Date Requested: February 11, 2015
Time Requested: 01:28 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2648 Introduced SB448
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.


    Senate Bill 448, if enacted, make home schooled students eligible for a Promise scholarship without taking the GED test. It would replace grade point average with entrance examination score as an 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. In addition, it would increase the amount of unpaid community service hours preferred for prospective candidates. It is estimated that this bill would reduce the number of PROMISE recipients and reduce the costs associated with the program by approximately $6.8 million in Fiscal Year 2016. Upon full implementation, it is estimated that the costs would be reduced by about $21.0 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 -6,800,000 -21,000,000
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 -6,800,000 -2,100,000


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


    It is estimated that 1,536 students would no longer qualify for the PROMISE scholarship if students were required to obtain a score within the eightieth percentile on a nationally recognized college entrance examination. If the PROMISE Scholarship award for these students averaged $4,449, the cost reduction in the first year would be approximately $6.8 million. Of the 1,536 students, it is estimated that 81.5 percent would not qualify for the PROMISE scholarship in the second year; 66.7 percent would not qualify in the third year; and 58.7 percent would not receive the scholarship in the fourth year. If 1,536 students no longer qualify each year, the estimated cost reduction upon full implementation would be about $21.0 million. It is estimated that the cost associated with additional home-schooled students would be negligible. Because percentile rankings as they relate to test scores will vary from year to year, the test score needed to qualify for the PROMISE scholarship could change from year to year.
    
    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