FISCAL NOTE
Date Requested: January 15, 2020
Time Requested: 05:29 PM |
| Agency: |
Higher Education Policy Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2472 |
Introduced |
HB2065 |
|
|---|
| CBD Subject: |
Actions, Suits and Liens |
|---|
|
FUND(S):
General Revenue
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 2065, if enacted, would create a new scholarship available to all West Virginians upon graduation from high school that remain in West Virginia to pursue an associate or bachelor’s degree of $10,000 per year.The only academic requirement is that the person have a 2.0 GPA, and graduate in no more than four years for an undergraduate degree or two and a half years for an associate degree; if the recipient, after graduation, stays and has full-time employment in West Virginia, repayment is forgiven on a year-to-year basis; if the person does not graduate or leaves the state after graduation, or fails to get a full-time job, the scholarships are converted to student loans and must be repaid.
The initial annual cost of this legislation would be approximately $55.7 million. Upon full implementation, the annual costs would be about $155.5 million.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
55,677,000 |
155,533,000 |
| Personal Services |
0 |
316,000 |
412,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
55,361,000 |
1,555,121,000 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Current PROMISE Recipients
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.
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.
New Promise for All Recipients
Students who qualify for the new Promise for All Scholarship are:
Considered in-state residents based on tuition and fees being changed
Enrolled as full-time or part-time students in a public or an independent
postsecondary institution
Enrolled as first time freshmen within two years of high school graduation in the
fall, spring, or summer semesters
Qualified for renewal given that they maintain 2.0 cumulative GPA
Total funding and number of student recipients of the PROMISE for All Scholarship
were estimated based on the following assumptions:
Number of students enrolling in public institutions (two-year and four-year) and
independent institutions are estimated based on the three-year average of the
latest available data
85% of the qualifying students will accept the award based on the past PROMISE
yield rate.
Student retention for students who return the following years and maintained 2.0
or higher cumulative GPA was estimated based on the three –year average for the
latest cohort data available. Retention from year 1 to year 2 was estimated for
two-year public institutions and retention from year 1 to year 2, year 1 to year
3, and year 1 to year 4 was estimated for four-year public institutions. The
retention for students attending independent institutions was assumed to be the
same as the public four-year institutions.
Administrative cost is estimated at $20,000 per 1,000 students serviced.
Administrative cost is associated with ensuring student initial and renewal
eligibility as well as tracking student employment and repayment restrictions.
Two – Year Public Institution Estimates
Estimated cost for full-time students attending two-year public institutions was
calculated as the average tuition at community and technical colleges for 2017
($3,936). No room and board was included in the estimated funding for students
attending two-year public institution.
Estimated cost for part-time students attending two-year public institutions was
calculated as the average tuition at community and technical colleges for 2017
prorated for the average number of credits attempted per year (14) for a total of
$2,296. No room and board was included in the estimated funding for students
attending two-year public institution.
Retention from year 1 to year 2 for students attending two-year public colleges
was calculated as the three-year average retention for students attending
community and technical colleges and maintaining 2.0 or higher cumulative GPA
available for the last three cohorts.
Separate retention rates are calculated for full-time and part-time students.
Four-Year Public Institution Estimates
Estimated cost for full-time students attending four-year public institutions was
calculated as the average tuition and room and board at public four-year colleges
and universities for 2017 ($15,935). Since the proposed scholarship allows for
awards up to $10,000, that rate was used in the calculations for estimating the
cost.
Estimated cost for part-time students attending four-year public institutions was
calculated as the average tuition at public four-year colleges and universities
for 2017 ($7,212) prorated for the average number of credits attempted per year
(11) for a total of $3,305. No room and board was included in the estimated
funding for students attending four-year public institutions part-time.
Retention from year to year for students attending four-year public colleges and
universities was calculated as the three-year average retention for students
attending public institutions who reenrolled and maintained cumulative GPA of 2.0
or higher in the last three cohorts.
Separate retention rates are calculated for full-time and part-time students.
Independent Institutions Estimates
Estimated cost for full-time students attending independent institutions was
calculated as the proposed scholarship award of $10,000 since the tuition and fees
and room and board rates are higher than $10,000.
Retention from year to year for students attending independent colleges and
universities was calculated as the three-year average retention for students
attending public institutions who reenrolled and maintained cumulative GPA of 2.0
or higher in the last three cohorts. Retention rates for students attending
independent institutions are not available at this time.
Memorandum
Person submitting Fiscal Note: Ed Magee
Email Address: edward.magee@wvhepc.edu