FISCAL NOTE
Date Requested: February 23, 2016
Time Requested: 12:03 PM |
| Agency: |
State Board of Education |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1153 |
Revised |
SB373 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
Sources of Revenue:
Other Fund County
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Potential loss of shared services provided to the counties. Currently, these shared services account for approximately $11.5 million in savings to the counties
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 |
0 |
0 |
| Personal Services |
0 |
-11,561,000 |
-11,561,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-11,561,000 |
-11,561,000 |
Explanation of above estimates (including long-range effect):
The bill fails to create the necessary statutory scheme to employ RESA personnel. RESA employees are will and pleasure employees of the West Virginia Board of Education (WVBE) which allows us to employ them anywhere in the state, across county lines, for any period of time. It would be difficult for RESAs, as eight separate agencies, to claim the individuals are state employees and share them across counties. If eight separate agencies exist, the employees would no longer be will and pleasure employees of the WVBE, nor could they be traditional employees of an Local Education Agency (LEA). Statute makes clear in instances where non-traditional employment structures are to be utilized, processes are clearly defined (e.g. multi-county vocational technical centers, cross-county schools). Because eight separate agencies cannot practically be will and pleasure state employees, shared services are in jeopardy.
Under the proposed model, RESAs will no longer be able to serve as the employee repository to provide shared services to counties. West Virginia Code 18a-4-8d prescribes the only statutory model for shared services, which is exclusively limited to central office administrative personnel. Particularly because each county population is varied, and there is immense benefit in centralized hiring, assigning, and division of labor, costs could be as high as the estimated $11.5 million. Because RESA employees are currently will and pleasure employees of the WVBE, the individuals must not be considered for seniority, contract status, etc. Counties can easily utilize shared personnel either for temporary needs (e.g. a child is in a wheelchair for a brief period of time due to an injury, and a county can utilize a shared service briefly outside the scope of traditional county personnel laws) for ongoing needs that do not rise to the level of a full time, or even part-time employee. This structure also allows these employees to be eligible for benefits which are of critical import to professionals.
Additionally, the committee substitute does not indicate the status of the current state appropriation, of $3.5 million, to the RESAs. Will the funding stay with the West Virginia Department of Education? Will the funding continue to flow into the RESAs? If so, will the money go to the RESA fiscal agent for distribution to the RESAs? Will the money go directly to the RESAs?
If the RESA line item funding was lost, the counties within each RESA would need to submit approximately $400,000 - $500,000 to the RESAs in order for the RESAs to continue operating at their current funding level.
Memorandum
Person submitting Fiscal Note: Jason Butcher
Email Address: jlbutcher@k12.wv.us