FISCAL NOTE

Date Requested: January 19, 2018
Time Requested: 11:49 AM
Agency: Education, WV State Board of
CBD Number: Version: Bill Number: Resolution Number:
1815 Introduced HB4226
CBD Subject: Education (K12)


FUND(S):

N/A

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Expenses



Fiscal Note Summary


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


    The estimated savings to the State for the proposed legislation is $17,750 for fiscal years 2019 and thereafter. The estimated savings to the county boards of education for the proposed legislation is $112,983 for fiscal years 2019 and thereafter. The total estimated combined cumulative cost to the State and county boards of education for eliminating service personnel competency testing is $130,733.



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 -130,733 -130,733
Personal Services 0 0 0
Current Expenses 0 -17,750 -17,750
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 -112,983 -112,983
2. Estimated Total Revenues 0 0 0


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


    The estimated savings to the State for the proposed legislation is $17,750 for fiscal years 2019 and thereafter. The estimate was determined by totaling the annual costs for the West Virginia Department of Education to update and maintain the state-wide service personnel competency tests.
    
    The estimated savings to the county boards of education for the proposed legislation is $112,983 for fiscal years 2019 and thereafter. To estimate the fiscal impact this proposed legislation may have on the county boards of education, a sample of seven county boards of education from differing population densities and student enrollment populations were surveyed and asked to project the potential additional costs or savings their district would experience under the proposed legislation. All responses provided by the county boards estimated that the proposed legislation would provide small savings or no change to their current costs. The responses were summarized and used to determine an average savings of $8.25 per service personnel FTE. The average was then applied to the county boards of education that were not included in the survey to arrive at an estimated cost savings of $112,983.



Memorandum


    Although the service personnel competency testing is currently not a significant cost to the State or county boards of education, the tests function as an extension of the interview process and allows county boards of education to extend employment offers to only qualified applicants. Test results allow county boards of education to exclude job applicants who do not meet the minimum job requirements for the positions for which they have applied. The county boards of education who assisted with the preparation of this fiscal note indicated concern with the elimination of the competency testing since it would remove one of the only mechanisms by which the county boards can ensure that only applicants who possess the necessary knowledge to fill service personnel positions are eligible for positions and provides a factor other than seniority to be used in the hiring process. In addition, the use of statewide competency exams provides consistency between the county boards of education across the state and avoids duplication of effort that would occur if each county board developed their own competency exams for service personnel.



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