FISCAL NOTE

Date Requested: January 19, 2018
Time Requested: 11:45 AM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1807 Introduced HB4206
CBD Subject: Education (K12)


FUND(S):

0317

Sources of Revenue:

Other Fund N/A

Legislation creates:

Decreases Existing Expenses



Fiscal Note Summary


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


    There is no additional cost or savings to the State for this proposed legislation since the allowances under the Public School Support Program are not being revised. The estimated savings to the county boards of education for the proposed legislation is $1,084,334 for fiscal years 2019 and thereafter. There are also potential additional cost savings for the county boards of education, but there is insufficient data to estimate those additional cost savings.



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 -1,084,334 -1,084,334
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 -1,084,334 -1,084,334
2. Estimated Total Revenues 0 0 0


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


    There is no additional cost or savings to the State for this proposed legislation since the allowances under the Public School Support Program are not being revised and the additional teacher compensation for each additional student above the required ratios is a county board of education funded cost. The estimated savings to the county boards of education for the proposed legislation is $1,084,334 for fiscal years 2019 and thereafter. There are also potential additional cost savings for the county boards of education, but there is insufficient data to estimate those cost savings.
    
    The proposed legislation will remove the pupil-teacher ratio requirements for grade six classes. Current statute requires county boards of education to pay exclusively from county funds additional compensation to each teacher who has one to three students over the required twenty-five students for grades four through six. The additional compensation is based on the affected teacher's average daily salary divided by twenty-five for grades four through six for every day times the number of additional pupils enrolled up to the maximum of three additional students. Under the proposed legislation, the additional compensation would no longer be required for grade six, resulting in savings to the county boards of education.
    
    To estimate the cost savings to the county boards of education, counts of classrooms with enrollment greater than twenty-five and up to the maximum of twenty-eight were obtained by county, multiplied by the applicable county's average contracted salary for classroom teachers for each student over the required limit of twenty-five, divided by the base of twenty-five students, and prorated by the average estimated amount of time teachers have classrooms with one to three students above the required twenty-five student limit. This estimate assumes that each instructional day for grade six is made up of seven (7) classes or periods, except for those few county boards of education where sixth grade students are still in an elementary (one teacher) setting.
    
    Additional cost savings may be realized by the county boards of education once they would be able to analyze course schedules and potentially eliminate entire positions if the sixth grade class sizes are adjusted to sizes similar to those utilized in the seventh and eight grade at the middle school level. However, insufficient data exists at this time to provide such an estimate.
    
    The cost savings to the county boards of education would vary annually based on sixth grade enrollment and scheduling.



Memorandum


    



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