FISCAL NOTE
Date Requested: February 07, 2020 Time Requested: 10:49 AM |
Agency: |
Higher Education Policy Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1391 |
Introduced |
HB4750 |
|
CBD Subject: |
Education (Higher) |
---|
|
FUND(S):
General Revenue
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The House Bill 4750 if enacted, would create the Katherine Johnson College Award Program and establish a supporting fund, the Katherine Johnson College Award for West Virginia Regional Higher Education Fund, to provide last-dollar-in tuition assistance for eligible persons for the first 30 semester hours of their higher education pursuing a baccalaureate degree at eligible state colleges and universities.
The estimated annual cost of this proposed legislation is about $9.2 million
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2020 Increase/Decrease (use"-") |
2021 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
9,160,104 |
9,160,104 |
Personal Services |
0 |
40,000 |
40,000 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
9,120,104 |
9,120,104 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The proposed legislation limits the awards to students who enrolled in one of the following public four-year institutions:
o Bluefield State College
o Concord University
o Fairmont State University
o Glenville State College
o Shepherd University
o WVU Institute of Technology
o West Liberty University
o West Virginia State University
Students who were reported as first-time freshmen in the fall or the spring semester of 2018-2019 academic year with the following characteristics were included in the estimate.
Students who were reported as paying in-state tuition; this includes students who
may be high school graduates of out-of-state high schools.
Students who were bachelor degree seeking students.
Students who attempted 12 credit hours or more per semester.
Semester fees were estimated based on the 2019-2020 in-state annual tuition for the specific institution. The financial aid received for each student each semester was calculated as the total of Pell, Promise, and WVHEGP funding received. If institutions did not provide a financial aid record for the student, it was assumed that the student received no financial aid. An adjustment for students who started as first time freshmen in the spring semester was included in the total funding to account for the student unmet need in their second semester of the freshman year (fall semester of the following year). The unmet need of the following semester was estimated at the same level as in Spring 2019.
Additional funding for students receiving the award in their third semester was also included. It was estimated that 50% of first-time freshmen in the institutions included in the bill complete fewer than 30 credit hours during the first two semesters of their freshman year. The estimate for funding for the third semester was calculated as 50% of all freshmen with unmet need times the estimated average semester award ($1,981). The estimated annual award is $3,961.
Monitoring Cost
Monitoring costs are associated with managing a scholarship or grant and servicing the program participants. These costs include monitoring participants’ eligibility for initial enrollment and renewal, maintaining residency requirements, drug free status, etc.
The cost for one year is estimated based on the number of students being served in that year only. It is estimated that about 2,000 students will require services, with a cost of approximately $40,000 a year. This estimate is based on the current cost of servicing students who participate in current financial aid programs.
The Total Number of First Time Bachelor’s Degree Seeking Freshmen with Unmet Need (Fall and Spring) and the total funding estimates are:
Students Funding Estimate
Bluefield State College 59 $199,025
Concord University 215 $813,218
Fairmont State University 533 $2,115,433
Glenville State College 113 $449,978
Shepherd University 287 $1,251,039
WVU Institute of Technology 231 $795,658
West Liberty University 206 $905,767
West Virginia State University 199 $770,504
Subtotal 1,843 $7,300,622
Third Semester Award Estimate 922 $1,826,482
Total $9,127,104
Memorandum
Person submitting Fiscal Note: Ed Magee
Email Address: edward.magee@wvhepc.edu