FISCAL NOTE

Date Requested: February 20, 2019
Time Requested: 09:24 AM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2815 Introduced HB2730
CBD Subject: Governor -- Bills Requested By


FUND(S):

0317

Sources of Revenue:

General Fund

Legislation creates:





Fiscal Note Summary


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


The total estimated cumulative cost to the State under the Public School Support Program (PSSP) for the equivalent of an average 5% across the board increase in the basic teacher salary schedule and the basic service personnel salary schedule is $67,740,948.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 67,740,948 67,740,948
Personal Services 0 0 0
Current Expenses 0 67,740,948 67,740,948
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 Plan (PSSP) for the equivalent of a 5% average across the board increase in the basic teacher salary schedule ($2,120 per professional) and the basic service personnel salary schedule ($1,150 per service person) is $67,740,948 for 2019-20 and thereafter. This cost estimate includes the estimated increases in Step 1 for professional educator salaries ($41,282,935), Step 2 for service personnel salaries ($13,671,708), Step 3 for fixed charges ($4,832,150), Step 5 for professional student support salaries ($1,827,376), Step 6 for substitute costs ($1,419,550), and retirement ($4,707,229). The total portion of the overall additional cost attributable to professional educators is $49,250,541, the portion attributable to professional student support personnel is $2,180,059, and the portion attributable to service personnel is $16,310,348. 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. The West Virginia Consolidated Public Retirement Board (CPRB) should also be consulted to obtain the additional cost to the State due to the impact of the proposed salary increases on the unfunded retirement liability for the Teachers' Retirement System (TRS). This cost estimate does not assume the passage of other legislation. If other changes are made to the PSSP, it could result in an increased cost for the pay increases.



Memorandum






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