FISCAL NOTE

Date Requested: February 14, 2022
Time Requested: 10:47 AM
Agency: Education, WV State Board of
CBD Number: Version: Bill Number: Resolution Number:
2525 Introduced HB4579
CBD Subject: Education (K12)


FUND(S):

N/A

Sources of Revenue:

Other Fund County Funded

Legislation creates:

Increases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


There is no additional cost to the State for this proposed legislation since the allowances under the Public School Support Plan (PSSP) are not being increased. Consequently, the entire cost of the proposed legislation will be borne by the county boards of education. The estimated annual cost to the county boards of education for the proposed legislation is $18,720,958.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2022
Increase/Decrease
(use"-")
2023
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 18,720,958 18,720,958
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 18,720,958 18,720,958
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


Under the proposed legislation, county boards of education are required to employ one contracted 180-day substitue at all schools with a greater than 200 student enrollment. Based on school and enrollment data for the 2021-22 school year, there are 489 schools statewide with a greater than 200 student headcount enrollment; therefore, 489 contracted substitutes will be required to be hired under the proposed legislation. The estimated cost to the county boards of education for the additional positions is $18,720,958. The breakdown of this cost is $15,189,328 for salary costs including fixed costs and $3,531,630 for insurance coverage. The salary cost estimate is based on the average annual basic salary for professional educators and is applied at an 85% rate based on language in the proposed legislation. A daily rate was calculated based on a 200 day contract and the rate was then annualized to a 180 day contract. An average fixed charge rate of 8.29% was applied to the salary cost to apply an additional average cost incurred for social security, unemployment, and workers compensation. An average PEIA premium amount of $7,222 was applied for each of the 489 positions.



Memorandum


The proposed legislation states in the proposed statutory reference WV Code 18A-2-3a(2) that contracted substitutes employed under the proposed legislation are not entitled to the rights, privileges and benefits of regular employment. WVDE has interpreted this proposed code section to be exclusive of insurance benefits due to the requirements of the Affordable Care Act (ACA). Under ACA, employers are required to offer insurance coverage to all employees who work a minimum of 30 hours per week or 120 hours per month. By federal law, in conjunction with the provisions of the proposed legislation, county boards of education must offer insurance to these contracted substitute employees. The cost estimate includes an estimated cost for providing PEIA coverage to contracted substitutes. The proposed legislation also prohibits classroom teachers or special education classroom teachers who participate in an individualized education program committee from being required to prepare, or reduce to writing, the individualized education plan (IEP). Under those circumstances, county boards of education would be required to hire additional staff, such as IEP specialists, in order to write IEPs. The estimates contained within this fiscal note do not contemplate such additional costs to the county boards of education.



    Person submitting Fiscal Note: Sam Pauley
    Email Address: sepauley@k12.wv.us