Colleges pay for growth in Texas veterans tuition program

Texas veterans, going back to Spanish-American War soldiers and World War I doughboys, have benefited for nearly 90 years from a state law providing tuition and fee exemptions to public universities and colleges.

Over the last two years, however, the number of participating students has mushroomed and the financial burden to schools, which must absorb the costs, has nearly tripled. This is due in large part to a 2009 amendment expanding the program to include children of veterans.

Now some university officials, including Texas A&M President R. Bowen Loftin, want legislators to know that school budgets are starting to sag under the cost.

"We are a military-serving institution and I personally support our vets in every way possible, but we're being squeezed," said Loftin.

The Hazlewood Act, which has its roots in a 1923 bill, helps veterans get college degrees but authorizes no additional funding for schools.

According to the Texas Higher Education Coordinating Board, the number of Hazlewood students jumped from 9,882 in 2009-2010 to 22,583 in 2010-2011. The cost to colleges and universities soared from $24.7 million to $69.3 million.

Texas A&M had a total of 181 Hazlewood students in 2009, compared to 921 in 2010-2011. Over those two years, the cost to the university increased from $964,372 to almost $7 million.

Other public universities are experiencing similar increases.

At the University of Houston, the number of Hazlewood students jumped from 359 to 598, with the cost rising from $2.4 million to $3.3 million. At Sam Houston State, the number more than doubled, from 147 to 378; costs rose from $437,200 to $1.4 million.

The increase has forced Sam Houston State to shift hires from other departments to the veterans resource center, said Scot Mertz, associate vice president for enrollment management. "We are getting more students, but losing money on those students," he said.

'Legacy Act' the culprit

Under the Hazlewood Act, veterans who are Texas residents or enlisted in Texas and served at least 181 days of active military duty can be exempted from tuition and fees at public colleges and universities for up to 150 semester credit hours. The spouses and children of veterans who die or become disabled in action are also eligible.

However, much of the recent growth in Hazlewood students can be traced to the 2009 "Hazlewood Legacy Act," which allows veterans to pass unused credit hours on to children under 25.

"There's no question we've had a tremendous increase as result of the changes. It's really opened the door tremendously," said UH bursar Gene Gillis, who noted that about half of current Hazlewood students fall under the legacy category.

The addition of children of veterans coincides with an increase in the number of veterans returning from Iraq and Afghanistan, a growing number of reservists who qualify because they have served more than 181 consecutive days, and a decrease in state funding for higher education.

Dramatic expansion

"The universe of potential users of Hazlewood has expanded dramatically," said Dominic Chavez, a spokesperson for the coordinating board. "From the state and institution perspective, we agree that this is a great program, but it is something we have to monitor, to see how much it grows and what pressures that puts on institutions."

For Texas veterans, the Hazlewood program serves a symbolic purpose as well as a pragmatic one, said John Boerstler, a Marine Corps veteran and president of Houston's Lone Star Veterans Association.

"Symbolically, I think it's a major gesture to vets and active military. It shows that the state is cognizant of the skills and experience vets bring to the table," said Boerstler, who is using the Hazlewood exemption to get his master's degree in public administration from the University of Houston.

Without Hazlewood, Boerstler says he - like many other vets - could not afford to pay for school.

Burden on schools

Texas A&M's Loftin agrees that Hazlewood is worthy, but he says legislators need to be aware that the burgeoning student population is placing a burden on schools.

"When something is growing at this rate, you have to look at it," said Loftin. "We hope they can find a way to preserve the benefits for both vets and their families without continuing to have the costs borne by the universities."

monica.rhor@chron.com