FISCAL NOTE

Date Requested: February 01, 2018
Time Requested: 10:58 AM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1686 Comm. Sub. SB267
CBD Subject: Governor -- Bills Requested By


FUND(S):

0317

Sources of Revenue:

General Fund

Legislation creates:

Increases Existing Expenses



Fiscal Note Summary


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


    The total estimated additional cost to the State for the Committee Substitute for SB267 is $41,387,455 and the total estimated additional cost to the county boards of education is $1,619,972, for a total estimated additional cost of $43,007,427. This additional cost is the cost for adding four additional years of professional salary increases and one additional year for service personnel. When combined with the cost for the initial year of salary increases already included in the Governor's proposed budget for FY19, the total estimated five-year cost to the State for the proposed legislation is $54,117,275 and the total estimated cost to the county boards of education is $2,024,965.



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 0 0
Personal Services 0 0 0
Current Expenses 0 0 41,387,455
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 1,619,972
2. Estimated Total Revenues 0 0 43,007,427


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


    The total estimated additional cost to the State for the Committee Substitute for SB267 is $41,387,455 and the total estimated additional cost to the county boards of education is $1,619,972, for a total estimated additional cost of $43,007,427. This additional cost is the cost for adding four additional years of professional salary increases and one additional year for service personnel.
    
    The breakdown of the estimated cost to the State of the proposed legislation by year is as follows:
    Year 1 - FY19 $12,729,820 ($9,552,545 Professional Educators, $3,177,275 Service Personnel)
    Year 2 - FY20 $12,729,820 ($9,552,545 Professional Educators, $3,177,275 Service Personnel)
    Year 3 - FY21 $ 9,552,545 (All Professional Educators)
    Year 4 - FY22 $ 9,552,545 (All Professional Educators)
    Year 5 - FY23 $ 9,552,545 (All Professional Educators)
    Total $54,117,275
    
    The above costs include all applicable steps under the Public School Support Plan (PSSP), including Step 1 - Allowance for Professional Educators, Step 2 - Allowance for Service Personnel, Step 3 - Allowance for Fixed Charges, Steps 6b&6c - Allowance for Substitute Costs, and Retirement.
    
    The estimated cost to the county boards of education is $404,993 for each of the five years in the proposed legislation for a grand total of $2,024,965. This cost estimate is for the cost of the salary increases and related benefit costs for school counselors and nurses funded under Step 5 of PSSP since that step is fixed at the 2012-13 funding level and no additional state aid funding will be provided. The county boards will also incur costs that are not included in the estimate for personnel employed over formula, personnel employed in positions not eligible for state aid, personnel paid with state and federal grants, and extended employment terms for professional personnel.
    
    The estimates for all years are based on the number of professional educators, service personnel and professional school support personnel (counselors and nurses) funded through PSSP for the 2018-19 school year. The number of funded personnel varies annually based on student enrollment, so the actual cost for the salary increases under PSSP will vary for each year beyond 2018-19.



Memorandum


    



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