FISCAL NOTE
Date Requested: February 06, 2019
Time Requested: 11:30 AM |
| Agency: |
Education, WV State Board of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3039 |
Introduced |
HB2865 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
N/A
Sources of Revenue:
General Fund N/A
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The total estimated net cost savings to the State for the 2019-20 year under the Public School Support Plan for the proposed legislation is $23,003,423. The net cost savings to the State would vary annually depending on the actual enrollment in Advanced Placement, International Baccalaureate, and Dual Credit courses.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-23,003,423 |
-23,003,423 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
-23,003,423 |
-23,003,423 |
| 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):
The total estimated net cost savings to the State under the Public School Support Plan (PSSP) for the proposed legislation is $23,003,423. The proposed legislation would eliminate the requirement for the Legislature to appropriate $24 million dollars annually for the State Board of Education to transfer into the School Construction Fund operated by the School Building Authority. That $24 million in savings to the State is offset by an estimated increased cost under Step 7c of PSSP of $996,577. If the Legislature were to continue to appropriate the $24 million to the SBA through a direct appropriation during the budget process, there would be no cost savings to the State related to that portion of the proposed legislation.
Currently, Step 7c Is calculated by multiplying the unduplicated count of students enrolled in Advanced Placement, Dual Credit or International Baccalaureate courses by 1% of the prior year state aid per pupil amount. For the 2019-20 year, the current statutory calculation would cost $644,087. The proposed legislation would calculate the funding for Advanced Placement by multiplying the total number of students enrolled in AP courses by $50 ($910,150), the funding for Dual Credit by multiplying the total number of
students enrolled in Dual Credit courses by $50 ($721,800) and the funding for International Baccalaureate courses by multiplying the total number of students enrolled in such courses by 1% of the prior year state aid per pupil ($8,714). The total revised Step 7c amount under the proposed legislation would be $1,640,664, which is an increase of $996,577 over the original 2019-20 amount of $644,087.
The proposed legislation would also change the allocation methodology for Step 7b of the PSSP. Currently, county boards of education each receive a base amount of funding of $30,000 per county, with any remaining funds distributed proportionately on the basis of the average of each county's average dally attendance and the county's second month net enrollment. The proposed legislation would change the base amount to $60,000 per county with the remaining funds allocated using the existing methodology. There is no cost to
the State for this proposed change since the total Step 7b allowance amount Is not being changed, but the proposed based amount change will modify the total amount of funding that each county board of education will receive under Step 7b of the funding formula. Counties with a lower student enrollment count will benefit from the proposed change.
Memorandum
Person submitting Fiscal Note: Brenda Freed
Email Address: bfreed@k12.wv.us