FISCAL NOTE

Date Requested: February 17, 2021
Time Requested: 01:16 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2119 Introduced HB2586
CBD Subject:


FUND(S):

General

Sources of Revenue:

General Fund

Legislation creates:

Increases Existing Expenses



Fiscal Note Summary


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


House Bill 2586, if enacted, would to increase PROMISE scholarships to persons majoring in STEM (Science, technology, engineering and mathematics) fields to pay the full cost of tuition, room and board. At the 2019-2020 rate of tuition, room and board, and current Promise utilization, the annual costs would be about $97.7 million under full implementation.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 64,020,000 97,720,000
Personal Services 0 204,000 210,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 63,816,000 97,510,000
2. Estimated Total Revenues 0 0 0


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


STEM Promise estimated cost includes the funding estimates for the following student populations: - Current PROMISE recipients going through the pipeline. - STEM PROMISE recipients attending public colleges and universities under the current PROMISE qualifying criteria, both those majoring in STEM fields and not majoring in STEM fields. - STEM PROMISE recipients attending independent colleges and universities under the current PROMISE qualifying criteria, both those majoring in STEM fields and not majoring in STEM fields. Other notes regarding the estimates: - The number of students and funding levels for students enrolled in 2-year public state institutions, 4-year public state institutions enrolled in non-STEM majors, and private institutions were estimated based on the 2019-2020 Promise funding. - The total cost for students enrolled in STEM majors at 4-year public state institutions was based on the cost of attendance, adjusted for Pell and West Virginia Higher Education Grant funding received by the student. For students, whose cost of attendance minus Pell and West Virginia Higher Education Grant funding was higher than the average tuition, room and board cost at a public state 4-year institution with a residential campus ($17,916), the funding was estimated at the average tuition, room and board ($17,916) per student. For students, whose cost of attendance minus Pell and West Virginia Higher Education Grant funding was lower than the average tuition, room and board cost at a public state 4-year institution with a residential campus ($17,916), the funding was estimated at the lower cost. - Administrative cost is estimated at $20,000 per 1,000 students receiving funding.



Memorandum






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