FISCAL NOTE

Date Requested: January 16, 2018
Time Requested: 01:35 PM
Agency: Community & Technical College System, WV
CBD Number: Version: Bill Number: Resolution Number:
1797 Introduced SB284
CBD Subject: Governor -- Bills Requested By


FUND(S):

0596

Sources of Revenue:

General Fund

Legislation creates:

Creates New Expense



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    Senate Bill 284, if enacted, would increase the quality of the state’s workforce by increasing access to career education through the establishment of Advanced Career Education (ACE) programs and the WV Invests Grant Program.
    
    The estimated costs associated with WV Invests Grant Program are approximately $7 million.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 7,000,000 7,000,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 7,000,000 7,000,000
2. Estimated Total Revenues 0 0 0


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


    To determine the estimated costs, unmet need was calculated for students attending a community and technical college during the 2014-2015 and 2015-2016 academic years. The calculations were based only on students attending in the fall and/or the spring semesters.
    
    Students included in the estimates meet the following criteria:
    - They were considered in-state students and pay in-state tuition fees.
    - They were not high school students pursuing dual credit.
    - They have a designated high school graduation year.
    - They were at least 20 years of age.
    - They have attempted at least 6 credits in a semester.
    - They were pursuing an associate degree or a certificate.
    - They have no prior credentials within the state.
    - Returning or continuing students had a cumulative college GPA of 2.0 or above.
    - They have completed FAFSA for the given academic year.
    - They have unmet need based on tuition and financial aid award. Unmet need was calculated as the difference between the estimated student tuition less any federal and state financial aid.
    
    ACE Participation
    
    ACE participation and funding was estimated based on current first time freshmen under the age of 20 who were degree seeking and who enrolled in a community and technical college. The total unmet need for this population is $1,468,652 in 2015-2016.
    
    Projected Unmet Need for WV Invest Grant and ACE Programs
    
    The following considerations are incorporated in the projected funding:
    - WV Invests Grant:
    o We estimate 20% increase in unmet need for WV Invests Grant due to changes associated with currently enrolled students (more students filing FAFSA, more student enrolling as full-time students or attempting more credits per semester, changes in federal grant eligibility, changes in tuition and fees, etc.)
    o We estimate 20% increase in unmet need for WV Invests Grant due to new students entering the system. Tennessee and Oregon estimated 20% growth in enrollment when tuition assistance becomes available to community and technical college students.
    - ACE Programs and Pathways:
    o We estimate that 50% of the recent high school graduates under the age of 20 who enrolled in a community and technical college are likely to go through the ACE programs and pathways. Thus ACE is estimated to serve about 560 students with a total unmet need of $734,326.
    
    Monitoring Cost
    
    Monitoring costs are associated with managing the scholarship and servicing the program participants. These costs include monitoring participants’ eligibility for initial enrollment and renewal, maintaining residency requirements, drug free status, etc.
    
    The cost for one year is estimated based on the number of students being served in that year only. Between the WV Invests Grant and Ace, accounting for changes in number of students enrolling and both programs, we estimated serving a total of 5,000 with a cost of approximately $100,000 a year. This estimate is based on the current cost of servicing students who participate in current financial aid programs.
    
    



Memorandum


    



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