|Date Requested:February 20, 2012
Time Requested:01:44 PM
| FUND(S) |
Sources of Revenue
Legislation creates:A New Program
Effect this measure will have on costs and revenues of state government.
|Senate Bill 663, if enacted, would provide resident tuition rates to nonresident children of West Virginia institution graduates. The cost of this bill would initially be approximately $5.8 million per year and about $16.2 million upon full implementation.|
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||5,800,000||16,200,000|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
It is anticipated that children of West Virginia university graduates receiving the reduced rate in 2013 would have been born in 1982. In 1982 12,130 individuals graduated from West Virginia colleges and universities. It is estimated that about 63.6 percent or 7,715 of these graduates live in other states. The yearly national birth rate for women from the ages of 25-29 was about 12% for these graduates. The estimated number of West Virginia college graduates living in other states multiplied by this birth rate is 926. The college going rate for children of college-educated parents is 84 percent. Multiplying the expected number of children of non-resident West Virginia graduates by this percentage produces an estimated 778 children of West Virginia college graduates who will attend college in fiscal year 2013.Upon full implementation; an estimated 2,167 students per year would receive the reduced rate, based upon a 76 percent attrition rate. The average difference between resident and non-resident rates is $7,453. Multiplying this difference by the anticipated number of children who will attend college produces estimated costs of $5.8 million for fiscal year 2013 and $16.2 million upon full implementation.
|The above calculation assumes that all eligible children of West Virginia graduates will take advantage of the proposed legislation. Children from other years are excluded from the calculation. Self-employed graduates are not included in the calculation of the estimate of graduates who live out of state, Children of West Virginia Graduates who enroll in graduate or professional programs are not considered. The incremental cost of additional enrollments for sub-capacity institutions is not considered.|