SB 0963 - Fiscal Note

Fiscal Note - SB 0963 - Higher Educ. Loan Authority May Fund Secondary Educ. Loans

L.R. NO.  3576-01
BILL NO.  SB 963
SUBJECT:  Higher Education:  Higher Education Loan Authority
TYPE:     Original
DATE:     March 21, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

None                            $0                  $0                $0

Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

None                            $0                  $0                $0

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

Local Government                $0                  $0                $0





                              FISCAL ANALYSIS

ASSUMPTION

Officials from East Central College assume the proposal would have no fiscal
impact on the college.

Officials from Jefferson College assume their financial aid office would have
to process over 200 additional financial aid request forms and establish
separate procedures and accounting/audit trails for secondary students.  The
Oversight Division assumes the provisions of the proposal could be
accomplished with existing resources.

Officials at the Coordinating Board For Higher Education (CBHE) assume the
bill would not have a fiscal impact on the agency or the state because the
Missouri Higher Education Loan Authority (MOHELA) is a body corporate politic
and does not receive state funds.  In addition, CBHE assumes MOHELA would
finance secondary education loans through bond issues.

FISCAL IMPACT - State Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)

                                       0         0         0

FISCAL IMPACT - Local Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)

                                       0         0         0
DESCRIPTION

The proposal would define "secondary education loans" as loans originated by
banks, other financial institutions, secondary education institutions or the
Higher Education Loan Authority (authority).  The proceeds would be used to
pay tuition for a secondary education at an institution which offers courses
to students under an agreement with a public community college or a private
four year college or university.

The proposal would give the authority the powers to issue bonds or other
forms of indebtedness to obtain secondary education loans.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.

SOURCES OF INFORMATION

Coordinating Board For Higher Education
Jefferson College
East Central College

NOT RESPONDING:  Crowder College, Moberly Area Community College,
Metropolitan Community College, Mineral Area Community College, St. Charles
County Community College, St. Louis Community College, Three Rivers Community
College