HB 5054

Abstract

Creates the University Tuition Stabilization Act and amends the State Finance Act. Creates the University Tuition Stabilization Fund as a special fund in the State treasury to reduce the need for State universities to increase tuition in fiscal years of State budgetary shortfalls. Provides that a university's use of tuition revenues shall not exceed 99.5% of the estimated tuition revenues for the fiscal year when estimated State general funds revenues exceed the prior fiscal year's estimated general funds revenues by more than 4% (instead, the university shall deposit a total amount equal to 0.5% of the estimated tuition revenues into the Fund). Provides that a university's use of tuition revenues shall not exceed 99% of the estimated tuition revenues for the fiscal year when estimated State general funds revenues exceed the prior fiscal year's estimated general funds revenues by more than 4% for 2 or more consecutive fiscal years (instead, the university shall deposit a total amount equal to 1% of the estimated tuition revenues into the Fund). Provides that moneys in the Fund shall be appropriated to universities for budget years (i) in which the rate of insured unemployment in this State equals or exceeds 6%, as determined by the Department of Employment Security, or (ii) in which the amount of State funds budgeted for universities is equal to or less than the amount appropriated to universities the prior fiscal year. Effective July 1, 2004.