Date Requested: January 16, 2018
Time Requested: 01:35 PM
Agency: Community & Technical College System, WV
CBD Number: Version: Bill Number: Resolution Number:
1797 Introduced SB284
CBD Subject: Governor -- Bills Requested By



Sources of Revenue:

General Fund 0596

Legislation creates:

Creates New Expense, Creates New Program

Fiscal Note Summary

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

Senate Bill 284, if enacted, would increase the quality of the state’s workforce by increasing access to career education through the establishment the WV Invests Grant Program. The estimated costs associated with WV Invests Grant Program are approximately $8 million. To determine the estimated costs, unmet need was calculated for students attending a community and technical college during the 2014-2015 and 2015-2016 academic years. The calculations were based only on students attending in the fall and/or the spring semesters. Students included in the estimates meet the following criteria if they - were considered in-state students and pay in-state tuition and fees; - were not high school students pursuing dual credit; - have a designated high school graduation year; - have attempted at least 6 credits in a semester; - were pursuing an associate degree or a certificate; - have no prior credentials within the state; - were returning or continuing students with a cumulative college GPA of 2.0 or above; - have completed their FAFSA for the given academic year; and - have unmet need based on tuition and financial aid award. Unmet need was calculated as the difference between the estimated student tuition less any federal and state financial aid. Projected Unmet Need for WV Invest Grant It is estimated that a 20% increase in unmet need for the WV Invests Grant will result form new students entering the system. Tennessee and Oregon estimated a 20% growth in enrollment when tuition assistance becomes available to community and technical college students. Monitoring Cost Monitoring costs are associated with managing the scholarship and servicing the program participants. These costs include monitoring participants’ eligibility for initial enrollment and renewal, as well as maintaining residency requirements, drug free status, and other conditions. The cost for one year is estimated based on the number of students being served in that year only. It is estimated that about 5,000 students will require services, with a cost of approximately $100,000 a year. This estimate is based on the current cost of servicing students who participate in current financial aid programs. The inclusion of any regionally accredited, two-year institution that provides workforce development and academic transfer programs in this legislation creates a potential future scenario where these cost projections could increase. Some private, for-profit colleges charge up to $30,000 annually for programs that could become eligible for this grant program given the current bill language. None of the for-profit two-year colleges that currently operate in West Virginia would be immediately eligible for the WV Invests Grant; however, if they were to become regionally accredited in the future, they would be eligible. There is no stated limit on the maximum amount colleges could be reimbursed, and with no control over what private institutions may charge for tuition, the potential for substantial increases in cost is possible. The number of students are unduplicated in this calculation. The total unmet need will be the same with duplicated or unduplicated student counts.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 8,000,000 8,000,000
Personal Services 0 0 0
Current Expenses 0 100,000 100,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 7,900,000 7,900,000
2. Estimated Total Revenues 0 0 0

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


    Person submitting Fiscal Note: Ed Magee
    Email Address: