FISCAL NOTE
Date Requested: February 04, 2026
Time Requested: 05:18 PM |
| Agency: |
Education, WV State Board of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3675 |
Introduced |
SB745 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
0313
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.
This fiscal note is being updated to reflect the amendments in the Committee Substitute for Senate Bill 745, which includes a provision for schools to apply for a waiver from the West Virginia Department of Education's Office of School Nutrition when items are not available, eliminating the fiscal impact reflected in the original fiscal note as stated below.
As introduced, this legislation added a list of food additives that will be deemed unsafe and not permitted as ingredients in school meals. In the introduced form, it would have a significant financial impact on West Virginia schools’ ability to provide nutritious, well-balanced meals. While the exact cost cannot be precisely calculated due to multiple variables, the potential impacts are substantial. The Office of Child Nutrition reviewed products currently used in school meals and found that more than 80% of commercial products would be disallowed under this bill. Replacement items would largely need to be organic or whole foods, many of which are limited in availability and cost 20–50% more. In some cases, such as bread, there are not enough local or organic suppliers to meet statewide demand. Other commonly used and student-preferred items, such as pepperoni for pizza and pepperoni rolls, would also be difficult or impossible to procure. To meet these requirements using whole foods, schools would likely need to add one to two additional cooks per school. Federal reimbursement rates would not increase to offset these added food and labor costs, leaving schools responsible for the full financial burden. Additionally, schools rely on approximately $8 million in USDA Foods entitlement each year to purchase products available through the Donated Foods Program. Many of these products would not meet the bill’s requirements, resulting in the loss of this benefit and further increasing food costs. In a worst-case scenario, the added restrictions could prevent schools from producing meals that meet federal meal pattern requirements. Only compliant meals are eligible for reimbursement. West Virginia schools receive approximately $160 million annually in federal meal reimbursements; if 80% of meals were no longer reimbursable, schools could lose up to $128 million. This figure represents the cost estimate used for the fiscal note.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
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):
This fiscal note is being updated to reflect the amendments in the Committee Substitute for Senate Bill 745, which includes a provision for schools to apply for a waiver from the West Virginia Department of Education's Office of School Nutrition when items are not available, eliminating the fiscal impact reflected in the original fiscal note as stated below.
Memorandum
N/A
Person submitting Fiscal Note: Tina Payne
Email Address: tina.a.payne@k12.wv.us