FISCAL NOTE
Date Requested: March 24, 2021
Time Requested: 04:56 PM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3484 |
Originating |
SB711 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
0317
Sources of Revenue:
General Fund
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 under the Public School Support Plan (PSSP) for the 2021-22 year and thereafter is $811,854.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
811,854 |
811,854 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
811,854 |
811,854 |
| 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 $811,854 for the 2021-22 year and thereafter.
Under the existing statute, county boards of education with less than 1400 students are provided additional students for state aid funding purposes, but only the most sparsely populated of the 12 county boards with less than 1400 students (Pocahontas) is funded at the 1400 level. The other 11 counties currently with enrollment of less than 1400 students are given additional students based on the difference between their actual enrollment and 1400 after consideration of their population density compared to that of Pocahontas. These counties are then provided an additional 10% increase in net enrollment capped at a maximum of 1400 students as provided by HB206 passed during the 2019 special legislative session. Under the proposed legislation, districts would be funded at a minimum 1200 student level, increasing the state aid funding and number of funded positions for applicable districts. There are 3 counties who would be impacted by the proposed legislation: Calhoun, Gilmer, and Wirt.
The estimated cost for the proposed legislation for the 2021-22 year is $811,854. This consists of an increase in Step 1 (Allowance for Professional Educators) of $427,929 due to an additional 8.87 funded positions , Step 2 (Allowance for Service Personnel) of $146,040 due to an additional 5.73 funded positions, Step 5 (Allowance for Student Support Personnel) of $28,336 due to an additional 0.62 funded positions, Step 3 (Allowance for Fixed Charges) of $50,172, Steps 6b & 6c (Allowance for Substitutes) of $15,057, Step 9 (Local Share)$2,127 due to a decrease in local share, Retirement of $45,005 and PEIA of $98,335. The total of these amounts would be reduced by a decrease in Step 6a (Allowance for Current Expense) of $84 due to a redistribution of the funding among counties due to the change in enrollment and Steps 7a, 7b, & 7d (Allowance for Improvement of Instructional Programs) of $1,063 due to a decrease in the growth in local share. Note that the local share and corresponding Steps 7a, 7b, & 7d changes are due to the reallocation of funds among the counties under the statutorily prescribed calculations in certain steps, which impacted the local share cap on the three county boards of education that receive zero state aid funding: Tyler, Doddridge, and Marshall.
The estimated cost for the proposed legislation would vary each year depending on the changes in student enrollment. If actual student enrollment continues to decline, the cost to the state would increase accordingly.
Memorandum
Please note that the proposed legislation does not include a one-year hold harmless to the Professional Instructional Personnel requirements under ยง18-9A-4(b). After increasing the number of professional educators funded for Wirt County assuming the 1200 minimum students, the county did not meet the required professional instructional ratio and received a penalty of 0.62 FTE in the fiscal note calculations.
It should be noted that Gilmer County also receives additional students for funding purposes due to students physically located in their county attending Leading Creek Elementary in Lewis County but provided transportation by Gilmer County as set forth in WVC 18-5-11(d). The fiscal note calculation assumed that these additional students would be applied on top of the 1200 minimum net enrollment set forth in the proposed legislation, so the overall funding calculations were based on 1204.5 students for Gilmer County. If the Legislature wants any additional students funded through WVC 18-5-11(d) to be considered before the 1200 minimum is applied so that Gilmer County is funded for only 1200 students, a clarification to the proposed statutory language would be needed.
Person submitting Fiscal Note: Amy Willard
Email Address: awillard@k12.wv.us