FISCAL NOTE
FUND(S):
0586,0596
Sources of Revenue:
General Fund
Legislation creates:
A New Program
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 $14.8 million
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 $8,760 and the average non-resident fee differential for a student attending one of West Virginia’s ten community college degree is $4,579. 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 $14.8 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.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2013
Increase/Decrease
(use"-") |
2014
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
14,802,595 |
14,802,595 |
14,802,595 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
14,802,595 |
14,802,595 |
14,802,595 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
WV Public Higher Education Institutions
Resident Rates Non-Resident Rates Differrential
WV Colleges 5,336 12,468 7,132
WV Universities 6,010 16,399 10,389
Community Colleges 2,997 7,576 4,579
In-State FTE Degrees Est. Instate students
WV Colleges and
WV Universities 23,100 13,008 16,170
Community Colleges 1,465 3,504 1,026
Total 24,565 16,512 17,296
16,170 * 8,876 = 143,427,900 * 10% = 14,342,790 West Virginia Higher Education Policy Commission
1,026 * 4,579 = 4,598,054 * 10% = 459,805 West Virginia Council for Community and Technical College Education
Total = $14,802,595
8,760 average college and university differential
4,579 average differential West Virginia Council for Community and Technical College Education
2011-12
Annualized non-resident FTE: 24,565 29.96%
Annualized resident FTE: 57,420 70.04%
Total FTE: 81,985
Memorandum
Person submitting Fiscal Note: Ed Magee
Email Address: emagee@hepc.wvnet.edu