1. TACRAO Fall 2012 Jane Caldwell TX Higher Education Coordinating Board

2. Exemption & Waiver programs are authorized by the Texas Legislature and provide a monetary benefit to qualifying students via a reduction in tuition, fees, or both. Exemptions: Allow special groups of resident or non-resident students to pay a reduced amount of tuition and/or fees. Waivers: Allow special groups of non-resident students to pay a reduced nonresident tuition rate. THECB 02/2010 Slide 2

3. Implementation of exemption & waiver programs vary by statute. Mandatory: Require all institutions to honor provisions in statute for all qualifying students Optional: Allow governing boards to choose whether to implement the program or not. THECB 02/2010 Slide 3

4. With few exceptions, exemption and waiver programs do not receive state appropriations. Instead, institutions are required to cover the “costs” of the programs via foregone tuition and fees. Mandatory: $374 million FY2011 234.000 234.000 students served $492 million Approx. $492 million in foregone tuition and fees (FY 11 dollars). Optional: $118 million THECB 02/2010 Slide 4

5. Total Exemption & Waiver Recipients FY 2007-FY 2011 THECB 02/2010 Slide 5

6. Total Foregone Tuition & Fees FY 2007-FY 2011 THECB 02/2010 Slide 6 (Constant 2007 Dollars)

7. THECB 05/2012 Slide 7 Total Exemption Recipients by Program (FY 2011)

8. THECB 02/2010 Slide 8 Total Waiver Recipients by Program (FY 2011)

9.  SB32, passed by the 82nd Legislature, moved most of the exemption and waiver programs previously housed in Subchapter B of Chapter 54 of the Texas Education Code to Subchapter D and renumbered most of the programs in Subchapter D. This had two results: ◦ Citations for the program have changed (see handout); and ◦ The CB has rule making authority only for the waiver programs specifically granting us that authority. Slide 9

10. ProgramCurrent CitationRule Chapter Rule Subchapter Combat54.203122TT Children of Nurse Faculty54.35522O Fire Science54.20822T Good Neighbor Scholarship54.33121K Hazlewood54.34121NN Peace Officers54.208122U National Student Exchange51.93021EE Preceptors/Children54.35622P Reciprocal Exchange54.231 (d)21AA Students from Mexico54.23121BB Waivers54.213 (CS) 54.0601 (100 mi.) 21SS Slide 10

11. ProgramHazlewood Total New/Old Statute54.341/54.203 TypeMandatory Academic Year 2006-79,113$19,651,962 2007-89,642$22,183,444 2008-99,882$24,656,788 2009-1014,837$34,264,829 2010-1122,585$69,342,710 5-yr % change147.83%252.85% Slide 11

12.  TX veterans (including National Guardsmen) who are veterans of the US Armed forces  Children and Spouses of US Armed Forces vets (including National Guardsmen) who: ◦ Die or died from service-related injury/illness ◦ Are MIA ◦ Have been killed in action ◦ Are 100% unemployable due to service related injury/illness  Children and Spouses of TX NG vets killed on active duty for the State  Legacy children Slide 12

13. CB Staff Proposals – NOT Yet Adopted by Board  Vet living out of state due to military orders may use Hazlewood  Expand description of 100% disabled veteran to include persons who are “totally and permanently disabled,” not just those 100% unemployable  Clarify vets’ options when they are eligible for federal benefits and Hazlewood  Specifically indicate a vet, though Legacy, may revoke his/her assignment of hours to a child  Make age limit apply only to Legacy children, not all Hazlewood children Slide 13

14. CB Staff Proposals – NOT Yet Adopted by Board  Add common definitions  Add academic progress requirements for continuation awards  Recipient must complete and submit FAFSA or TASFA by the end of the first award term in a given year  Exemption cannot be used to avoid a penalty charged for excess hours or excess dropped classes  Each institution must designate an Exemption/Waiver Contact on their campuses Slide 14

15.  Program fact sheets: ◦ www.collegeforalltexans.com/ www.collegeforalltexans.com/  Paying for College  Types of Financial Aid  Exemptions  Waivers  Coordinating Board: ◦ grantinfo@thecb.state.tx.us grantinfo@thecb.state.tx.us ◦ hazlewood@thecb.state.tx.us hazlewood@thecb.state.tx.us Slide 15