|Date Requested:February 15, 2013
Time Requested:09:53 AM
| FUND(S) |
Sources of Revenue
|General Fund,Special Fund|
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| House Bill 2090, if approved would allow the Higher Education Policy Commission rule-making authority to redeem or secure repayment of Promise Scholarships Funds from students who withdraw or drop classes after the end of the add/drop period.
According to HB 2090, if a student receiving Promise Scholarship funds withdraws or drops a class after the end of the add/drop period, the per credit hour cost of the course will be taken from the student's Promise award for the following term or semester. The bill language further states that if a student graduates or fails to return to school, repayment shall be made directly to the Higher Education Policy Commission. Costs associated with the Promise Scholarship would be reduced approximately $380,253.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||-380,253||-380,253|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
HEPC staff report that there are currently 9,748 students who are currently receiving PROMISE Scholarships, 8,702 of which are enrolled at West Virginia public institutions. Of these students, there are currently 136 enrolled full-time whose credit hours are reported as being less than 12. The associated credit hours dropped for these 136 students are 1,501; therefore, the dollar amount that could be deemed for repayment by the PROMISE Scholarship recipients is estimated at $237,658 per semester or $475,316 per academic year. This estimate is derived from a per credit hour award of $158.30 which is calculated by dividing the PROMISE block award of $4,750 by the 30 credit hours per year it covers. It is estimated that collection costs would equal about 20% of the amount to be repaid or $95,063. These collection costs would reduce the amount realized from repayments to $380,253.