FISCAL NOTE
FUND(S):
0589,0596
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.
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 $12.6 million
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2014
Increase/Decrease
(use"-") |
2015
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| 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):
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 $7,535 and the average non-resident fee differential for a student attending one of West Virginia’s ten community college degree is $4,610. 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 $12.6 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.
Resident Fee Rates 2013-14 Non Res.Fee Rates 2013-14 Differential
WV Colleges 5,974 12,468 6,494
WV Universities 6,310 14,706 8,576
CTCs 3,231 7,841 4,610
Annualized Non-Res.FTE 2012-13 Degrees 2012 Estim ResStudents 69%
Non-Res. Enrollment Univ 23,397 12,927 16,144
Non-Res. Enrollment CTCs 1,468 4,011 1,013
Total 24,865 16,938 17,406
Estimated Lost Revenue based on 10% of Non-resident FTE being the children of parents who graduated from WV Colleges.: $12,631,497
16,144 * 7,535 = 121,645,040 * 10% = 12,164,504 West Virginia Higher Education Policy Commission
1,013 * 4,610 = 4,669,930 * 10% = 466,993 West Virginia Council for Community and Technical College Education
Total = $12,631,497
7,535 average college and university differential
4,610 average differential West Virginia Council for Community and Technical College Education
2012-13
Annualized non-resident FTE: 24,865 30.98%
Annualized resident FTE: 55,391 69.02%
Total FTE: 80,256
Memorandum
Person submitting Fiscal Note: Ed Magee
Email Address: emagee@hepc.wvnet.edu