comptroller seal Texas Comptroller of Public Accounts

FOR IMMEDIATE RELEASE

August 1, 2016

Texas Comptroller: Hazlewood Act a Unique Program with Spiraling Price Tag

(AUSTIN) — For nearly 75 years, Texas has celebrated its bond with the armed services by providing our veterans, their children or their survivors with up to 150 free credit hours at any public college or university in the state.

This benefit, created by the state's 1943 Hazlewood Act, does not receive substantial state appropriations. Instead, colleges and universities absorb most of the costs of the credit hours provided by the act. Unfortunately, some higher education institutions report that the subsidy has put an undue strain on their finances.

In the latest issue of Fiscal Notes, the Comptroller's office examines the history and financial implications of the Hazlewood Act.

"Spiraling losses in tuition revenue due to the exemption — nearly $178 million in 2015 — are forcing some public colleges and universities to raise tuition rates to make up the cost," Texas Comptroller Glenn Hegar said. "In effect, students without Hazlewood benefits are subsidizing those who have them.".

Fiscal Notes is an extension of the Comptroller's constitutional responsibilities to monitor the state's economy and estimate state government revenues. It has been published periodically since 1975, featuring in-depth analysis concerning state finances and original research by subject-matter experts in the Comptroller's office.

Published monthly, Fiscal Notes is online at comptroller.texas.gov/fiscalnotes, and can also be received by subscribing via the Comptroller's website.

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