FISCAL NOTE

Date Requested: February 15, 2019
Time Requested: 03:54 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
3080 Introduced HB2882
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 2882, if enacted, would create a health professionals’ student loan program; health sciences tuition program. The bill provides in-state tuition rates to out-of-state medical and osteopathic students who agree to practice for a specific time within West Virginia. The additional costs associated with the enactment of this legislation would be approximately $182,000 in the first year and $730,000 upon full implementation.



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 0 182,000 730,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 182,000 730,000
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


The non-resident fee differential for medical students based on tuition for academic year 2018-2019 for each of the medical schools is detailed on the table below. 2018-2019 Tuition and Fees for Medical Schools in West Virginia Marshall University Joan C. Edwards School of Medicine Resident Tuition $22,154.00 Non-Resident Tuition $52,542.00 Difference $30,388.00 West Virginia School of Osteopathic Medicine Resident Tuition $21,472.00 Non-Resident Tuition $52,710.00 Difference $31,238.00 West Virginia University School of Medicine Resident Tuition $31,023.00 Non-Resident Tuition $60,642.00 Difference $29,619.00 Based on the text of the bill as it stands today, there are two scenarios on how students could be funded. The first scenario would supply funding for two students a year at each medical school and once the student is funded, they count towards one of the school’s two students for the remainder of medical school. Assuming that all recipients are selected in their first year of medical school, the costs would be about $182,490.00 per year and fund six students. Assuming all students complete the program, a total of 12 students would be funded at the end of eight years. Each year, the waiver amount would need to be adjusted based on the total cost of tuition and fees at each institution. The model also assumes that all students fulfill the program requirements. If students participating in the program decide to practice in another state or in a non-qualifying area, repayment with interest will be made to the program and be used to fund other waivers. Funding Scenario 1 Year Waiver Amount Total Number of Students Funded Each Year 1 $182,490.00 6 2 $182,490.00 6 3 $182,490.00 6 4 $182,490.00 6 5 $182,490.00 6 6 $182,490.00 6 7 $182,490.00 6 8 $182,490.00 6 The second scenario would supply funding for two students at each medical school, but once the student is funded, they continue in the program for the remainder of medical school but the student’s school is able to continue adding two addition students in subsequent years. Assuming that all recipients the first year are in their first year of medical school and that all students added after were also in their first year, the costs would be $182,490 for the first year and would increase as indicated on the table below in subsequent years until the first cohort of participants complete their fourth year and are replaced by a new cohort of participants. After four years, the costs of the program would be approximately $729,960.00 per year. Assuming all students complete the program, a total of 48 students would be funded at the end of eight years. Each year, the waiver amount would need to be adjusted based on the total cost of tuition and fees at each institution. The model also assumes that all students fulfill the program requirements. If students participating in the program decide to practice in another state or in a non-qualifying area, repayment with interest will be made to the program and be used to fund other waivers. Funding Scenario 2 Year Waiver Amount Total Number of Students Funded Each Year 1 $182,490.00 6 2 $364,980.00 12 3 $547,470.00 18 4 $729,960.00 24 5 $729,960.00 24 6 $729,960.00 24 7 $729,960.00 24 8 $729,960.00 24



Memorandum






    Person submitting Fiscal Note: Ed Magee
    Email Address: edward.magee@wvhepc.edu