FISCAL NOTE

Date Requested: February 08, 2017
Time Requested: 06:12 PM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1460 Introduced HB2211
CBD Subject: Education (K12)


FUND(S):



Sources of Revenue:

Other Fund N/A

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


    The purpose of this bill is to raise minimum teacher salaries $1,500 per year through fiscal year 2020. The estimated cumulative cost to the State for all four years of proposed increases is $163,201,332. The estimated cumulative cost to the county boards of education for all four years of proposed increases is $29,927,924. The total combined estimated cost for both the State and the county boards of education for the four year teacher salary increase contained in the proposed legislation is $193,129,256.



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 48,282,314 193,129,256
Personal Services 0 0 0
Current Expenses 0 40,800,333 163,201,332
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 7,481,981 29,927,924
2. Estimated Total Revenues 0 0 0


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


    The estimated cost to the State under the Public School Support Program (PSSP) for the 2017-18 year for a $1,500 across the board increase in the basic teacher salary schedule is $40,800,333. The estimated annual incremental cost for a $1,500 per year across the board increase in the basic teacher salary schedule for years 2018-19, 2019-20 and 2020-21 is $40,800,333 per year. These estimated costs include the estimated increases in Steps 1, 3, 6 and retirement. The total estimated cumulative cost to the State for all four years of proposed increases is $163,201,332.
    
    The county boards of education would also incur additional costs for the salary increases for the counselors and nurses included in Step 5 of the PSSP since the allowance is fixed at the 2012-13 amount, for all professional personnel over formula and for all other professional personnel employed from other funding sources. The estimated cost to the county boards of education for the 2017-18 year for a $1,500 across the board increase in the basic teacher salary schedule is $7,481,981. This includes the estimated increases in professional salaries, fixed charges and retirement. The additional incremental estimated cost to the county boards of education for a $1,500 per year across the board increase in the basic teacher salary schedule for years 2018-19, 2019-20 and 2020-21 is $7,481,981 per year. These estimated costs include the estimated increases in salaries, fixed charges and retirement. The total estimated cumulative cost to the county boards of education for all four years of proposed increases is $29,927,924. Please note that the estimated cost to the county boards of education does not include the additional cost for extended contract terms.
    
    The total combined estimated cost for both the State and the county boards of education for the four year teacher salary increase contained in the proposed legislation is $193,129,256.



Memorandum


    



    Person submitting Fiscal Note: Brenda Freed
    Email Address: bfreed@k12.wv.us