FISCAL NOTE

Date Requested: January 14, 2016
Time Requested: 11:00 AM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
1181 Introduced SB113
CBD Subject: Salaries


FUND(S):



Sources of Revenue:

Other Fund N/A

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The estimated cumulative cost to the State for all five years of proposed increases is $275,572,555. The estimated cumulative cost to the county boards of education for all five years of proposed increases is $50,880,249. The total combined estimated cost for both the State and the county boards of education for the five year teacher salary increase contained in the proposed legislation is $326,452,804.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 32,645,300 326,452,804
Personal Services 0 0 0
Current Expenses 0 27,557,275 275,572,555
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 5,088,025 50,880,249
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) for the 2016-17 year for a $1,000 across the board increase in the basic teacher salary schedule is $27,557,275. This includes the estimated increases in Step 1 for professional salaries, Step 3 for fixed charges, Step 6 for operations and substitute costs, and retirement. The additional incremental estimated cost to the State for a $1,500 per year across the board increase in the basic teacher salary schedule for year 2017-18 is $41,335,821 and the estimated annual incremental cost for a $2,500 per year across the board increase in the basic teacher salary schedule for years 2018-19, 2019-20 and 2020-21 is $68,893,153 per year. These estimated costs include the estimated increases in Steps 1, 3, 6 and retirement. The total estimated cumulative cost to the State for all five years of proposed increases is $275,572,555.
    
    The county boards of education would also incur additional costs for the salary increases for the counselors and nurses included in Step 5 of PSSP since the allowance is fixed at the 2012-13 amount, for all professional personnel over formula, and for all other professional personnel employed from other funding sources. The estimated cost to the county boards of education for the 2016-17 year for a $1,000 across the board increase in the basic teacher salary schedule is $5,088,025. This includes the estimated increases in professional salaries, fixed charges and retirement. The additional incremental estimated cost to the county boards of education for a $1,500 per year across the board increase in the basic teacher salary schedule for year 2017-18 is $7,632,038 and the estimated annual incremental cost for a $2,500 per year across the board increase in the basic teacher salary schedule for years 2018-19, 2019-20 and 2020-21 is $12,720,062 per year. These estimated costs include the estimated increases in salaries, fixed charges and retirement. The total estimated cumulative cost to the county boards of education for all five years of proposed increases is $50,880,249. Please note that the estimated cost to the county boards of education does not include the additional cost for extended contract terms.
    
    The total combined estimated cost for both the State and the county boards of education for the five year teacher salary increase contained in the proposed legislation is $326,452,804.



Memorandum


    



    Person submitting Fiscal Note: Brenda Freed
    Email Address: bfreed@k12.wv.us