FISCAL NOTE
Date Requested: January 11, 2023
Time Requested: 09:03 PM |
| Agency: |
Higher Education Policy Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1399 |
Introduced |
HB2180 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
General
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense, Creates New Program
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 proposed bill establishes Promise Plus program which would award additional funding to students who remain in WV after graduation. Students who receive funding and do not remain in WV will be required to repay the funding based on the number of years they received funding and the number of years in which they do not live in the state immediately after graduation.
The annual additional cost for the Promise Plus program for funding which will not be repaid by students who remain in the state is estimated at $25.5 million. This cost is additional to the current Promise Scholarship annual appropriations.
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 |
25,508,712 |
25,508,712 |
| Personal Services |
0 |
126,940 |
126,940 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
25,381,772 |
25,381,772 |
| 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 estimate is based on the following considerations and assumptions:
- The average number of graduates completing an undergraduate degree who were Promise recipients and their residency within 4 years of graduation.
- If a graduate earned at least $1 in WV, they were considered a resident for that year and the additional funding received through Promise Plus would not have to be repaid.
- The additional tuition cost to be covered by Promise Plus is based on the 2022-2023 tuition cost at each institution.
- The cost of West Virginia community and technical colleges is estimated at the average tuition across all community and technical colleges. Current Promise funding covers tuition cost at the public two-year institutions.
- For students enrolled in four-year institutions, it was assumed that they received four years of funding at that institution.
- The current tuition cost for private colleges and universities range between approximately $15,800 and $32,000. The current estimate for students enrolled in private institutions is set at the highest public institution tuition rate ($9,384).
- Administrative cost is included to cover expenses for student tracking. The cost includes $20,000 per 1,000 students plus an additional position dedicated to Promise Plus administration.
- The estimate calculates the total funding in Promise Plus which will be waived/not repaid because the graduate remained in WV after graduation.
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.
Because the cost of the proposed bill would increase proportionately with any future increases of in-state tuition, total program costs will increase on an annual basis as tuition is increased.
Person submitting Fiscal Note: Robert Wallett
Email Address: robert.wallett@wvhepc.edu