FISCAL NOTE
Date Requested: February 16, 2023
Time Requested: 01:17 PM |
| Agency: |
Higher Education Policy Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3462 |
Introduced |
HB3371 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
General
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.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The purpose of this bill is to require the state to utilize the full federal matching requirements for WVU and WVSU.
This bill designates West Virginia University as the beneficiary of appropriations under the 1862 act of Congress and West Virginia State College University as the beneficiary of appropriations under the 1890 act of Congress and requires the State of West Virginia to maximize the full federal matching requirement through a separate line-item appropriation for each of the two institutions.
Currently, the State does not separate a land grant match appropriation for West Virginia University (WVU). However, WVU uses part of its annual state appropriation for land grant mission work. The amount of this annual land grant mission work exceeds the federal land grant amount received. The annual amounts of these grants for the past 10 years have been as follows (base on audited financial statements):
West Virginia University
Fiscal Year Federal Land Grants State Appropriations
2022 $9,132,000 $165,737,946
2021 $8,390,000 $200,217,820
2020 $7,457,000 $183,043,491
2019 $6,937,000 $180,233,714
2018 $8,660,000 $175,173,304
2017 $7,871,000 $181,610,645
2016 $8,055,000 $181,592,000
2015 $8,140,000 $192,917,142
2014 $8,130,000 $193,991,938
2013 $7,596,000 $211,060,964
Since WVU uses annual state appropriations as its match for the annual federal land grant, making the Land Grant Appropriation Match a separate annual appropriation from the state would not require additional total appropriation but would result in a re-apportioning of the total amount received from the state. Thus, there would be no fiscal impact for WVU.
However, West Virginia State University (WVSU) does receive a separate land grant match appropriation from the State. This appropriation has been less than the Federal Land Grant Award by an average of $1.1 million over the past 10 years.
West Virginia State University
Fiscal Year Federal Land Grant Award State Land Grant Match Difference
2013 $2,750,405 $2,158,000 -$592,405
2014 $2,917,371 $1,908,000 -$1,009,371
2015 $2,917,371 $1,673,390 -$1,243,981
2016 $2,850,052 $1,583,721 -$1,266,331
2017 $2,943,437 $1,553,248 -$1,390,189
2018 $2,946,383 $1,584,947 -$1,361,436
2019 $3,036,119 $1,586,340 -$1,449,779
2020 $3,532,526 $2,950,192 -$582,334
2021 $3,846,516 $2,950,192 -$896,324
2022 $4,130,983 $2,950,192 -$1,180,791
Total -$10,972,941
Average Difference -$1,097,294
Thus, our estimate of cost for WVSU matching State Appropriation is an increase of $1.1 million. The Federal Land Grant Award has generally increased each year an average of 5% each year for WVSU and 2% for WVU.
In summary, to make a WVU Matching Land Grant Appropriation would require a reallocation of existing State Appropriations for WVU with the matching amount expected to increase about 2% each successive fiscal year. The WVSU Matching Land Grant Appropriation would require an average increase of $1.1 million with an additional 5% each successive fiscal year.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
1,100,000 |
1,100,000 |
| 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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
The amount of the Federal Land Grant Award for WVU and WVSU varies from year to year, thus, the amount of the State matching appropriation would also vary. This variance has generally resulted in increased awards over time.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Robert Wallett
Email Address: robert.wallett@wvhepc.edu