FISCAL NOTE

Date Requested: January 20, 2023
Time Requested: 03:27 PM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2959 Comm. Sub. SB274
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 estimated cost to the state for the proposed legislation upon full implementation is $96,767,698 and creates approximately 2,491 new jobs in WV. The cost for the proposed legislation would be $33,698,977 in fiscal year 2023-24, $32,125,829 in fiscal year 2024-25, and $30,942,892 in fiscal year 2025-26 due to the proposed 3-year phase-in. The full cost estimate provided would be borne by the state under the public school support plan (PSSP) due to the fact that the proposed legislation states that the school aid formula allowance for service personnel will be amended to increase the number of state funded per 1,000 students in net enrollment to provide state funding for the added positions.



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 33,698,977 96,767,698
Personal Services 0 0 0
Current Expenses 0 33,698,977 96,767,698
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):


Based on 2022-23 current class sizes, there are 881 pre-k classrooms, 698 kindergarten classrooms with more than 10 students, and 868 first grade, 826 2nd grade, and 797 3rd grade classrooms with more than 12 students. However, WVBE Policy 2510 includes a requirement that all Pre-K classrooms and all Kindergarten classrooms with more than 10 students are required to have an ECCAT; therefore, county boards of education are already employing the 1,579 ECCATs at these two grade levels using funds provided under the current statutory ratios. Only an additional 2,491 ECCATs would be required statewide in order to meet the limits under the proposed legislation over the 3-year phase-in period for 1st through 3rd grades. The proposed legislation states that to fund the additional ECCAT positions, the service personnel ratios in W. Va. Code 18-9A-5 under the Public School Support Plan (PSSP) will be increased, effective for the 2023-2024, 2024-25, and 2025-26 funding years under the following phase-in requirement: Pre-K through 1st grade - FY24, 2nd grade - FY25, and 3rd grade FY26. The service personnel ratios in W. Va. Code 18-9A-5 under the PSSP are appropriately adjusted within the proposed legislation to increase the number of service personnel positions funded per 1,000 students upon full implementation by 9.82 phased in as follows: 3.42 in FY24, 3.26 in FY25, and 3.14 in FY26 for an aggregate increase of 9.82. These ratios will provide funding for an additional 868.50 positions in FY24, 826.92 positions in FY25, and 796.58 positions in FY26 for a total 2,491 estimated increase in positions under the proposed legislation. Total service personnel ratios under the phase-in language within the proposed legislation are as follows: FY24: 47.39 – sparse, 47.95 – low, 48.52 – medium, 49.10 – high FY25: 50.65 – sparse, 51.21 – low, 51.78 – medium, 52.63 – high FY26: 53.79 – sparse, 54.35 – low, 54.92 – medium, 55.50 – high The estimated cost upon full implementation of $96,767,698 includes the estimated cost for the salaries, fixed costs, current expense/substitute costs, retirement and PEIA for these additional positions and is broken down as follows: Step 2 - Allowance for Service Personnel - $66,438,796; Step 3 - Allowance for Fixed Charges - $5,487,845; Step 6c - Allowance for Service Substitutes - $1,660,970; Retirement - $5,195,514; PEIA – $17,984,573; Total: $96,767,698 A breakdown of the cost estimate increase by year is as follows: Estimate year 1 Step 2 - Allowance for Service Personnel - $23,136,708; Step 3 - Allowance for Fixed Charges - $1,911,092; Step 6c - Allowance for Service Substitutes - $578,418; Retirement - $1,809,291; PEIA - $6,263,468 Total: $33,698,977 Estimate year 2 Step 2 - Allowance for Service Personnel - $22,057,138; Step 3 - Allowance for Fixed Charges - $1,821,920; Step 6c - Allowance for Service Substitutes - $551,428; Retirement - $1,724,868; PEIA - $5,970,475 Total: $32,125,829 Estimate year 3 Step 2 - Allowance for Service Personnel - $21,244,950; Step 3 - Allowance for Fixed Charges - $1,754,833; Step 6c - Allowance for Service Substitutes - $531,124; Retirement - $1,661,355; PEIA - $5,750,630 Total: $30,942,892



Memorandum


The actual cost to the state will change annually depending on student enrollment. While there may be an associated cost to be solely borne by county boards of education relating to the portion of the proposed legislation pertaining to the requirement for in-service training to be provided to ECCATs relating to their responsibilities and appropriate measures for exercising authority and control over students, the cost of implementation is indeterminable at this time. WVBE Policy 2510 includes a requirement that all Pre-K classrooms and all Kindergarten classrooms with more than 10 students are required to have an ECCAT. Therefore, county boards of education are currently baring the cost of employing a portion of the cost estimate provided. The utilization of ECCATs in Grade 1-3 classrooms will assist with children’s overall academic, as well as social and emotional development. Current coursework for ECCATs focuses on the pre-k and kindergarten grades, but expansion of current coursework to include first through third grades will allow additional coursework to focus on the following areas: 1. Early Learning Child Development 2. Early Learning Special Needs Education 3. Early Learning Literacy Education 4. Early Learning Mathematics Education Each course will be designed to include a blend of both face-to-face or online learning instruction by an ECCAT instructor as well as practical observations and experiences in a WV Universal Pre-K, kindergarten, Grade 1, Grade 2, and/or Grade 3 classroom.



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