|Date Requested: May 23, 2019
Time Requested: 03:15 PM
||Education, WV Department of|
Sources of Revenue:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The total estimated cost to the State under the Public School Support Plan (PSSP) for the proposed legislation for the 2019-20 year is $50,577,254. The total estimated cost for the 2020-21 year and thereafter is $70,842,235.
Fiscal Note Detail
|Effect of Proposal
|1. Estmated Total Cost
|Repairs and Alterations
|2. Estimated Total Revenues
Explanation of above estimates (including long-range effect):
The total estimated cost to the State under the PSSP for the proposed legislation is $50,577,254 for the 2019-20 year and $70,842,235 for 2020-21 and thereafter.
Under the existing statute, county boards of education with less than 1400 students are provided additional students for state aid funding purposes, but only the most sparsely populated of the 11 county boards with less than 1400 students (Pocahontas) is funded at the 1400 level. The other ten counties currently with enrollment of less than 1400 students are given additional students based on the difference between their actual enrollment and 1400 after consideration of their population density compared to that of Pocahontas. Under the proposed legislation, those ten districts would all be funded at the 1400 student level, increasing the state aid funding and number of positions for the districts. The impacted county boards would be Calhoun, Doddridge, Gilmer, Pendleton, Pleasants, Ritchie, Tucker, Tyler, Webster and Wirt. The total estimated cost for the 1400 floor provision is $11,438,038.
Under the proposed legislation, the current local share percentage of 90% is reduced to 85% percent for FY20 and 80% percent for fiscal year 2020-21. The legislation also caps each county's local share at the 2015-16 level. The reduction in local share will eliminate growth currently projected for FY20, thereby reducing the funding for Steps 7a, 7b, and 7d which capture a portion of the local share growth. The total estimated net cost impact of the local share changes (after the Step 7 reductions) is $36,750,104 for the 2019-20 year and $57,015,085 for the 2020-21 year and thereafter.
The legislation also proposes to increase the funding for alternative education from the current $18 per pupil to $27 per pupil, an increase of $9 per pupil. Based on the 2018-19 net enrollment count of 265,456.41 students, the total estimated cost for the alternative education change is $2,389,112.
See the chart below for the step-by-step PSSP implications of the proposed legislation:
Step 1 - Allowance for Professional 6,131,961 6,131,961 Educators
Step 2 - Allowance for Service 2,091,861 2,091,861
Step 3 - Allowance for Fixed 699,845 699,845 Charges
Step 6a - Allowance for Current 2,188 2,188
Step 6b & c - Allowance for 205,445 205,445 Substitutes
Step 7a - Allowance for the Improvement of Instructional Programs (1,982,728) (1,982,728)
Step 7b- Allowance for the Improvement of Instructional Technology
Step 7d - Allowance for Teacher and Leader Induction (3,965,457) (3,965,457)
Step 9 - Local 46,663,746 66,928,727 Share 1,642,568 1,642,568
Retirement 664,170 664,170
Alternative Education 2,389,112 2,389,112
Total Estimated Cost to the 50,577,254 70,842,235 State
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