FISCAL NOTE

Date Requested: February 23, 2017
Time Requested: 01:11 PM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2677 Introduced SB420
CBD Subject: Governor -- Bills Requested By


FUND(S):



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.


    Promotes an efficient and effective public education system that includes abolishing RESAs, eliminating OEPA, establishing the County Superintendents' Advisory Council to provide authority for county school systems to share services, reduces statewide student assessment requirements, requires flexibility to meet 180 day instructional days, provides teachers with uninterrupted time for planning periods and includes an $808 pay raise for classroom teachers. Savings by abolishing RESAs and OEPA and eliminating testing requirements for 9th & 10th grades total $5,862,548. Costs for a classroom teacher pay raise totals $21,679,127. This results in a net cost of $15,816,579. It is anticipated that there will be a savings associated with a change in the statewide summative assessment, which cannot be definitively projected at this time.



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 15,816,579 15,816,579
Personal Services 0 -867,482 -867,482
Current Expenses 0 16,684,061 16,684,061
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


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


    Abolishing the Regional Education Service Agencies (RESA) results in eliminating a $3,690,750 line item supplement. Eliminating the Office of Education Performance Audits (OEPA) results in eliminating six line items totaling $1,171,798. Eliminating testing for 9th and 10th grade students results in a savings of approximately $1,000,000. The savings associated with a change in the statewide summative assessment cannot be definitively determined at this time since the RFP process will be necessary to select a vendor. The flexibility to meet 180 instructional days could result in a potential savings in transportation and facility expenses due to the possibility of accrued minutes resulting in fewer instructional days.
    
    A proposed $808 pay raise for classroom teachers will cost the state $21,679,127 for teachers within formula. Counties would incur an additional cost for classroom teachers over formula.
    
    The establishment of the County Superintendents' Advisory Council is not expected to require additional funding.



Memorandum


    We are not able to identify with certainty whether any savings will be associated with modifying the school accreditation and accountability measures, altering school system intervention procedures and requirements, and providing teachers uninterrupted time.



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