Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

H.B. 3243, if approved would broaden the definition of deceased members of the armed forces to include members of the reserve components called to active duty (at any time) by the President of the United States under Title 10 of the United States Code for the purpose of entering into armed combat; and remove the requirement that the children attend a state education or training institution. According to the National Guard, (2) West Virginia National Guardsmen have been killed and (10) active duty soldiers during the recent call to duty. Most of the recently killed soldiers do not have children old enough to participate in this benefit, so the fiscal impact from these deceased soldiers would occur in later years.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2005 Increase/Decrease (use"-")	2006 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):

Memorandum

H.B 3243 does not have the same language as the substitute bill for S.B. 126 has regarding additional statute changes: increases the age limitation (from 22 to 25); clarifies eligibility requirements; and increases scholarship amounts from $500 up to $2000 per year per child. Because these changes are not specified, this fiscal note did not include the estimates provided in S.B. 126 fiscal note which are provided below. It should be noted when talking with personnel at Veterans Affairs, many eligible children have been unable to take advantage of the current benefit (which did not include amounts over and above tuition waivers) because of financial hardships. It is estimated that there would be increased use of this benefit both because of the additional scholarship amounts and allowing non-state higher education institutions to become eligible institutions. It is not possible to project future casualties or the number of children that might take advantage of this legislation. Currently the program has 14 children attending college and using this benefit. Assuming that participants doubled and that both existing and new participants would each receive $2,000, then the total fiscal year costs would be 28 x $2,000 = $56,000. This estimate is conservative and full financial impact would not be realized until future years when recently deceased soldiers’ children become eligible for this benefit. It should also be noted that the average cost of regular tuition and fees that would be waived for an in-state, full-time undergraduate student for Academic Year 2005 is approximately $3,300 per student – this amount is covered by the public institution and has no direct fiscal cost to the state.

Person submitting Fiscal Note: Patricia Hunt
Email Address: phunt@hepc.wvnet.edu