FISCAL NOTE
FUND(S):
0586
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.
House Bill 2581, if enacted, would require that a sum certain be deposited into the Education Improvement Fund for appropriation by the Legislature to the PROMISE Scholarship Fund to provide full tuition and fees for PROMISE scholarships for fiscal year 2014.
Assuming that institutions increase their tuition and fee rates by six percent the estimated fiscal year 2014 cost would be $4.03 million. If appropriations are made to fund full tuition and fees in subseqent years, this figure will increase each year as tuition and fees go up: about $6.8 million extra in FY 2015, about $9.6 million extra in FY 2016, and about $13 million in FY 2017.
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 |
0 |
4,030,000 |
13,000,000 |
| 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):
PROMISE recipient projections are based on projected 12th grade enrollment derived from WVDE enrollment data, historical high school senior award qualification (20.2%) and uptake (89.2%) rates, and historical rates of award retention in semesters past initial receipt. Annual funding for future years of the program is assumed to be $48,500,000 consisting of $29 million in lottery funds and $18.5 million of general appropriations as provided for in 2009 Senate Bill 373. Award levels are based upon a projected 6 percent increase in tuition in FY 2014 and thereafter. The projection assumes that all new and existing recipients would receive full tuition and fees at public institutions and the average tuition of the public, regional four-year institutions at private institutions.
Memorandum
Person submitting Fiscal Note: Ed Magee
Email Address: emagee@hepc.wvnet.edu