Date Requested:January 09, 2014
Time Requested:12:40 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2014R1044 Introduced SB41
CBD Subject: REINTRO2013-57RESIDENT TUITION RATES
FUND(S)
0589,0596
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.

    The purpose of this bill is to create a tuition waiver program, allowing out-of-state students to pay in-state tuition if their parents were graduates of any West Virginia institution of higher education. If only 10% of the annualized FTE non-resident students qualified for the in-state waiver the annual cost in terms of lost tuition and fee revenue for the State’s public colleges and universities would be approximately $12.6 million

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 12,631,000 12,631,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 12,631,000 12,631,000
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    The average non-resident fee differential for a four-year or university degree attending one of West Virginia’s nine state colleges or universities is currently $7,535 and the average non-resident fee differential for a student attending one of West Virginia’s ten community college degree is $4,610. In addition to the State funded institutions, this bill, as written, would also include the State’s private colleges and universities. The staff of the higher education policy commission does not have sufficient information to estimate the impact to each private institution.
    From a budgetary standpoint if the program operates as a true waiver and the tuition loss is not replaced, the loss of $12.6 million per year would be devastating to the schools’ operating budgets. The out-of state tuition and fee revenues fund expanding operational and capital needs. It would be difficult, if not impossible, to meet accreditation requirements, and debt service requirements if revenues were severely curtailed.
    
     Resident Fee Rates 2013-14 Non Resident Fee Rates 2013-14 Differential
    WV Public Higher Education Institutions
    WV Colleges 5,974 12,468 6,494
    WV Universities 6,310 14,706 8,576
    Community Colleges 3,231 7,841 4,610
    
     Annualized Non-Resident FTE 2012-13 Degrees Conferred 2012 Estimated Instate Resident Students 69%
    Non-Resident Enrollment
    WV Colleges and 23,397 12,927 16,144
    WV Universities
    Community Colleges 1,468 4,011 1,013
    Total
    24,865 16,938 17,406
    
    Estimated Lost Revenue based on 10% of Non-resident FTE being the children of parents who graduated from WV Colleges. $12,631,497
    
    16,144 * 7,535 = 121,645,040 * 10% = 12,164,504 West Virginia Higher Education Policy Commission
    1,013 * 4,610 = 4,669,930 * 10% = 466,993 West Virginia Council for Community and Technical College Education
    
    Total = $12,631,497
    
    7,535 average college and university differential
    4,610 average differential West Virginia Council for Community and Technical College Education
    
    2012-13
    Annualized non-resident FTE: 24,865 30.98%
    Annualized resident FTE: 55,391 69.02%
    Total FTE: 80,256
    


Memorandum
Person submitting Fiscal Note:
Ed Magee
Email Address:
emagee@hepc.wvnet.edu