FISCAL NOTE

Date Requested: February 08, 2017
Time Requested: 06:36 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
1045 Introduced SB32
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 FY2019 and a loss of $14.4 million per fiscal year starting in FY2020. Additional administrative costs would be $40,000 in FY2019 and $39,000 in fiscal years thereafter.



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 0 35,000
Personal Services 0 0 35,000
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 -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 FY2019 and a loss of $14.4 million per fiscal year starting in FY2020. Additional administrative costs would be $40,000 in FY2019 and $39,000 in fiscal years thereafter.



Memorandum






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