FISCAL NOTE

Date Requested: January 09, 2019
Time Requested: 03:16 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
1447 Introduced HB2059
CBD Subject: Education (Higher)


FUND(S):

0589

Sources of Revenue:

General Fund

Legislation creates:

Creates New Expense



Fiscal Note Summary


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


House Bill 2059, if enacted, would increase PROMISE scholarships to persons majoring in STEM (Science, technology, engineering and mathematics) fields to pay the full cost of tuition, room and board. The initial annual cost of this legislation would be approximately $17.4 million. Upon full implementation, the annual additional costs would be about $49.9 million.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 17,405,694 49,877,528
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 17,405,694 49,877,528
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. The estimates are calculated based on the following assumptions for current PROMISE recipients: - Current PROMISE recipients continue to receive their current scholarship award until the completion of the 4th year of the most recent PROMISE cohort under the current rate of up to $4,750 per year. - The estimates of the number of POPMISE Scholars each year and the total funding is calculated as the three-year average based on the latest data available. Students who qualify for new STEM PROMISE Scholarship are: - Students who would meet the current PROMISE qualifications for initial award and renewal. - Students who major in STEM fields, including those designated as pure STEM, broader STEM fields, and Technology STEM receive an award up to the full tuition and fees, room and board. - Students who do not major in STEM fields receive an award up $4,750 but does not exceed full tuition and fees. Total funding and number of student recipients of the STEM PROMISE Scholarship were estimated based on the following assumptions: - Number of students enrolling in public institutions (two-year and four -year) was estimated on the three-year average number of current PROMISE scholars. - Number of students who major in a STEM field is calculated as three- year average based on the current PROMISE cohort data. - Administrative cost is estimated at $20,000 per 1,000 students serviced. Administrative cost is associated with ensuring student initial and renewal eligibility monitoring. - All students attending four-year public institutions and majoring in STEM fields were assumed to be charged room and board. - Estimated cost for recipients attending two-year public institutions was calculated as the average tuition at community and technical colleges for 2017 ($3,936). - Estimated cost for recipients attending four-year public institutions and majoring in a STEM field was calculated as the average tuition and room and board charges at public four-year colleges and universities for 2017 ($15,935). - Estimated cost for recipients attending four-year public institutions and NOT majoring in a STEM field was calculated as current maximum PROMISE award ($4,750). - Estimated cost for recipients attending independent institutions, regardless of their field of study was calculated as current maximum PROMISE award ($4,750).



Memorandum






    Person submitting Fiscal Note: Ed Magee
    Email Address: Edward Magee