FISCAL NOTE
Date Requested: February 13, 2023
Time Requested: 04:49 PM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3744 |
Introduced |
HB3413 |
|
|---|
| 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.
This legislation, in its current form, will have fiscal impact on the WVDE in an estimated amount of $1,807,272 annually beginning with the 2023-24 school year. These funds will be allocated under the Public School Support Plan and will fluctuate annually depending on the number of teachers employed and their years of experience.
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 |
1,807,272 |
1,807,272 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
1,807,272 |
1,807,272 |
| 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):
This proposed legislation, in its current form, will have fiscal impact on the WVDE. Specifically, the total estimated cost to the State under the Public School Support Plan (PSSP) is approximately $1,807,272 because it increases the number of years of service where teachers stop getting raises from 35 to 40.
Based on data from the 2022-23 Certified List of Personnel, it is estimated that there are 784 state aid eligible professional employees with 36+ years of experience. An increase in their annual salary based on their years of experience is broken down as follows:
• 36 years experience - $657; currently 166 state aid eligible positions employed
• 37 years experience - $1,245; currently 148 state aid eligible positions employed
• 38 years experience - $1,833; currently 106 state aid eligible positions employed
• 39 years experience - $2,421; currently 100 state aid eligible positions employed
• 40+ years experience - $3,009; currently 264 state aid eligible positions employed
The increase in salaries would also increase funding under Steps 1 & 5 – Allowance for Professional and Student Support Personnel respectively by $1,524,096, Step 3 - Allowance for Fixed Charges by $125,890, Step 6c - Allowance for Substitutes by $38,102, and Retirement by $119,184 for a total estimated cost to the State of $1,807,272.
Please 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; however, WVDE lacks the data necessary to calculate the cost to county boards so those costs are not included in the above estimates.
The Legisalture may want to consult with the West Virginia Consolidated Public Retirement Board (CPRB) for impact on the unfunded retirement liability for the Teachers' Retirement System (TRS).
Additionally, this estimate does not assume the passage of any other legislation that may have impact on the PSSP. If other legislation is enacted, it could result in additional costs for this legislation. This cost estimate does not assume the passage of other legislation.
Memorandum
N/A
Person submitting Fiscal Note: Samuel E. Pauley
Email Address: sepauley@k12.wv.us