FISCAL NOTE
Date Requested: March 15, 2021
Time Requested: 11:47 AM |
| Agency: |
Higher Education Policy Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2834 |
Introduced |
HB3150 |
|
|---|
| CBD Subject: |
Education (Higher) |
|---|
|
FUND(S):
General
Sources of Revenue:
General Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
House Bill 3150, if enacted, would cap fees and in-state tuition to a 1% yearly increase for all institutions of higher education in the State of West Virginia which receive state funding.
Based upon current annual resident tuition and fee revenue of approximately $245 million at West Virginia’s public colleges and universities, it is estimated that a 1% increase in in-state tuition rates would generate approximately $2.5 million in additional tuition and fee revenues, assuming that enrollment levels remain stable.
West Virginia’s Public Colleges increased in-state tuition and fee rates about 2% in FY 2019 and FY 2020. According to the Commonfund’s calculation of the Higher Education Price Index (HEPI), the average annual increase in higher education costs were 4.63% from 1961 to 2020 and 2.52% from 2010 to 2020.
Assuming that enrollments remain constant, and the revenues from other sources, including state appropriations, increase 2.5% annually, the costs covered by in-state tuition and fee revenues would increase about $6.1 million. Assuming institutions would increase tuition and fees 2% without a cap, the resulting annual shortfall related to the tuition and fees cap would be about $2.5 million.
This estimate pertains only to state institutions of higher education.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| 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 |
-2,500,000 |
-2,500,000 |
Explanation of above estimates (including long-range effect):
Memorandum
Person submitting Fiscal Note: Ed Magee
Email Address: edward.magee@wvhepc.edu