FISCAL NOTE

Date Requested: February 13, 2017
Time Requested: 01:53 PM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1483 Introduced HB2401
CBD Subject:


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 purpose of this bill is to increase teachers' salaries in order to be competitive with other states. The estimated cost to the State for the proposed increase in teachers' salaries is $155,476,723 and the estimated additional cost to the county boards of education for the proposed increase is $28,511,338. The total combined estimated cost for both the State and the county boards of education for the salary increase contained in the proposed legislation is $183,988,061. This estimated cost is for both the 2017-18 year and thereafter.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 183,988,061 183,988,061
Personal Services 0 0 0
Current Expenses 0 155,476,723 155,476,723
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 28,511,338 28,511,338
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 2017-18 year and thereafter for a $5,716 across the board increase in the basic teacher salary is $155,476,723. This includes the estimated increases in Step 1 for professional salaries ($114,228,729), Step 3 for fixed charges ($9,835,094), Step 6 for operations and substitute costs ($14,278,591), and retirement ($17,134,309).
    
    The county boards of education would also incur additional costs for the salary increase 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 2017-18 year and thereafter for a $5,716 across the board increase in the basic teacher salary schedule is $28,511,338. This includes the estimated increases in professional salaries, fixed charges, and retirement. 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 teacher salary increase contained in the proposed legislation is $183,988,061 for the 2017-18 year and thereafter.



Memorandum


    



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