FISCAL NOTE

Date Requested: February 18, 2016
Time Requested: 03:37 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2744 Introduced HB4610
CBD Subject: Education (Higher)


FUND(S):

0596

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


    HB 4610 would abolish the West Virginia Council for Community and Technical College Education; transfer the power and duties of the council to the governing boards of the institutions of higher education; and provide for the disposition or transfer of assets and property of the council.
    
    The enactment of this legislation would have a substantial negative financial impact on the State, institutions and students served by public higher education. The Council is a critical and necessary partner in with the West Virginia Department of Commerce and others in the process to support existing businesses and attract businesses such as Procter and Gamble and Macy’s to West Virginia. Corporations will not locate to the State without significant workforce investment commitments from a State agency that serves as the coordinating entity for Community and Technical Colleges. This coordination cannot occur at the local level.
    
    It is estimated that the cost associated with the enactment of this legislation would be about $3.8 million per year. This does not include an estimation of lost future tax revenues from the cessation of economic development activities.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 3,800,000 3,800,000
Personal Services 0 1,500,000 1,500,000
Current Expenses 0 100,000 100,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 2,200,000 2,200,000
2. Estimated Total Revenues 0 0 0


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


    Grant Revenues
    
    The Council receives federal and state grants that would not be received directly by institutions including that are critical for workforce training:
    
    SPNEG- (Federal Department of Labor National Emergency Grant) 5.25 million total grant and $2.625 million annual expenditures
    
    NASA Space Grant- $500,000 annual expenditures (this is a grant through WVU but the work is coordinated through this office)
    
    Benedum Petroleum Tech- $250,000 total grant and $84,000 annual expenditures
    
    In the past 5 years the Council has received the following grants used to train West Virginia’s workforce:
    
    Green Up- 6 million
    Green Collar- 1 million
    FIPSE- (Fund for Improvement of Postsecondary Education) $634,990
    Benedum College Transition- $259,000
    
    
    Shared Services
    
    The Council provides financial aid services to three institutions. The additional net costs that would be incurred from the employment of three additional financial aid directors and termination of the Council’s shared services function would be about $208,000.
    
    The Council provides facility management services to the Community and Technical Colleges. If each institution employed a director of facilities management, the addition net cost from the employment of the directors and the termination of the Council’s facilities management function would be about $1,134,000.
    
    The elimination of the Council’s $750,000 state appropriation would have a severe impact on students’ ability obtain the needed workforce education to live productive lives. Current and future tax revenues would also be considerably less than they would be if the Council remains in service to the State.
    



Memorandum


    



    Person submitting Fiscal Note: Ed Magee
    Email Address: edward.magee@wvhepc.edu