S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 721--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sens. RIVERA, PERKINS -- read twice and ordered printed,
  and when printed to be committed to  the  Committee  on  Education  --
  recommitted  to  the  Committee on Education in accordance with Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to require the conducting of a study by the board of regents of
  feasible alternative methods of funding a college education at  public
  four-year institutions of higher learning in New York state

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The legislature recognizes  that  post-secondary  education
has  expanded  opportunities for New Yorkers to qualify for high-quality
jobs and entry into the middle class, providing clear benefits  to  this
state's economy.
  Regrettably,  public  investment in higher education in this state has
decreased over the past decade, resulting in  substantial  increases  in
annual  tuition, fees and room and board imposed by public four-year and
two-year institutions of higher education in the state. These  increases
have  out-paced  increases  in  the  average family income in the state,
forcing students to incur larger amounts of debt in order to  afford  to
attend  college.  The  average  student loan debt of students graduating
from public four-year institutions of higher education in New  York  now
exceeds $25,000.
  Such high levels of student debt are damaging not only to the individ-
ual  student's  ability  to succeed financially but also will have grave
consequences for the future economy of this state.
  The legislature finds that it must halt the decrease  in  the  state's
support  for public education and, over time, must increase its contrib-
ution to the funding of higher education. It also finds that  the  state
must  immediately seek another approach to financing the students' share

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD05853-02-6

S. 721--A                           2

of the cost of public higher education  in  this  state  that  will  not
result  in  students  graduating  from  New  York's  public colleges and
universities burdened with debt.
  S  2.  The  board of regents shall consider the creation of a proposed
pilot program called "Pay Forward, Pay Back".
  (a) The pilot program would:
  (i) Replace the current system of charging students tuition  and  fees
for enrollment at public institutions of higher education; and
  (ii)  Identify  one or more public institutions of higher education to
participate in the pilot program.
  (b) If the board  of  regents  determines  that  a  pilot  program  is
warranted,  the  commission shall submit a proposed pilot program to the
2017 regular session of the legislature for approval.
  (c) The proposed pilot program shall:
  (i) Allow students who are residents of this state, as defined by  the
institution,  and who qualify for admission to the institution to enroll
in the institution without paying tuition or fees;
  (ii) Provide that, in lieu of paying tuition or  fees,  students  must
sign  binding  contracts to pay to the state of New York or the institu-
tion a certain percentage of the student's annual adjusted gross  income
upon graduation from the institution for a specified number of years;
  (iii)  Specify  the  number  of  years  and  the  percentage of annual
adjusted gross income for contracts at  each  participating  institution
and base the specifications on research to date; and
  (iv)  Establish  an  immediate  funding  source for the first 15 to 20
years of the pilot program and include the establishment of a  revolving
fund to deposit payments made under the pilot program.
  (d) The pilot program may vary by institution depending on:
  (i) The total cost of education at the institution.
  (ii) The portion of the cost that is paid by the state.
  (iii) The number of years specified in the contract.
  (iv)  The  percentage of annual adjusted gross income specified in the
contract.
  S 3. (a) The board of regents shall conduct a study on whether  public
universities  in  the  state can successfully implement a tuition freeze
that will guarantee that incoming undergraduate students have  the  same
tuition rate for four years. The study must include an analysis of:
  (i)  The 'Western Tuition Promise' offered by Western Oregon Universi-
ty;
  (ii) The 'Finish in Four' program proposed in Florida; and
  (iii) Ways of mitigating the financial strain that the adoption  of  a
tuition freeze would place on a university's finances.
  (b)  The board of regents shall submit a report on the study described
in subdivision (a) of this section to the committees relating to  higher
education during the 2017 regular session of the legislature.
  S 4. This act shall take effect immediately.