FISCAL NOTE
Date Requested: February 28, 2019
Time Requested: 11:46 AM |
| Agency: |
Treasurer's Office, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3370 |
Introduced |
SB670 |
|
|---|
| CBD Subject: |
Education (Higher) |
|---|
|
FUND(S):
Special Revenue
Sources of Revenue:
Special Fund
Legislation creates:
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 expand the use of the College Prepaid Tuition and Savings Program to include private or religious, primary, middle, or secondary schools. The bill makes changes to the Board membership by adding the State Superintendent of Schools or his or her designee, changing one member from the West Virginia Association of Private Colleges to two from West Virginia Colleges and Universities, and removing the two member representing the public. In addition, the bill amends the exemption from Chapter 32 for the Program to just Article 1 of Chapter 32.
Revisions in the bill will not affect the staffing or operating costs of the Program.
As to the tax impact, below is a statement from Mark Muchow, Deputy Cabinet Secretary of the West Virginia Department of Revenue.
The following represents a summary of our analysis related to the Section 529 changes as incorporated in the Federal Tax Cuts and Jobs Act as provided last year in response to questions from Rating Agencies regarding the State’s response to federal tax reform.
• Provisions expanding the use of Section 529 education savings accounts for private elementary and secondary education will likely result in at least a doubling of current Section 529 contributions in West Virginia. The State offers an income tax deduction for such contributions. The current annual cost of this deduction is roughly $2.3 million with the prospect of such cost at least doubling in TY2018.
Mr. Muchow advised our staff that the above estimate was already built into the revenue estimates and that Senate Bill 670 will cause no additional fiscal impact to the State.
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 |
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 |
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.
See Fiscal Note Summary above.
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.
See Fiscal Note Summary above.
Person submitting Fiscal Note: Diana Stout
Email Address: diana.stout@wvsto.com