FISCAL NOTE

Date Requested: February 26, 2016
Time Requested: 10:36 AM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
2863 Introduced SB653
CBD Subject: Education (Higher)


FUND(S):

General Revenue Fund

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 stated purpose of this bill is to require that higher education course catalogs include certain information relating to employment rate, compensation, etc. to help students decide on an area of study; to create a voluntary college completion incentive program whereby an institution of higher education accepts less state funding in return for certain incentive bonuses relating to student graduation and employment of graduates; and to create a tax credit for West Virginia resident students successfully completing certain course of study. According to our interpretation and based on available data, a Personal Income Tax credit for recent graduates of up to $2,000 would result in a revenue loss of $10.3 million in FY2018 and a loss of $14.4 million per fiscal year starting in FY2019. Additional administrative costs would be $54,500 in FY2018 and $40,100 in fiscal years thereafter.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 54,500 40,100
Personal Services 0 35,100 35,100
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 10,500 0
Other 0 8,900 5,000
2. Estimated Total Revenues 0 -10,300,000 -14,400,000


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


According to our interpretation and based on available data, a Personal Income Tax credit for recent graduates of up to $2,000 would result in a revenue loss of $10.3 million in FY2018 and a loss of $14.4 million per fiscal year starting in FY2019. Additional administrative costs would be $54,500 in FY2018 and $40,100 in fiscal years thereafter.



Memorandum






    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov