Date Requested:March 04, 2009
Time Requested:05:30 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2009R2474 Introduced SB480
CBD Subject: YELLOW RIBBON GI EDUCATION ENHANCEMENT PROGRAM
FUND(S)
Tuition & Required Education & General Fees
Sources of Revenue
Other Fund Tuition
Legislation creates:
A New Program

Fiscal Note Summary

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

    Fiscal Note: $500,000 in foregone educational and general revenue.
    
    This bill is similar to SB 245 and HB 2335 for which staff previously provided a $500,000 fiscal note. The additional language covering students of military parents serving outside of West Virginia would provide no additional benefit and thus creates no additional fiscal note.
    
    Original Bill. SB 245 and HB 2335 would require public institutions of higher education to enter into an agreement with the U.S. Secretary of Veterans Affairs that effectively allows post- 9/11 non-resident veterans to receive free tuition and fees.
    
    Under the federal legislation, all veterans, regardless of whether they are resident or non-resident students receive an amount equal to the public institution’s resident tuition rate. The federal legislation creates an optional matching program under which federal government would cover 50% of the difference between the resident and non-resident rates if an institution covers the remaining 50% of the difference, which is the subject of this legislation.
    
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2009
Increase/Decrease
(use"-")
2010
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 -500,000 -500,000
3. Explanation of above estimates (including long-range effect):
    Assuming that no additional non-resident veterans enrolled in public institutions of higher education, it would cost institutions approximately $385,000 in forgone tuition and fees to provide this benefit. Additionally, it should be assumed that this new program will encourage more non-resident veterans to attend public institutions of higher education. An estimated 30% increase would cost institutions an additional $115,000. As tuition and enrollment of eligible non-resident veterans increase, the amount of tuition waivers will increase at the institutions.
    
    Finally, it should be noted that the federal matching program would produce $385,000 in new federal revenue to support veterans. This, however, does not mean that public institutions of higher education will receive that additional amount because institutions otherwise would have received the difference from the veteran.
    


Memorandum
Person submitting Fiscal Note:
Terry Hess
Email Address:
hess@hepc.wvnet.edu
    This Bill. As explained above, this bill would add certain spouses and children to whom Yellow Ribbon GI bill benefits have been transferred to the pool of those eligible for coverage of the difference between resident and non-resident tuition rates. These students, however, are considered state residents for tuition and fee purposes and thus could not benefit from having the difference between resident and non-resident tuition and required fees covered.