FISCAL NOTE
Date Requested: January 14, 2023
Time Requested: 04:13 PM |
| Agency: |
Higher Education Policy Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2196 |
Introduced |
HB2504 |
|
|---|
| 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.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The bill proposes to amend the current Promise scholarship program to require Promise recipients to repay the scholarship if the student is not employed within West Virginia for at least two of the first three years following graduation.
The proposed amendment would increase the costs of State government in that it would necessitate additional annual costs of administering the Promise scholarship program, which is estimated at $365,000.
Although this bill will result in additional administrative expenses, it will also result in the repayment of funds that were awarded to students not meeting in-state employment requirements. We cannot determine the amount that will be repaid by students not meeting in-state employment requirements, but these funds will be returned to the PROMISE fund and redistributed as awards to other students.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
365,000 |
365,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| 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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
The estimate is based on the following considerations and assumptions:
- The current cost for ECSI Services, the agency’s student loan servicer, to track students relative to repayment is about $21,500 per 1,000 students.
- The total number of graduates to be tracked over three graduating cohorts is estimated at 10,000.
- Because of the high number of graduates who would need to be tracked if the bill passes, the agency will need to create additional positions to manage the repayment aspect of the Promise scholarship program.
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: Robert Wallett
Email Address: robert.wallett@wvhepc.edu