FISCAL NOTE
Date Requested: February 13, 2024
Time Requested: 03:48 PM |
| Agency: |
Treasurer's Office, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1869 |
Introduced |
HB5664 |
|
|---|
| CBD Subject: |
Juveniles |
|---|
|
FUND(S):
New
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Expense, Creates New Program, Creates New Fund: Mountaineer Scholars Grant Program Account
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The proposed legislation requires the State Treasurer to establish a grant program as part of the College Savings Program to be known as the Mountaineer Scholars Grant Program and requires that the Treasurer allocate $100 to each child born a resident of West Virginia.
The State of Pennsylvania currently administers a similar program and after meetings with representatives from the Pennsylvania Treasurer's Office, the STO is able to estimate the following costs: one time implementation costs of approximately $447,800 that will cover marketing, one time licensing fees, and initial implementation legal costs that would be paid to a third-party vendor to implement the program.
Additionally, once the program was up and running, the STO is able to estimate the total cost of the program to be approximately $2,433,220 annually. $1,710,000 is the cost to fund the $100 deposit for each child born a resident of the state. Data from the Department of Human Services estimates that approximately 17,100 children are both each year in the state of West Virginia. 17,100 x $100 = $1,710,000. Also, the STO estimates it will require one additional FTE in the amount of $79,000 to assist in the administration of this program. This estimate includes the salary, benefits, and other associated costs for the additional employee. Additionally, the Treasurer's Office estimates spending approximately $280,000 annually to market the program to families. Finally, the third-party vendor charges an approximately $30,720 monthly subscription fee and an additional annual cost of approximately $325,000 to cover legal, auditing, marketing, banking, and accounting ongoing costs.
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 |
2,881,020 |
2,433,220 |
| Personal Services |
0 |
79,000 |
79,000 |
| Current Expenses |
0 |
2,802,020 |
2,354,220 |
| 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):
This fiscal note assumes that the program will operate in a similar manner to the Pennsylvania Keystone Scholars Program. The actual costs could vary as the details of the program and finalized.
Memorandum
Person submitting Fiscal Note: James Fuerhoff
Email Address: james.fuerhoff@wvsto.gov