FISCAL NOTE

Date Requested: January 27, 2023
Time Requested: 01:28 PM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
3022 Introduced HB3084
CBD Subject: Education (K12)


FUND(S):

0313

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 WVDE for the proposed legislation is $2,640,000. The estimated cost includes additional expenses under Fund 0313, Appropriation 05900 – Increased Enrollment. We were unable to quantify additional cost related to certain provisions of the proposed legislation that should be determined by other state agencies. Please note, the estimated costs provided by WVDE in response this fiscal note, does not include any amount already appropriated to public charter schools or for provisions of other legislative proposals currently being consider that may impact the calculation used in this fiscal note.



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 2,640,000 2,640,000 2,640,000
Personal Services 0 0 0
Current Expenses 2,640,000 2,640,000 2,640,000
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):


Below is an analysis of the major provisions of the bill and the potential cost implications, including the provisions we are unable to estimate and provisions that have cost implications that should be provided by other agencies: • W Va. Code § 18-5-48 – Safe Schools Fund – There is not any cost to WVDE under the proposed amendments to this section because it does not change the mechanism by which the safety and security needs of public schools are assessed annually or how the Legislature is to appropriate funding to address those needs. However, the proposed legislation does clarify that public charter schools are eligible to receive funds appropriated to the Safe Schools Fund. Furthermore, the proposed legislation will require that distributions from the Safe Schools Fund be based upon need and prioritizes appropriations to first address full compliance with the special education video requirements and then safe school entry ways. The proposed legislation will also require the West Virginia Board of Education (WVBE) promulgate rules to establish a process by which public schools may submit requests for distributions from the Safe Schools Fund. • W. Va. Code § 18-5G-1(i) – Authorization of Public Charter Schools –the proposed legislation includes the following language: “It is the intent of the Legislature that public charter school students be considered as important as all other school students in the state and, to that end, comparable funding levels from existing and future sources should be maintained for public charter school students.” This language could potentially be contradictory to the provisions of W. Va. Code § 18-5G-5 which currently limits state aid funding allocations to public charter schools to 90% of the per pupil total basic foundation allowance follow the student to the public charter school (amended to 99% in this proposed legislation). Even so, there is not any expected additional cost to the WVDE under this provision. • W. Va. Code § 18-5G-2(1)(A) – Definitions – Clarifying that a charter school applicant can be an institution of higher education. The WV Legislature may want to contact the West Virginia Higher Education Policy Commission (WVHEPC) for potential fiscal impact information that may result from the enactment of this proposed legislation. • W. VA. Code § 18-5G-3 – Governance of Public Charter Schools o W. Va. Code § 18-5G-3(b)(4)(A) – The proposed language added to this section by the provisions of this legislation relates to institutions of higher education’s acceptance of dual credit courses. The WVDE recommends that legislators contact the WVHEPC for potential fiscal impact information that may result from the enactment of this proposed legislation. o W. Va. Code § 18-5G-3(b)(4)(D) – The proposed new language in this section explicitly allows public charter schools to offer before and after school programs that is not regulated as a childcare facility; therefore, any potential cost would be borne directly by public charter schools that choose to utilize the authority granted under this provision. o W. Va. Code § 18-5G-3(b)(6) – The proposed new language in this section allows public charter school students to participate in extracurricular athletic and academic interscholastic activities sponsored by noncharter public schools serving the attendance area in which the charter school is physically located if the public charter school does not sponsor such activities. The cost of authorizing this ability would be borne solely by county boards of education who fund these activities by either local funds of the board or by the fundraising efforts of the various extracurricular groups. The proposed legislation does not appear to consider the ability of virtual charter school students to participate in noncharter public school extracurricular activities. It would not be feasible for public charter school students physically located throughout the state to be required to participate in the extracurricular activities of the physical location of a virtual public charter school. Further clarification should be requested of the West Virginia Secondary School Activities Commission (WVSSAC) to ensure the proposed legislation is not in violation of rules and regulations in place under the commission. o W. Va. Code § 18-5G-3(c) – The provisions in this section just clarify that public charter schools are exempt from all state board policies that are applicable to noncharter public schools; therefore, this section does not have any fiscal impact on the