FISCAL NOTE

Date Requested: February 05, 2018
Time Requested: 01:52 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
1375 Introduced HB4430
CBD Subject: Education (Higher)


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.


    House bill 4430, if enacted, would establish a merit-based Katherine Johnson Hope Scholarship program to provide tuition and fee payments for certain qualified students to participate in community and technical college education programs at state community and technical colleges or state public career and technical education centers. High school students and adults can qualify with a 2.5 grade point average, a work plan, or a recommendation letter from a principal or guidance counselor with any special remedial services specified in the letter. No scholarship awards may be made until the program is funded.
    
    If the scholarship is available to both new students enrolling in the Community and Technical College System and the currently enrolled students for all students taking at least 1 credit per semester, the estimated cost based on the academic-year 2015-2016 tuition will be about $4.8 million per year.
    



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 4,800,000 4,800,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 4,800,000 4,800,000
2. Estimated Total Revenues 0 0 0


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


    Students included in the estimate meet the following criteria if they:
    * graduated from a West Virginia high school;
    * had s high school grade-point average of 2.5 or higher;
    * were pursuing a certificate or an associate credential;
    * have a financial aid record submitted by the postsecondary institution they attended;
    * attempted at least 1 credit in the fall and/or the spring semester;
    * had no prior credential within the state; and
    * demonstrated unmet need based on tuition and their financial aid award.
    
    Returning or continuing students had a cumulative college grade-point average of 2.0 or above. Students were identified as first generation if neither parent had a college credential as identified on the Free Application for Federal Student Aid (FAFSA). If parent educational attainment was not available, students were assumed to be first generation students. Unmet need was calculated as the difference between the estimated student tuition less any federal and state financial aid.
    
    
    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 and maintaining residency requirements.
    
    The cost estimate for one year is based on the number of students being served in that year only. The cost for servicing 2,000 students for one year is approximately $40,000. This projection is based on the current cost of servicing students who currently participate in financial aid programs.
    
    
    Projected One-Year Unmet Need for Katherine Johnson Hope Scholarship
    
    
    We estimate a 20 percent increase in unmet need for the Katherine Johnson Hope Scholarship due to new students entering the system. This estimate aligns with projections by both Tennessee and Oregon which estimated a 20 percent growth in enrollment when tuition assistance becomes available to community and technical college students.
    
    
    
    



Memorandum


    



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