FISCAL NOTE

Date Requested: January 12, 2022
Time Requested: 03:52 PM
Agency: Education, WV State Board of
CBD Number: Version: Bill Number: Resolution Number:
1109 Introduced SB18
CBD Subject:


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.


Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government. The estimated cumulative cost to the State under the Public School Support Program (PSSP) for three years of proposed increases is $190,635,924. The estimated cumulative cost to the County Boards of Education for three years of proposed increases is $40,225,740. The total estimated combined cumulative cost to the State and County Boards of Education for an across the board increase in the basic teacher salary schedule for three years of proposed increases is $230,861,664.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2022
Increase/Decrease
(use"-")
2023
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 76,953,888 230,861,664
Personal Services 0 0 0
Current Expenses 0 63,545,308 190,635,924
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 13,408,580 40,225,740
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years. The estimated costs to the State under the Public School Support Program (PSSP) for an across the board increase in the basic teacher salary schedule includes the estimated increases in Step 1 for professional educator salaries, Step 5 for professional student support personnel salaries, Step 3 for fixed charges, Step 6 for substitute costs, and retirement. The total incremental estimated annual cost for a $2,700 across the board increase for fiscal years 2022-23, 2023-24, and 2024-25 is $63,545,308 per year. The total estimated cumulative cost to the State upon full implementation for all three years of proposed increases is $190,635,924. The county boards of education would also incur additional costs for the salary increases for professional educators and professional student support personnel not funded by the PSSP. The additional incremental estimated annual cost to the County Boards of Education for a $2,700 per year across the board salary increase for fiscal years 2022-23, 2023-24, and 2024-25 is $13,408,580 per year. The total estimated cumulative cost to the County Boards of Education upon full implementation for all three years of proposed increases is $40,225,740. This estimated cost includes the cost of the additional salary and all related benefits. The total estimated combined cumulative cost to the State and County Boards of Education upon full implementation for the proposed across the board increases in the basic teacher salary schedule for the three-year period is $230,861,664. 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


Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form. In order to properly update State code, three separate salary tables reflecting the changes made for fiscal years 2022-23, 2023-24, and 2024-25 will need added to the bill language.



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