FISCAL NOTE

Date Requested: March 06, 2017
Time Requested: 12:04 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2841 Introduced SB525
CBD Subject: Education (Higher), Taxation


FUND(S):

General Revenue Fund

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.


    The stated purpose of this bill is to establish an education savings account program for West Virginia students, define terms, authorize the education savings accounts, grant funds, provide restrictions on use of funds, provide financial management of the funds, establish terms of eligibility, impose testing and data collection requirements, and to reaffirm independence of nonpublic schools.
    
    There will be no additional administrative costs for the State Tax Department from this bill. The Treasurer will have additional costs to administer this program
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


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


    There will be no additional administrative costs for the State Tax Department from this bill. The Treasurer will have additional costs to administer this program
    
    



Memorandum


    The stated purpose of this bill is to establish an education savings account program for West Virginia students.
    
    The bill’s definitions and requirements are in broad terms. There is much room for interpretation.
    
    The bill marks a change of policy, shifting from support of public schools to public support of private education. The bill authorizes subsidizing private educational institutions with public funds. Taxpayer dollars will also pay for private financial management firms and CPAs. Fund,
    
    The Treasurer will now incur costs in administering the individual educations accounts.
    
    Though not stated directly, it is presumed the grants are made from the General Fund since the bills mentions money remaining in the educational savings account “reverts to the State General Fund.”
    
    The bill is silent as to who oversees that the state educational standards are being met. The bill does not allow a personal income tax deduction under W. Va. Code §11-21-12a.
    



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov