FISCAL NOTE
Date Requested: March 18, 2017 Time Requested: 09:44 AM |
Agency: |
Higher Education Policy Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3168 |
Introduced |
SB651 |
|
CBD Subject: |
Education (Higher) |
---|
|
FUND(S):
0589
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.
Senate Bill 651, if enacted, would require the Higher Education Policy Commission to undertake all measures necessary to transfer the ownership of the West Virginia Regional Technology Park in South Charleston, West Virginia, to the governing board of Marshall University by July 1, 2018. Upon the transfer of ownership, the governing board of the university would be required to manage the development and participation in the Regional Technology Park in a manner whereby fifty percent or more of the investment and funding for the operation, administration and additional development of the facility would originate from private sources. In addition, the bill would require the Higher Education Policy Commission to research and investigate the potential for acquiring an interest in the I-79 Technology Park on behalf of West Virginia University for development and management that would result in either inclusion within the WVU Center for Economic Development and Technology Advancement, a separate public-private partnership, or other form of development and technology institution directly affiliated with the university.
For the year ended June 30, 2016, more than 75 percent of the West Virginia Regional Technology Park’s operating revenues originated from private sources. Currently about 25 percent of the employees are supported by public funds, the majority of whom work for BridgeValley Community and Technical College which occupies space in the park.
In the summer of 2016, the owner of the I-79 Technology Park, the West Virginia High Technology Consortium Foundation and its HT Foundation Holdings, Inc. filed for Chapter 11 bankruptcy reorganization. In the filing, the consortium listed creditors between one and 49; assets between about $10 million and $50 million; and estimated liabilities between about $10 million and $50 million. At the time of the filing, Jim Estep, the Foundation President and CEO, blamed financial problems on the occupancy rate dropping over the past few years — from about 75 percent to 39 percent — in the I-79 Technology Park facilities financed by Huntington National Bank.
No additional costs are anticipated from the transfer of the West Virginia Regional Technology Park to Marshall University. It is estimated that study required by this proposed legislation would cost about $100,000.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2017 Increase/Decrease (use"-") |
2018 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
100,000 |
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
Person submitting Fiscal Note: Ed Magee
Email Address: edward.magee@wvhepc.edu