WVDE. • W. Va. Code § 18-5G-4 – WVBE Powers and Duties o W. Va. Code § 18-5G-4(a) – The new provisions of this section clarifies that the West Virginia Public Charter School Board (WVPCSB) is also responsible for creating a catalogue of best practices for public charter schools. Please note that the WV Legislature may want to provide further clarification regarding whether the language is intended to be in addition to, or in conjunction with, the statutory requirements that currently pertain to the WVBE’s responsibility for creating a catalogue of best practices for public charter schools. o W. Va. Code § 18-5G-4(b)(6) – The provisions of this section requires the WVBE to establish a framework and procedures to facilitate open communication and records transfers between county boards of education and public charter schools. • W. Va. Code § 18-5G-5 – Relating to the WVBE Public Charter School Rule o W. Va. Code § 18-5G-5(a) –This proposed legislation amends the current statute to require the WVBE rule to state that 99% of the per pupil total basic foundation allowance follow the student to the public charter school. The statute currently states that 90 percent of the funding is to follow the student. The WVDE does not anticipate any additional costs to the State under the Public School Support Plan (PSSP) as a result of this proposed legislation because State Aid funding provided under the PSSP would shift from county boards of education to public charter schools; therefore, the WVDE does not anticipate any additional cost to the State under Fund 0313, Appropriation 05900—Increased Enrollment due to the methodology used in the calculation of the funding appropriation being partially driven by the percentage allowed under this statute. The additional cost to the State is estimated to be approximately $240,000 to apply the percentage increase for public charter schools consistently. o WVC 18-5G-5(a)(3) – The proposed language added in this section allows a public charter school to invoice other West Virginia public school districts in the succeeding year following a student’s transfer into a public charter school if the transfer takes place after the October 1st certified enrollment date. WVDE does not anticipate any additional costs to the State under this proposed revision; however, there would be a shift in the receiving school district of the basic state aid allowance and state special education allocations. This statute is written similarly to W. VA. Code § 18-5-16 which allows county boards of education to invoice one another for mid-year student transfers occurring after the certified enrollment date. • W. Va. Code § 18-5G-12(a) – Access to public facilities - The additional language included by the provisions of this proposed legislation forbids county boards of education from initiating or executing the sale or transfer of a facility that is not in use in whole, or in part, for classroom instruction after a request for usage has been made by a public charter school. WVDE suggests that an expert in contract law be questioned as to the legality issues that may exist under the proposed legislation. “Execution of the sale” as stipulated in the proposed legislation generally means the closure of a sales transaction. County boards of education could potentially be held liable in an event that a sales contract is signed to convey transfer of property ownership to a buyer, but the conveyance has not yet been executed. Additionally, based on the language included in the proposed legislation, a county board and potential buyer could complete a large portion of the underlying work that is involved in a real estate transaction and be required to cancel the sale to convey ownership to a public charter school. Under the proposed legislation, a public charter school could potentially intervene amid an agreed to sale that has not been fully executed. Any cost implication associated with this provision would be borne by county boards of education due to potentially being unable to create competition regarding the sale of a facility. • W. Va. Code § 18-5G-15 – WVPCSB - The additional language included in this section under this proposed legislation allows the WVPCSB to expend gifts, grants, and/or donations for the purposes of W. Va. Code § 18-5G et seq. The proposed legislation also permits public charter schools to submit applications for federal funding that may be available for the start-up of the public charter school. • W. Va. Code § 18-9A-15 – Increased Enrollment – The additional language included under the proposed legislation allows public charter schools to be eligible for increased enrollment funding. The estimated cost to the State under the proposed legislation is $2,400,000 which is equal to the supplemental appropriation included under Senate Bill No. 510 that is currently being considered for legislative enactment. This cost will fluctuate annually based on shifts in the enrollment of public charter schools and the potential for additional public charter school establishment.



Memorandum


Please note the effective date of the proposed legislation is not clear. The WVDE would encourage the section increasing the percentage of the per pupil total basic foundation allowance follow the student to the public charter school be effective for the FY2024 because the allocations for FY2023 have already been calculated and the appropriate funding has already been distributed to county boards of education and public charter schools.



    Person submitting Fiscal Note: Sam Pauley
    Email Address: sepauley@k12.wv.us