FISCAL NOTE
Date Requested: February 07, 2018
Time Requested: 02:11 PM |
| Agency: |
Higher Education Policy Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2454 |
Introduced |
HB4466 |
|
|---|
| 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 4466, if enacted, would increase PROMISE scholarships to persons majoring in science, technology, engineering, and mathematics (STEM) fields to pay the full cost of tuition, room and board. It is estimated that the total cost for the initial year would be approximately $8.4 million. Upon full implementation, it is anticipated that the cost would be about $19.4 million.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
8,400,000 |
19,400,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
8,400,000 |
19,400,000 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Students included in the estimate meet the following criteria if they:
• were first time, full-time freshmen with a designated major in STEM;
• were enrolled in STEM fields, which included those designated as pure STEM, broader STEM fields, and Technology STEM;
• had a financial aid record submitted by the postsecondary institution they attended;
• received PROMISE in at least one semester of each academic year; and
• demonstrated unmet need based on their tuition and financial aid award.
Unmet need was calculated as the difference between the estimated student tuition as well as any room and board charges less any federal and state financial aid. For years 2 through 4 of each cohort students were included only if they continued enrollment in a STEM field and received a PROMISE award.
Estimates are based on the 2014 through 2017 PROMISE cohorts. The 2017 Promise cohort was based on all first time, full-time freshmen, who were majoring in STEM fields; qualified for the PROMISE Scholarship; and were awarded the PROMISE scholarship. Because financial aid data were not available for the most current year, the unmet need estimates were calculated based on the average proportion of enrolled students with unmet need who majored in STEM. Further changes in average awards were utilized to estimate per student unmet need for each year.
Memorandum
If Federal and state grants do not reduce the amount of the award, the initial cost would increase to $10.6 million in the first year and $23.3 million upon full implementation.
Person submitting Fiscal Note: Ed Magee
Email Address: edward.magee@wvhepc.edu