FISCAL NOTE

Date Requested: February 13, 2020
Time Requested: 10:39 AM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2885 Introduced HB4720
CBD Subject: Education (Higher)


FUND(S):

General Revenue

Sources of Revenue:

General Fund

Legislation creates:

Creates New Program



Fiscal Note Summary


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


House Bill 4720, if enacted, would qualify not-for-profit private baccalaureate institutions for the Advanced Career Education Programs and the West Virginia Invests Grant Program. The total cost was estimated between $1.3 and $1.7 million, which includes an estimated 10% increase in the number of students enrolling in qualifying programs.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 1,700,000 1,700,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 1,700,000 1,700,000
2. Estimated Total Revenues 0 0 0


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


It was estimated that Fifty percent of the first time West Virginia resident freshmen attending these institutions (IPEDS reporting, fall 2018) would receive the financial aid described in this legislation. It was assumed that 50% of all first-time freshmen would enroll as certificate or associate degree seeking students. The number of eligible sophomore students was estimated as 70% of the eligible freshmen based on 70% retention rate. The total number of eligible students is the total of estimated eligible freshmen and estimated eligible sophomores. One estimate was calculated based on the 2019-2020 average WV Invests award for students at public two-year institutions ($3,017 annual award). A second estimate was calculated based on the average tuition at public two-year institutions for 2019-2020 academic year ($4,118 annual tuition). It was assumed that in order to participate in WV Invests, private not-for-profit baccalaureate institutions will charge certificate and associate degree tuition and fees only up to the average tuition and fees at public two-year institutions similarly to the public baccalaureate institutions.



Memorandum






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