FISCAL NOTE
Date Requested: February 13, 2021
Time Requested: 11:54 AM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2560 |
Introduced |
HB2013 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
0317
Sources of Revenue:
General Fund
Legislation creates:
Creates New Program, Creates New Fund: WV Hope Scholarship Prog. Trust Fund, WV Hope Schol. Prog. Expense Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The estimated cost to the State under the Public School Support Plan (PSSP) to establish the Hope Scholarship Program is $23,667,486. This cost will be for the 2022-23 year.
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 |
0 |
23,667,486 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
23,667,486 |
| 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):
The proposed legislation provides an annual allocation to the West Virginia Department of Education (WVDE) in an amount equal to the greater of no less than two percent of net public school enrollment adjusted for state aid purposes or the total number of eligible Hope Scholarship applicants received by the Treasurer, if available, multiplied by the prior year's statewide average net state aid allotted per pupil. Because there are currently no Hope Scholarship applicants, two percent of the fiscal year (FY) 21 net public school enrollment adjusted for state aid purposes, used to calculate the FY22 state aid funding computations, was used to calculate the estimated cost of the Hope Scholarship Program for FY23, which is the year of implementation under the proposed legislation.
The total estimated cost to the State under the Public School Support Plan (PSSP) for the proposed legislation is $23,667,486. The actual cost for FY23 will be based on actual student enrollment for the 2021-22 school year and final state aid per pupil amount for 2021-22, which are unknown at this time. The total estimated cost under PSSP, based on the most recent data available, is calculated as follows:
FY21 Net Enrollment Adjusted for State Aid Purposes 255,903.84
2% of Net Enrollment 5,118.08
FY21 State Aid Per Pupil 4,624.29
Estimated Hope Scholarship Cost at 2% 23,667,486
As mentioned previously, this cost would be for FY23 and would essentially be a one-time cost to the State. After current public school students would begin participating in the Hope Scholarship program, they would no longer be counted in public school enrollment and the county boards of education would no longer receive state aid funding for those students. Under the PSSP, state aid funding is based on the prior year enrollment, so there is essentially a one-year lag before the other PSSP appropriations would be reduced to offset the Hope Scholarship appropriation amount. However, please note that not all steps of the PSSP are based on student enrollment so the subsequent reduction in the other PSSP appropriations may not equal the full cost for the Hope Scholarship program.
Note that in any year in which the number of applicants would exceed two percent of net public school enrollment adjusted for state aid purposes, there would be an additional cost to the State for that specific year until the funding formula would naturally adjust for the reduced public school enrollment.
Memorandum
Based on the introduced language for the legislation, current private and home school students would not be eligible. Under the definition of “eligible recipient” in §18-31-2, it says the child must be (1) a resident of the state and (2) enrolled in a public elementary or secondary school program in this state at the time of application, or is eligible or otherwise required to enroll in a kindergarten program.
There are approximately 22,250 combined current private and home school students based on the latest data available. If those students were eligible for the Hope Scholarship Program, it would increase the estimated cost for the Hope Scholarship Program by an additional $102,890,453. The State is currently providing no funds for those students under PSSP, so this would be an additional cost to the State.
Note that the language quoted above that requires a student to be enrolled in public school at the time of application for the Hope Scholarship program does not establish a minimum period of time for the student to attend public school to become eligible. This would potentially allow current private and home school students to enroll in public school solely for the purpose of applying for the Hope Scholarship program. Since those students are not currently funded under PSSP, if they enroll and become eligible for the program, there would be no offsetting reduction under the other provisions of PSSP for those students.
Person submitting Fiscal Note: Melody Cochran
Email Address: melody.cochran@k12.wv.us