FISCAL NOTE

Date Requested: February 09, 2017
Time Requested: 08:08 AM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2072 Introduced SB184
CBD Subject: Education (Higher)


FUND(S):

0589

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 184, if enacted would transition the West Virginia School of Osteopathic Medicine from a state owned and operated entity to a not-for-profit corporation. Beginning in Fiscal Year 2019, budget savings would be realized through General Fund State Appropriations reductions totaling $ 7,365,957. These savings would be offset by General Fund State Appropriations disbursed to the WVSOM West Virginia Student Tuition Transition Fund totaling $2,500,000 in Fiscal Years 2018 and 2019, and $2,200,000 in Fiscal Year 2020.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 2,500,000 -7,365,957
Personal Services 0 0 -5,671,787
Current Expenses 0 2,500,000 -1,694,170
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):






Memorandum


As of June 30, 2016, The West Virginia School of Osteopathic Medicine’s cash and investment balances totaled about $57.1 million. The depreciated value of its capital assets reflect on its statement of net position totaled about $79.6 million. The insured value of its capital assets reported to the West Virginia Board of Risk and Insurance Management is about $134.2 million.



    Person submitting Fiscal Note: Ed Magee
    Email Address: edward.magee@wvhepc.edu