FISCAL NOTE
Date Requested: January 12, 2024
Time Requested: 01:58 PM |
| Agency: |
Higher Education Policy Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1757 |
Introduced |
SB259 |
|
|---|
| CBD Subject: |
Education (Higher) |
|---|
|
FUND(S):
Special Revenue
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense, Creates New Program, Creates New Fund: PROMISE Plus Scholarship Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The proposed bill establishes the Promise Plus program which would award additional funding to students who meet more rigorous standards. Those students will be awarded funding under the current Promise program and the proposed Promise Plus program to cover the full tuition cost at the institutions students are attending. The annual additional cost for the Promise Plus program is estimated at approximately $11.3 million and will be distributed beginning with the 2025-2026 school year (FY26). This cost is additional to the current Promise Scholarship annual appropriations.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
11,251,458 |
| Personal Services |
0 |
0 |
132,180 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
11,119,278 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The estimate is based on the following considerations and assumptions:
- The students will meet more rigorous standards. The estimated cost below is based on students who have high school GPA of 3.75 or higher AND have a composite ACT score of 26 or higher (or a composite SAT score of 1240 or higher).
- The number of students per institution is based on the average number of current Promise recipients meeting the more rigorous standards.
- The additional tuition cost to be covered by Promise Plus is based on the 2023-2024 tuition cost at each institution. The cost of West Virginia community and technical colleges is estimated at the average tuition across all community and technical colleges.
- The current tuition cost for private colleges and universities ranges between approximately $17,000 and $33,000. The current estimate for students enrolled in private institutions is set at the highest public institution tuition rate ($9,684).
- Administrative cost is included to cover expenses for student tracking. The cost includes $20,000 per 1,000 students plus an additional position dedicated to Promise Plus administration.
Memorandum
Because the cost of the proposed bill would increase proportionately with any future increases of in-state tuition, a second scenario was calculated with a 5% tuition increase included. If tuition at the institutions increases 5%, the total cost would be $12.5 million for the Promise Plus program.
Person submitting Fiscal Note: Misty Price
Email Address: misty.price@wvhepc.edu