FISCAL NOTE
Date Requested: February 06, 2019
Time Requested: 10:40 AM |
| Agency: |
Development Office |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2427 |
Introduced |
HB2550 |
|
|---|
| CBD Subject: |
Economic Development |
|---|
|
FUND(S):
General
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense, Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Based on national data and WV company success rates in being awarded SBIR/STTR grants, we estimate that 25% of total SBIR/STTR grant applications are successful in winning awards.
In 2017, seven WV companies were awarded $6.8million across 13 federal SBIR/STTR Phase I and Phase II awards. Based on this, we estimate that there were 28 total applications for SBIR/STTR in WV during the 2017 application process.
Additionally, based on national data and WV company success rates, we estimate that 50% of companies applying for Phase II grant are successful in winning the award.
It's important to note that HB 2550 states that "a business may only receive one grant under this article per year. A business may receive only one grant under this article with respect to each federal proposal." In 2017, two companies received more than one award; however, under this legislation, they would only be eligible to receive ONE Phase I or Phase II STATE match per year. If one company received both a Phase I and a Phase II award in the same year, they would need to choose which grant to have matched.
Based on these parameters, we project HB 2550 to cost the state $4,190,000 over three years while leveraging federal SBIR/STTR investment of $24,541,387. For every $1 in state funding, we anticipate $6 in federal funding (6:1 return on investment).
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
770,000 |
1,920,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
770,000 |
1,920,000 |
| 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):
Based on these parameters, we project HB 2550 to cost the state $4,190,000 over three years while leveraging federal SBIR/STTR investment of $24,541,387. For every $1 in state funding, we anticipate $6 in federal funding (6:1 return on investment).
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Kimberly Miller
Email Address: kimberly.l.miller@wv.gov