S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1092
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced  by  Sens. RIVERA, PERKINS -- read twice and ordered printed,
   and when printed to be committed to the Committee on Higher Education
 
 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
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01101-01-7
              

 S. 1092                             2
 
   §  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
 2018 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.
   §  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 2018 regular session of the legislature.
   § 4. This act shall take effect immediately.