forms of
financial aid have been utilized, and the availability and cost of qualified programs, however this is indeterminable.
(Expenditure explanation continued on page two)
REVENUE EXPLANATION
There will be an indeterminable impact to SGR for the Louisiana Community and Technical College System (LCTCS) and
other two-year institutions. Institutions will experience an increase in SGR to the extent the proposed award results in a net
increase in student enrollment; however awards may supplant existing funds if awarded to current students. For illustrative
purposes, the combined tuition and fees for current full-time students pursuing an associates degree averages $4,178 per
semester. Although there is no statewide tuition and fee schedule for non-credit courses, the average tuition for the Reboot
Louisiana short-term training program is $2,035.
There will be a reduction in state general fund to the extent the legislature transfers funds from the state general fund to the
M.J. Foster Promise Program Fund, as well as a corresponding increase in statutory dedications revenues.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 148 SLS 21RS 52
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 16, 2021 11:21 AM Author: CORTEZ
Dept./Agy.: Office of Student Financial Assistance (OSFA)
Subject: Postsecondary Financial Assistance Analyst: Tim Mathis
CONTINUED EXPLANATION from page one: Page 2 of 2
(Bill summary continued from page one)
Requires Board of Regents (BOR) to establish an advisory council to identify qualified programs, to consider programs
aligned with industry sectors with high-demand, high-wage jobs aligned with workforce priorities of state and regions.
Eligible students must: be at least: 21 years old; have earned a high school diploma or co-enrolled in a program to earn a
high school credential; be a U.S. citizen, a resident of LA for prior 24 months, or be a veteran of U.S. armed forces, a
spouse, or dependent child of a resident or nonresident active duty; and have not previously earned an undergraduate
degree at associate level or above; have received an honorable discharge or discharge under honorable conditions if served
in U.S. armed forces; not be incarcerated or have a conviction for a crime of violence; have applied for federal student aid
unless ineligible; provide administering agency permission to collect employment information; agree to reside and work full-
time in LA for at least one year after completion of last semester in which award is provided; agree to annually perform,
during each year award received, at least 20 hours community service, apprenticeship, internship, or mentorship related to
the qualified program; and have a family income no greater than 300% of the federal poverty guideline or to certify
unemployment or underemployment for at least six months prior to receiving award. Maintaining eligibility requires students
to: make steady academic progress; remain in good academic standing; maintain continuous enrollment; maintain
cumulative grade point average of at least a 2.0; not be incarcerated or have a conviction for a crime of violence; have
received an honorable discharge or general discharge if separated from the U.S. armed forces during award; have received
the award for no more than three consecutive academic years; have not used the award for more than 60 hours of academic
credit; certify completion of requirements for community service, apprenticeship, internship, or mentorship.
Funding provisions would allow administering agency to see, accept, and expend funds from any source. Prioritizes awards
for students by order of application received and those who previously received an award. Implementation of program
subject to appropriation of funds by the legislature, not to exceed $10 M annually for public institutions and $500,000 for
proprietary schools. Creates the “M.J. Foster Promise Program Fund” in the state treasury to receive appropriations, grants,
gifts or donations received by the state for providing program awards and administration.
Provides for the Board of Regents through the Office of Student Financial Assistance (OSFA) to administer the program.
Requires OSFA to establish a working group comprised of certain state agencies and other stakeholders. Requires
administering agency to enter into a memorandum of understanding with the LA Department of Revenue and the LA
Workforce Commission to share taxpayer information for purposes of generating data related to the success of award
recipients in the workforce. Requires administering agency to develop and implement a uniform information reporting
system comprised of the following: data on all award recipients’ length of time to complete a qualified program,
demographic information, and pre- and post-award employment information. Requires administering agency to conduct a
query of each first-time award recipient to determine the extent receiving the award influenced their decision to enroll and a
written report to the House and Senate Committees on Education. Requires BOR to establish an advisory council to identify
qualified programs in which an eligible student may enroll to receive an award, and provides for membership.
(Expenditure explanation continued from page one)
Because awards would be limited to the remaining balance of tuition and required fees after all other financial aid and
awards are applied, the program is likely to serve a greater number of students with awards less than the $3,200 maximum
award level.
Out of the 45,700 students age 21 years and older that are currently enrolled in Louisiana Community and Technical College
System (LCTCS) institutions, for example, approximately 32,900 (72%) receive federal financial aid (including Pell Grants),
7,300 (16%) receive state financial aid (such as TOPS or Go Grants), 5,400 (12%) receive external scholarships, and 1,800
(4%) receive institutional aid. It is unknown how many students receive a combination of such financial aid. It is unknown
how many current and potential students would be eligible for the awards, based on the eligibility criteria in the proposed
bill. According to the LCTCS, there are 45,700 students age 21 and older currently enrolled in two-year institutions; however
it is not known how many of these students’ family incomes fall below the 300% federal poverty threshhold for award
eligibility. Additionally, the number of individuals not currently attending two-year institutions but potentially eligible for
awards could be significant. Although it is unknown what quality programs will be designated by the advisory council as
eligible for the proposed award, it is likely to include existing associates degree and short-term credential programs aligned
with high-demand, high-wage jobs. Public institutions may experience increased costs to the extent the program leads to
additional demand for certain programs, however this is indeterminable. There are 154 proprietary schools licensed by the
Board of Regents.
OSFA estimates increased costs of approximately $46,000 in the first year of implementation and $66,200 thereafter. This
includes $63,700 for one additional position in the Scholarship/Grants Division to coordinate the program ($45,000 salary
and $18,700 in related benefits); costs are prorated in year one due to the position beginning six-months prior to FY 23
program implementation. Operating expenses include $14,100 in year one for costs associated with rulemaking,
informational publications, computer equipment, and supplies, with approximately $2,500 for operating expenses in
subsequent years. Per the Board of Regents, there will be increased costs associated with the preparation of the annual
report and programming changes for the uniform reporting system, however such costs are anticipated to be minimal.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director