FISCAL NOTE

Date Requested: February 14, 2023
Time Requested: 08:20 AM

3757	Introduced	HB3408
Agency:	Education, WV Department of
CBD Number:	Version:	Bill Number:	Resolution Number:
CBD Subject:	Education (Higher)

FUND(S):

0313

Sources of Revenue:

General Fund N/A

Legislation creates:

Fiscal Note Summary

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

There is no additional estimated cost to the State under the Public School Support Plan (PSSP). However, the proposed changes to W. Va. Code §18-9A-25(a), regarding how the Department of Education (the Department) determines the annual appropriation request, could result in increased annual appropriations until such time as the Hope Scholarship Program (the Program) is expanded to all West Virginia students. The Department cannot project whether the proposed legislation would have an impact on annual appropriation requests between now and full implementation of the Program because we do not know how the Hope Scholarship Board (the Board) would estimate the total number of applications for a particular fiscal year. The Department suggests that the Legislature contact the Hope Scholarship Board and/or Office of the West Virginia Treasurer for such an analysis.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2023 Increase/Decrease (use"-")	2024 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	0	0
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):

Under the proposed legislation, the Department shall include in its budget request, and the Governor shall include in each budget bill submitted to the Legislature, an appropriation to the Department of Education for the greater of an amount not less than two percent (2%) of net public school enrollment adjusted for state aid purposes or the total number of estimated Hope Scholarship applications for the fiscal year multiplied by the prior year’s statewide average net state aid allotted per pupil. For fiscal years 2022-23 and 2023-24, the appropriation requests have been based upon two percent (2%) of net public school enrollment adjusted for state aid purposes. Since the proposed legislation is not revising the timetable at which the Program will be expanded to all West Virginia students, we believe that the appropriation requests for 2022-23 and 2023-24 will be sufficient for funding scholarships for eligible students in those fiscal years. However, the proposed legislation will allow the Board to estimate a total number of applications rather than using the actual number of applications received. This change would allow for more timely increases in the annual funding requests as we approach the full expansion year (fiscal year 2026-27). As currently provided in the statute, unused balances on-hand would be available to reduce future appropriation requests. Therefore, the Department believes the proposed legislation would only result in a timing difference and would have no additional fiscal impact on the State’s budget than is already expected at full implementation of the Program.

Memorandum

Under §18-8-1b of the proposed legislation, it appears the instructor is required to submit similar evidence to the county superintendent and/or county board of education, as referenced in the aforementioned paragraph. §18-31-9(c) of the proposed legislation authorizes the Board to “contract with independent auditors to complete audits authorized in §18-31-9 of this code.” However, there are no audits required in the referenced section of code (§18-31-9). We believe that reference should be changed to state “audits authorized in §18-31-10,” which is the section of the code dealing with auditing of the Program (both individual accounts and education service providers).

Person submitting Fiscal Note: Samuel E. Pauley
Email Address: sepauley@k12.wv.us