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.
The proposed legislation is expected to increase costs to the State due to private and parochial school students enrolled in residential programs currently not covered through the Public School Support Plan (PSSP). It will also have a detrimental impact on county boards of education, who will lose state aid funding for public school students and who will have to use state aid funding received for public school students to pay for private and parochial students from their county who enroll in commuter programs. 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):
The proposed legislation is anticipated to have a cost to both the State and to the county boards of education. The cost to the State is due to amounts which will be included in the appropriation for students enrolled in a residential academy program who are currently private or parochial students. There is no current cost under the Public School Support Plan (PSSP) for private or parochial students - only those students enrolled in public schools. For each private and parochial student enrolled in a residential program, the State will incur an additional cost of $4,013.10 (based on the 2017-18 statewide average state aid per pupil). We are unable to predict the number of private and parochial students who will enroll in a residential program. There will be no additional cost to the State for existing public school students, as the funding for residential academy students will simply shift from the PSSP to a separate line item appropriation.
County boards of education will lose state aid funding for their students who enroll in residential academy programs, at an estimated $4,013.10 per student. In addition, the proposed legislation requires county boards of education 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) for any student enrolled in a "local secondary school in their county" which includes public, private and parochial school students. County boards of education do not receive state aid funding for students enrolled in private or parochial schools, so they will be required to use state aid funding paid to the county (for students who actually are enrolled in the public schools of their county) to pay for private and parochial students to enroll in commuter academy programs. County boards will also lose 90% of the funding for the public school students from their county who enroll in a commuter program. 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 commuter academy programs annually, making it difficult to calculate an estimated statewide total loss in state aid funding to the county boards of education.
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