FISCAL NOTE
Date Requested: February 28, 2018
Time Requested: 09:47 AM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2468 |
Comm. Sub. Eng. |
SB507 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
0317/0313
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense, Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Under the Public School Support Plan (PSSP), the proposed legislation is cost neutral to the State but would result in a detrimental loss of state aid funding to the county boards of education. In addition, there would be an additional cost to the State for the creation and operation of the Katherine Johnson Academy.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| 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):
Although the proposed legislation is anticipated to be cost neutral to the State under the Public School Support Plan (PSSP), it will reduce state aid funding to county boards of education. For students enrolled in residential academy programs, the county board of education will lose all state aid funding for the student. The statewide average state aid per pupil for the 2017-18 school year is $4,013.10. For students enrolled in commuter academy programs, the county board of education will receive state aid funding for the student but then be required to pay 90% of the statewide average state aid per pupil into the Katherine Johnson Scholarship Fund, or $3,611.79 (based on the 2017-18 year). Loss of this state aid funding will be detrimental to the county boards of education, because the county boards will still have the same number of schools to operate, buses to run, etc. but with less state aid funding to do so. It is unclear how many students will enroll in the Academy programs annually, making it difficult to calculate an estimated statewide total loss in state aid funding to the county boards of education.
There is no estimated cost to the State under the PSSP for the proposed legislation. For students who enroll in a commuter academy program, the student will still be counted in the net enrollment of the county board of education of residence since the student will be receiving high school credit and ultimately graduate from their home high school. For students who enroll in a residential program, the funding for the student shifts out of the PSSP and into a separate line item appropriation to the West Virginia Department of Education for distribution to the Katherine Johnson Scholarship Fund.
There would be a cost to the State for the creation and expenses of the Katherine Johnson Academy (Academy). Example expenses of the Academy include but are not limited to: travel and other expenses for trustees, the salary and benefits of the chief executive officer of the academy, the salary and benefits of any other "necessary personnel," and any general operating expenses. Since it does not appear under the proposed legislation that the Academy will be part of the West Virginia Department of Education, we are unable to predict the potential salary level of the new staff and have not attempted to estimate the operational costs for the new Academy.
Memorandum
On Line 6 of page 12 of the Engrossed Committee Substitute for SB507, there is a technical correction necessary under WVC 18C-9-5. The legislation should read "amount equal to 90 percent of the state per pupil allocation for the previous fiscal year" instead of referring to the county per pupil allocation. The definition for county per pupil allocation was removed from the introduced version of the bill because the use of the county per pupil allocation could result in zero funding into the scholarship fund for students who reside in a county where the local share exceeds the total basic program allowance of the county.
The cost estimates provided above assume that this technical correction has been made.
Person submitting Fiscal Note: Brenda Freed
Email Address: bfreed@k12.wv.us