Sources of Revenue:

General Fund,Special Fund

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    House Bill 2180, if approved would allow the Higher Education Policy Commission rule-making authority to redeem or secure repayment of Promise Scholarships Funds from students who withdraw or drop classes after the end of the add/drop period.
    According to HB 2180, if a student receiving Promise Scholarship funds withdraws or drops a class after the end of the add/drop period, the per credit hour cost of the course will be taken from the student's Promise award for the following term or semester. The bill language further states that if a student graduates or fails to return to school, repayment shall be made directly to the Higher Education Policy Commission. Costs associated with the Promise Scholarship would be reduced approximately $288,000.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 -288,256 -288,256
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 -288,256 -288,256
2. Estimated Total Revenues 0 0 0

Explanation of above estimates (including long-range effect):

    HEPC staff report that there are currently 9,224 students who are currently receiving Promise Scholarships, 8,167 of which are enrolled at West Virginia public institutions. Of these students, there are currently 107 enrolled full-time whose credit hours are reported as being less than 12. The associated credit hours dropped for these 107 students are 1,126, therefore the dollar amount that could be deemed for repayment by the Promise Scholarship recipients is estimated at $180,160 per semester or $360,320 per academic year. This estimate is based on the average per credit hour tuition charge for a resident undergraduate student of $160 for 2011.It is estimated that collection costs would equal about 20% of the amount to be repaid or $72,064.The additional collection costs would reduce the amount realized from repayments to $288,256.



    Person submitting Fiscal Note: Ed Magee
    Email Address: