FISCAL NOTE

Date Requested: February 20, 2019
Time Requested: 03:14 PM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2074 Comm. Sub2 SB1
CBD Subject: Education (Higher), Education (K12)


FUND(S):

0317

Sources of Revenue:

General Fund

Legislation creates:

Creates New Program



Fiscal Note Summary


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


    There is no estimated cost to the State under the Public School Support Plan under the provisions of the proposed legislation regarding Advanced Career Education (ACE) programs. In addition, the WVDE does not anticipate any additional PK-12 appropriations will be needed related to the development and facilitation of ACE programs.



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 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
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):


    There is no estimated cost to the State under the Public School Support Plan (PSSP) under the provisions of the proposed legislation. The proposed legislation treats students who have been awarded a high school diploma and who have continued to be enrolled in the public schools in a program leading to an advanced certification or in an Advanced Career Education (ACE) program as adults enrolled in regular secondary programs in accordance with the PSSP. For purposes of calculating state aid funding, such adults enrolled in
    secondary programs are currently included in net enrollment on the basis of full-time equivalency (i.e. actual contact hours) in the prior year. The current statutory language contains a maximum of 1,000 such adults for funding purposes, but the proposed legislation increases the cap to 2,500. Although the cap is increasing by a possible 1,500 students, overall student enrollment in West Virginia has been declining annually since the 2014-15 school year, with decreases ranging from a low of 2,557 students to a high of 4,858 students. The average decline in enrollment over the five-year period is 2,829 students per year. The total number of births in West Virginia have
    continued to decline, so declines in enrollment are projected to continue into future years. Therefore, any projected additional student enrollment from the proposed legislation is expected to be offset by the normal decline in student enrollment in grades PK-12 for state aid funding purposes, resulting in no additional cost to the State under the PSSP.
    
    In the event that economic conditions in West Virginia improve and regular PK-12 student enrollment does not continue to decline as anticipated, and if the full potential new 1,500 student FTEs are included in the net enrollment total for state aid funding purposes, the maximum estimated increase in state aid funding would be $6,345,255. This maximum amount was estimated by multiplying the potential new 1,500 FTE by the $4,230.17 average state aid per pupil for the 2018-19 school year. The first potential year for any increase in state aid funding would be the 2021--2022 school year (FY22), based on any students that would be enrolled in qualifying programs during the 2019-20 school year.



Memorandum


    



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