FISCAL NOTE

Date Requested: March 02, 2018
Time Requested: 03:23 PM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1687 Comm. Sub. HB4145
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 estimated cumulative cost to the State under the Public School Support Program (PSSP) for the proposed salary increase for school personnel is $65,713,407.



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 65,713,407 65,713,407
Personal Services 0 0 0
Current Expenses 0 65,713,407 65,713,407
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):


    The estimated cost to the State under the Public School Support Program (PSSP) for the equivalent of a 5% average across the board increase in the basic teacher salary schedule ($2,020 per professional) and the basic service personnel salary schedule ($1,100 per service person) is $65,713,407 for 2018-19 and annually thereafter.
    
    This cost estimate includes the estimated increases in Step 1 for professional educator salaries ($40,022,403), Step 2 for service personnel salaries ($13,312,976), Step 3 for fixed charges ($4,702,861), Step 5 for professional student support salaries ($1,733,261), Step 6 for substitute costs ($1,376,716), and retirement ($4,565,190).
    
    The total portion of the overall additional cost attributable to professional educators is $47,758,733, the portion attributable to professional student support personnel is $2,068,300 and the portion attributable to service personnel is $15,886,374.
    
    Note that county boards of education will incur additional costs for personnel employed in excess of funded, personnel employed in positions not eligible for state aid funding, personnel employed using other funding sources such as state or federal grants, and extended employment terms for professional personnel. Such county level costs are not included in the above estimates.
    
    Also note that this estimate is does not subtract the cost of SB267 which was passed into law previously during the legislative session. The estimate is the full cost of the 5% average increase, not the incremental 3% cost over and above the 2% increase previously passed.



Memorandum


    



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