FISCAL NOTE
Date Requested: January 25, 2023
Time Requested: 04:50 PM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2887 |
Introduced |
HB3021 |
|
|---|
| CBD Subject: |
|
|---|
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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.
This legislation, in its current form, will have fiscal impact on the WVDE because it stipulates that 3-year-olds are eligible for enrollment in early childhood education programs which are funded by State under the Public School Support Plan (PSSP).
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 |
0 |
62,249,819 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
62,249,819 |
| 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 estimated total cost to the State under the Public School Support Plan (PSSP) to allow children who have attained the age of 3 to be enrolled in an early childhood education program would flucuate based on participation rates. A review of the the "Expansion of West Virginia Universal Pre-K To Include Three-Year-Olds: Analysis and Recommendations" study, published by the National Institute for Early Education Research in December 2020, the enrollment of 3-year-olds in other states and localities with universal access to Pre-K is typically 60%-80% of 4-year-old enrollment; therefore, upon full implementation of the provisions of this bill, the estimated cost of $62,249,819 to extend early childhood education programs to 3-year-olds is based on 75% of the 4-year-old Pre-K enrollments
The 75% of 4-year-old Pre-K enrollment cost estimate under the PSSP includes the estimated increase for Step 1 for professional educator salaries ($32,411,026), Step 2 for service personnel salaries ($11,009,196), Step 3 for fixed charges ($3,771,908), Step 5 for student support personnel salaries ($2,244,525), Step 6 for substitute costs ($1,141,619), retirement ($3,534,451), and PEIA premiums ($8,137,094).
As previously mentioned, enrollment in early childhood education programs of 3-year-olds in other states and localities with universal access to Pre-K is typically 60%-80% percent of 4-year-old enrollment. A summary of the estimated total costs to the State under the PSSP at various participation rates is provided below:
80% Participation: $66,340,258
70% Participation: $58,055,857
65% Participation: $53,965,418
60% Participation: $49,771,455
Based on the study conducted by the National Institute for Early Education Research, it is anticipated that full enrollment will not be attained for 5-10 years after implementation. Please note, that the first year of Pre-K for 4-year-olds enrollment was approximately 40% of the enrollments by the tenth year. Therefore, the estimate for the first year of implementation in school year 2025, which impacts FY2026 state aid computations, are based on 40% of the eventual projected 75% of 4-year-old Pre-K enrollment, which equates to an estimated $24,853,207.
It is important to note that county boards of education may incur additional costs for personnel employed in excess of funding, personnel employed in positions not eligible for state aid funding, personnel employed using other funding sources such as state or federal grants, and extended employment terms for professional personnel. However, county level costs are not included in the estimate provided in this fiscal note.
Memorandum
Since the PSSP funding is based on the student enrollment counts for the preceding year, funding for the 3-year olds who would first be permitted to enroll in public Pre-K during the 2024-25 school year would not be included in the final county-specific state aid calculations for the 2024-25 year. The WVDE would need to allocate additional funds appropriated for this purpose under the PSSP to the county boards of education based on the actual 3-year-old enrollment counts collected on October 1, 2024. If county boards of education will receive funding for 3-year-old students from this separate PSSP allocation, the 3-year olds should not also be counted in the allocation of the increased enrollment funding for the 2024-25 year to ensure that the State is not funding the 3-year-old students twice. Excluding them from the increased enrollment calculations for 2024-25 year would require a statutory amend for that year only, as the program progresses, the funding can be adjusted through the annual Increased Enrollment allocation in all subsequent years.
Person submitting Fiscal Note: Samuel E. Pauley
Email Address: sepauley@k12.wv.us