FISCAL NOTE
Date Requested: January 09, 2019 Time Requested: 03:16 PM |
Agency: |
Higher Education Policy Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1447 |
Introduced |
HB2059 |
|
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 2059, if enacted, would increase PROMISE scholarships to persons majoring in STEM (Science, technology, engineering and mathematics) fields to pay the full cost of tuition, room and board.
The initial annual cost of this legislation would be approximately $17.4 million. Upon full implementation, the annual additional costs would be about $49.9 million.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2019 Increase/Decrease (use"-") |
2020 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
17,405,694 |
49,877,528 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
17,405,694 |
49,877,528 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
STEM Promise estimated cost includes the funding estimates for the following student populations:
- Current PROMISE recipients going through the pipeline.
- STEM PROMISE recipients attending public colleges and universities
under the current PROMISE qualifying criteria, both those majoring in
STEM fields and not majoring in STEM fields.
-
STEM PROMISE recipients attending independent colleges and
universities under the current PROMISE qualifying criteria, both those
majoring in STEM fields and not majoring in STEM fields.
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 under the current rate of up to $4,750 per year.
- 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.
Students who qualify for new STEM PROMISE Scholarship are:
- Students who would meet the current PROMISE qualifications for initial
award and renewal.
- Students who major in STEM fields, including those designated as pure
STEM, broader STEM fields, and Technology STEM receive an award up to
the full tuition and fees, room and board.
- Students who do not major in STEM fields receive an award up $4,750
but does not exceed full tuition and fees.
Total funding and number of student recipients of the STEM PROMISE Scholarship were estimated based on the following assumptions:
- Number of students enrolling in public institutions (two-year and four
-year) was estimated on the three-year average number of current
PROMISE scholars.
-
Number of students who major in a STEM field is calculated as three-
year average based on the current PROMISE cohort data.
-
Administrative cost is estimated at $20,000 per 1,000 students
serviced. Administrative cost is associated with ensuring student
initial and renewal eligibility monitoring.
-
All students attending four-year public institutions and majoring in
STEM fields were assumed to be charged room and board.
- Estimated cost for recipients attending two-year public institutions
was calculated as the average tuition at community and technical
colleges for 2017 ($3,936).
- Estimated cost for recipients attending four-year public institutions
and majoring in a STEM field was calculated as the average tuition and
room and board charges at public four-year colleges and universities
for 2017 ($15,935).
- Estimated cost for recipients attending four-year public institutions
and NOT majoring in a STEM field was calculated as current maximum
PROMISE award ($4,750).
- Estimated cost for recipients attending independent institutions,
regardless of their field of study was calculated as current maximum
PROMISE award ($4,750).
Memorandum
Person submitting Fiscal Note: Ed Magee
Email Address: Edward Magee