FISCAL NOTE
Date Requested: February 13, 2023
Time Requested: 02:55 PM |
| Agency: |
Education, WV State Board of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3745 |
Introduced |
HB3416 |
|
|---|
| 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 annual cumulative cost to the State under the Public School Support Program (PSSP) for the proposed salary increase for public school professional personnel is $367,904,232.
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 |
367,904,232 |
367,904,232 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
367,904,232 |
367,904,232 |
| 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 cost to the State under the Public School Support Program (PSSP) to increase the minimum salary for teachers to $50,000 is $367,904,232 for fiscal year 2023-24 and annually thereafter.
To achieve the stated goal of increasing the minimum salary for teachers to $50,000, the proposed legislation increases all salaries contained within the state minimum salary table for teachers by $15,703.
This cost estimate includes the estimated increases in Step 1 for professional educator salaries ($290,342,606), Step 3 for fixed charges ($25,627,331), Step 5 for professional student support salaries ($19,915,644), Step 6 for substitute costs ($7,756,456), and retirement ($24,262,195).
Note that county boards of education will incur additional costs for personnel employed in excess of funded, 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. Such county level costs are not included in the above estimates.
The West Virginia Consolidated Public Retirement Board (CPRB) should also be consulted to obtain the additional cost to the State due to the impact of the proposed salary increases on the unfunded retirement liability for the Teachers' Retirement System (TRS).
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.
Please note, the State Board’s operating budget is for administrative costs and normal operations. If unanticipated additional costs to the State Board would arise as a result of the proposed legislation, the State Board’s administrative budget would not be sufficient.
Memorandum
N/A
Person submitting Fiscal Note: Stephanie Abraham
Email Address: stephanie.abraham@k12.wv.us