FISCAL NOTE
FUND(S):
Sources of Revenue:
Other Fund Tuition and Fees
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
There would be only a minor impact on costs and revenues of state government.
Because of budget pressures, institutions, especially smaller ones, have difficulty paying the full purchase price in a single fiscal year for small capital improvements and to buy new or replace outdated academic, research and information technology equipment. As a result, needed improvements and equipment purchases are often postponed for many years and the quality and relevancy of instruction suffers.
Establishing a state-wide higher education lease/purchase program at the Council and Commission for equipment, furniture and small capital improvements would allow the institutions to spread the cost of purchases over several years, thereby making the purchase less of a budgetary burden in a single year. A state-wide program would also take advantage of economies of scale in the cost of tax-exempt financing that the individual institutions cannot achieve on their own and would require only minor changes in existing statutes to implement.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2008 Increase/Decrease (use"-") |
2009 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
30,000 |
30,000 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
30,000 |
30,000 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
There would be only minor administrative costs in setting up the lease/purchase program.
Memorandum
Person submitting Fiscal Note: Richard Donovan
Email Address: donovan@hepc.wvnet.edu