FISCAL NOTE
Date Requested: January 13, 2023
Time Requested: 04:45 PM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1555 |
Introduced |
SB204 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
0317
Sources of Revenue:
General Fund N/A
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The total estimated cost to the State for the 2023-24 year under the Public School Support Plan for the proposed legislation is $23,982,356. The cost to the State would vary annually depending on the number of teachers employed and their years of experience.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
23,982,356 |
23,982,356 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
23,982,356 |
23,982,356 |
| 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 total estimated cost to the State under the Public School Support Plan (PSSP) for the proposed legislation is $23,982,356. The proposed legislation would increase the salary of teachers to the minimum amount of those with the equivalent of 8 years or more experience.
Using data from the 2022-23 Certified List of Personnel, it is estimated that there are 7,825 state aid eligible professional employees with 0 to 7 years’ experience. An increase in their annual salary based on their years of experience is broken down as follows:
•0 years experience - $4,392 increase; currently 1,248 state aid eligible positions employed
•1 year experience - $3,874 increase; currently 1,137 state aid eligible positions employed
•2 years experience - $3,355 increase; currently 910 state aid eligible positions employed
•3 years experience - $2,837 increase; currently 948 state aid eligible positions employed
•4 years experience - $2,074 increase; currently 917 state aid eligible positions employed
•5 years experience - $1,555 increase; currently 814 state aid eligible positions employed
•6 years experience - $1,037 increase; currently 905 state aid eligible positions employed
•7 years experience - $518 increase; currently 946 state aid eligible positions employed
The increase in salaries would increase funding under Step 1 – Allowance for Professional Personnel by $20,224,621, Step 3 - Allowance for Fixed Charges by $1,670,554, Step 6c - Allowance for Substitutes by $505,616, and Retirement by $1,581,565 for a total estimated cost to the State of $23,982,356.
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
N/A
Person submitting Fiscal Note: Samuel E. Pauley
Email Address: sepauley@k12.wv.us