FISCAL NOTE
Date Requested: March 02, 2017
Time Requested: 01:46 PM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2173 |
Amendment |
HB2561 |
|
|---|
| 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 purpose of this bill is to create additional flexibility for school systems in the use of school aid funds and to create an SBA reserve fund for financially distressed county boards. The total estimated cost to the State under the Public School Support Program for FY18 is $1,815,654. There is no additional cost to the State as the result of the establishment of the SBA reserve fund for financially distressed county boards.
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 |
1,815,654 |
1,815,654 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
1,815,654 |
1,815,654 |
| 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 cost to the State for the proposed legislation is $1,815,654 for the 2017-18 year.
A portion of the additional cost is related to those county boards of education that currently employ less professional educators and service personnel than the allowable amount calculated per the enrollment limits and are therefore funded for the lower number actually employed. The proposed legislation funds the county boards at the enrollment limits even if the personnel are not actually employed by the county board. The estimated cost for funding at the enrollment limits for the 2016-17 year is $421,533. This consists of an increase in Step 1 (Allowance for Professional Educators) of $282,945, Step 2 (Allowance for Service Personnel) of $23,849, Step 3 (Allowance for Fixed Charges) of $26,415, Step 6b (Allowance for Substitutes) of $7,670, Retirement of $25,729 and PEIA of $54,925.
The remaining additional cost is due to the change in the calculation of Step 6a - Allowance for Current Expense. The proposed change is estimated to cost an additional $1,394,121 for the 2017-18 school year.
The estimated cost for the proposed legislation would vary each year depending on the changes in student enrollment and county personnel that sometimes result in county boards of education employing less personnel than allowed by the state aid funding formula (i.e. being under formula). For the 2017-18 funding year for example, one county board of education is under formula in the service personnel category, but for the 2016-17 year, there were no county boards of education below formula for service personnel. The estimated cost for Step 6a will also vary due to square footage changes throughout the state, due to changes in the actual maintenance and operations costs incurred by the county boards of education, and student enrollment.
Memorandum
There are several provisions included in the proposed legislation that would have no fiscal impact on the State.
There is no anticipated cost to the State for the proposed changes to WVC 18-9A-6a. The revised language matches the calculation currently performed by the WV Department of Education (WVDE).
There is no anticipated cost to the State for the additional flexibility granted under WVC 18-9A-7 allowing the use of bus replacement funds up to $200,000 for alternate purposes. This flexibility does not change the way the funding is calculated under the PSSP.
There is no estimated additional cost to the State for the additional proposed flexibility allowing county boards of education to utilize a portion of their Step 7b funding to employ Technology System Specialists (TSS) under 18-9A-10. This flexibility does not increase the overall amount of Step 7b funding. In addition, there is no estimated additional cost to the State to allow flexibility in allowing the county boards of education to spend up to 50% of their Step 7a funds for alternate purposes or up to 50% of their Step 7b funds for alternate purposes.
There is no estimated cost to the State regarding the proposed change to WVC 18-9A-10(a)(4) regarding the timing of the payments by WVDE into the School Building Capital Improvements Fund. WVDE currently transfers the funds in accordance with the expenditure schedule approved by the state budget office as specified in the proposed language.
There is no estimated cost to the State for the establishment of a $600,000 reserve fund for the purpose of making emergency grants to financially distressed county boards. The statute requires the establishment of the reserve fund from funds already available to the SBA and would not require additional appropriation of funds by the Legislature. However, in the initial year of establishment of the fund, there would be $600,000 less funds available for award to county boards of education under other SBA grant programs. There would also be less funds available for other grant programs in years in which the SBA needed to replenish the reserve fund.
Person submitting Fiscal Note: Brenda Freed
Email Address: bfreed@k12.wv.us