Creates an application fee for the general education exam

BILL NUMBER:S2788

Title of bill

An act to amend the education law, in relation to creating an application fee, not to exceed fifty dollars for the administration of the general education development program

Purpose

This legislation would provide a source of funding for the State's GED (General Education Development) program which has faced serious funding shortfalls in recent years.

Summary of provisions

Section one amends § 317 of Education Law to require the Commissioner to collect a fee from those taking the GED exam.

Section two provides for the effective date, which is 90 days.

Existing law

Funding for GED testing comes from the State Education Department's operations budget. In 2004-2005, the GED was funded with $3.9 million in State General Funds, and $180,000 in fees. By 2008-2009, there was no longer a budget line for GED testing, but SED continued to allocate $3.9 million for the program. Since then, SED's budget has been cut by 40% and the department can no longer adequately support the program. 48 states finance their GED testing programs in part through a testing fee. However, under New York Public Law 317, the state is prohibited from charging test takers a fee. Prior to 1994 a fee of $25 was collected by SED and was used to support the program.

Justification

Prior to the enactment of the 1994 budget, SED charged a fee to take the GED exam. Article VII language enacted in 1994 prohibited the collecting of fees for the GED exam, and provided a $1.2 million appropriation for the program.

Unfortunately due to the lack of any fee, many applicants take the test with no preparation, or sign up for a seat but fail to show up to take the exam. As a result, many applicants are denied a seat and are forced to wait months to take the test. While the demand for seats has increased -the pass rate has fluctuated between 50% and 60% statewide for years. SED pays a fee of $20 to the test administrators for each seat, which means nearly half of the fees are wasted on failed tests.

There are other costs associated with the GED. The Department does not develop or administer the GED. SED pays approximately $1.45 million annually to the American Council on Education (ACE) to use the test. Operational costs for the Department's GED Office costs about

$900,000. Another $1.1 million is paid to test administrators, of which there are approximately 300 sites.

New York State's pass rate is consistently among the lowest in the nation, and was dead last in 2008. It is important to note that New York State is one of only two states that does not charge a fee to take the GED. California and Texas, states comparable to New York in size and numbers of test-takers, charge applicants $100 per test.

By charging a fee, the State Education Department could both raise revenue to support the program, and obtain a higher pass rate, thereby wasting fewer resources.

Please note: TANF funds are available for vouchers to take the GED, and therefore, applicants on public assistance would not be denied a seat for the GED based upon their lack of ability to pay.

Legislative history

This is a new bill.

Fiscal implications

This bill would provide as much as $2.5 million to the State Education Department to support the GED program.

Effective date

This bill would take effect 90 days after it is enacted.