FISCAL NOTE

Date Requested: February 08, 2016
Time Requested: 02:13 PM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
2433 Introduced HB4446
CBD Subject: Education (K12)


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 estimated cost to the State for the proposed increase in teachers' salaries is $157,517,358 and the estimated additional cost to the county boards of education for the proposed increase is $29,083,150. 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 $186,600,508. This estimated cost is for both the 2016-17 year and thereafter.



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 0 186,600,508 186,600,508
Personal Services 0 0 0
Current Expenses 0 157,517,358 157,517,358
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 29,083,150 29,083,150
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 2016-17 year and thereafter for a $5,716 across the board increase in the basic teacher salary is $157,517,358. This includes the estimated increases in Step 1 for professional salaries ($115,719,482), Step 3 for fixed charges ($9,975,019), Step 6 for operations and substitute costs ($14,464,935), and retirement ($17,357,922). 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 2016-17 year and thereafter for a $5,716 across the board increase in the basic teacher salary schedule is $29,083,150. 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 $186,600,508 for the 2016-17 year and thereafter.



Memorandum






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