Date Requested: February 11, 2015
Time Requested: 01:28 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2834 Introduced HB2674
CBD Subject: Education (K12)


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 2674, if enacted, would make home schooled students eligible for a PROMISE scholarship without taking the GED test. It would add entrance examination score as an alternative eligibility criterion for receiving the scholarship. Students would need to obtain a score within the eightieth percentile on a nationally recognized college entrance examination including the SAT, ACT or other entrance examination as the commission determines or maintain a grade point average of at least 3.0 on a 4.0 grading scale in the required core and elective course work necessary to prepare students for success in post-secondary education at the associate and baccalaureate degree levels as determined by the commission. In addition, it would increase the amount of unpaid community service hours preferred for prospective candidates. It is estimated that the additional costs associated with this proposed legislation would be approximately $9.2 million in Fiscal Year 2016 and the annual cost upon full implementation would be about $28.1 million.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 9,200,000 28,100,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 9,200,000 28,100,000
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    It is estimated that 2,058 students with grade point averages of at least 3.0 on a 4.0 grading scale would enroll in West Virginia higher education institutions. If the PROMISE scholarship award for these students averaged $4,449, the additional costs for these students in Fiscal Year 2016 would be approximately $9.2 million. Of the 2,058 students, it is estimated that 81.5 percent would qualify for the PROMISE scholarship in the second year; 66.7 percent would qualify in the third year; and 58.7 percent would receive the scholarship in the fourth year. If 2,058 additional first year students receive the PROMISE scholarship each year, the estimated cost upon full implementation would be about $28.1 million. This estimate is based upon current enrollments. If all of the additional 2,000 students that could take advantage of the program did so, the cost would almost double. It is estimated that the cost associated with additional home-schooled students would be negligible.
    
    Current PROMISE Scholars must receive a score of 22 or higher on the ACT to qualify for the scholarship. This bill would raise the required score to 25 or 26 depending upon the distribution of the ACT scores.
    



Memorandum


    



    Person submitting Fiscal Note: Ed Magee
    Email Address: emagee@hepc.wvnet.edu