Fiscal Note & Local Impact Statement

125 th General Assembly of Ohio

Ohio Legislative Service Commission

77 South High Street, 9th Floor, Columbus, OH 43215-6136 Phone: (614) 466-3615

Internet Web Site: http://www.lsc.state.oh.us/

BILL:

Sub. H.B. 275

DATE:

November 13, 2003

STATUS:

As Reported by House Finance & Appropriations

SPONSOR:

Rep. Key

LOCAL IMPACT STATEMENT REQUIRED:

No

No local cost

 


CONTENTS:

To provide scholarships to children of Ohioans killed or disabled during Operation Iraqi Freedom

 

State Fiscal Highlights

 

STATE FUND

FY 2004

FY 2005

FUTURE YEARS

General Revenue Fund

Revenues

- 0 -

- 0 -

- 0 -

Expenditures

- 0 -

- 0 -

- 0 -

Note: The state fiscal year is July 1 through June 30. For example, FY 2004 is July 1, 2003 June 30, 2004.

 

        According to current law, children of Ohioans killed or disabled during Operation Iraqi Freedom are eligible to receive War Orphans Scholarships; therefore this provision of the bill does not create an additional expenditure.

        However, the bill would exclude these children from having their awards reduced if the War Orphans Scholarship program did not have enough funds to cover its obligations, and would also prohibit any limitation on the number of scholarships for these children. It should be noted that the first child of an Ohioan killed or disabled during Operation Iraqi Freedom would not be expected to attend college and receive a War Orphans Scholarship until FY 2008.

        Since children of Ohioans killed in the line of duty during Operation Iraqi Freedom are already eligible to receive War Orphans Scholarships, they would generally be ineligible to receive a tuition waiver for children of public officers killed in the line of duty.

 

Local Fiscal Highlights

 

        No direct fiscal effect on political subdivisions.

 


 


 

Detailed Fiscal Analysis

 

The costs of the programs will depend on the number of individuals who are eligible and will take part in the programs, when an eligible child begins his or her postsecondary studies, and how long a program participant receives the award. As of October 7, 2003, there were 12 Ohioans who were killed in action during Operation Iraqi Freedom, leaving behind seven children. These numbers could increase, since it is difficult to predict when Operation Iraqi Freedom will officially end.

 

The seven children are already eligible to take part in the War Orphans Scholarship program under current law. However, the bill would exclude these children from having their awards reduced if the War Orphans Scholarship program did not have enough funds to cover its obligations. The bill also prohibits the Ohio War Orphans Scholarship Board from placing any limitation on the number of scholarships granted to these children. Since these children are eligible to receive War Orphans Scholarships, the bill would make them ineligible to receive the tuition waiver for children of public officers killed in the line of duty.

 

There were 784 War Orphans Scholarship recipients in FY 2003, each receiving an average award of $4,996. If the student attended college for four years (FY 2000 to FY 2003), the average War Orphans Scholarship recipient would have received $17,437. If the student attended college for the maximum five years (FY 1999 to FY 2003), then the average War Orphans Scholarship recipient would have received $21,178. For reference, Table 1 provides the expected average War Orphans Scholarship amounts for FY 2004 through FY 2013 assuming annual increases of 6% and 9% per year. It should be noted that the first child of an Ohioan killed or disabled during Operation Iraqi Freedom would not be expected to attend college and receive a War Orphans Scholarship until FY 2008.

 

Table 1: Estimated War Orphans Scholarship Award Amounts

Fiscal Year

6% increase

9% increase

FY 2004

$5,296

$5,446

FY 2005

$5,614

$5,936

FY 2006

$5,950

$6,470

FY 2007

$6,307

$7,052

FY 2008

$6,686

$7,687

FY 2009

$7,087

$8,379

FY 2010

$7,512

$9,133

FY 2011

$7,963

$9,955

FY 2012

$8,441

$10,851

FY 2013

$8,947

$11,827

 

LSC fiscal staff: Zak Talarek, Budget Analyst

 

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