FISCAL NOTE
FUND(S):
Sources of Revenue:
General Fund,Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Fiscal Note: FY 2010 = $44,448,320; FY 2011 and thereafter = $46,226,253
Summary. The version of Senate Bill No. 373 that passed the Senate countenances two types of funding increases for the PROMISE Scholarship Program: (1) a $2 million increase in excess lottery funding from $27 million to $29 million beginning in FY 2010, pursuant to proposed W. Va. Code § 29-22-18a(c); and (2) a 2% statutory increase in funding for FY 2010 and a 4% statutory increase in funding for FY 2011, pursuant to proposed W. Va. § 18C-7-7(c). This means that the appropriation for FY 2010 would be $44,448,320 and the appropriation for FY 2011 and thereafter would be $46,226,253.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2009
Increase/Decrease
(use"-") |
2010
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
2,000,000 |
2,928,967 |
| 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):
Explanation of Estimates. The Senate version of Senate Bill No. 373 provides for an annual award of $4,750 or the cost of tuition and required fees, whichever is less, for students receiving a new PROMISE Scholarship award on or after January 1, 2009. See proposed W. Va. Code §18C-7-6(a). The Senate version goes on to provide that the Higher Education Policy Commission may increase the maximum annual amount if funds are available. See proposed W. Va. Code § 18C-7-6(a)(3). Finally, the Senate Education Committee indicated that the Student Financial Advisory Board should be strongly encouraged to raise academic standards to a composite ACT score of 23 and minimum subscores of 20. This is not required, however, and these projections do not model an increase in academic criteria. See proposed W. Va. Code § 18C-1-5(c)(6). As a result of the above expectations, the projected number of new recipients would remain unchanged as a result of the Senate version of the bill, increasing slightly in FY 2010 and then decreasing after that because the number of West Virginia high school graduates is expected to increase for one more year and then decline.
Assuming no increase in the $4,750 maximum award and no increase in standards, we project the following year-end balances for the program: FY 2010 - $1.5 million; FY 2011 - $1.8 million; FY 2012 - $3.6 million; and FY 2013 - $7.7 million.
Memorandum
Person submitting Fiscal Note: Terry Hess
Email Address: hess@hepc.wvnet.edu