FISCAL NOTE
Date Requested: January 21, 2026
Time Requested: 10:32 AM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2004 |
Introduced |
SB437 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
0317
Sources of Revenue:
General Fund
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The proposed Committee Substitute for Senate Bill 437, as provided by the Senate Education Committee, has fiscal impact on the West Virginia Department of Education (WVDE) at an estimated cost of $45,925,235 under the Public School Support Plan (PSSP) for the 2026-27 school year and each subsequent year.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
45,925,235 |
45,925,235 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
45,925,235 |
45,925,235 |
| 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 Committee Substitute version, in its current form, would amend the Public School Support Plan to establish a three-tier special education net enrollment adjustment factor for county boards of education. Under the proposal, special education students would be assigned to tiers based on the intensity of services required, and each tier would be assigned an adjustment factor that increases a county’s net enrollment for state aid funding purposes. For example, a student assigned an Individualized Education Program (IEP) as defined by federal regulations would generate more than one FTE of net enrollment, on a tiered basis, due to the application of the adjustment factor, thereby increasing the amount of state aid allocated to the county board of education.
The three special education tiers created by this committee substitute and currently defined as level I, level II, and level III needs in the West Virginia Board of Education (WVBE) Policy 2419 are as follows:
• Tier 1 includes students with moderate special education needs. (1.1 adjustment factor)
• Tier 2 includes students requiring higher-intensity instructional or related services; (1.2 adjustment factor)
• Tier 3 includes students with the most intensive special education needs, requiring highly specialized services and staffing. (1.3 adjustment factor)
Data utilized in the cost proposal was based upon live special education enrollment data, in which county boards of education were surveyed to categorize students into the tiers identified under the proposed legislation. Upon passage, county boards of education will be mandated to certify their enrollment counts within these tiers. The new certification process is not expected to materially impact the cost estimate. Parameters with will be enforced by the WVDE to ensure data accuracy and quality. Further procedures will be implemented to ensure compliance with tier identification.
The estimated cost for the proposed legislation for the 2026-27 year is $45,925,235. This consists of an increase in Step 1 (Allowance for Professional Educators) of $21,478,323 due to an additional 399.64 funded positions, Step 2 (Allowance for Service Personnel) of $9,006,757 due to an additional 299.78 funded positions, Step 5 (Allowance for Student Support Personnel) of $1,486,629 due to an additional 27.58 funded positions, Step 3 (Allowance for Fixed Charges) of $2,615,286, Steps 6b & 6c (Allowance for Substitutes) of $799,293, Retirement of $2,433,047 and PEIA of $8,105,900.
The total portion of the overall additional cost attributable to professional educators is $29,862,612 the portion attributable to service personnel is $13,996,578, and the portion attributable to professional student support personnel is $2,066,045.
The West Virginia Consolidated Public Retirement Board (CPRB) should also be consulted to obtain information relating to the additional cost, if any, to the State due to the impact of the proposed staffing increases on the unfunded retirement liability of the Teachers' Retirement System (TRS).
This cost estimate does not assume the passage of other legislation that may impact the PSSP, resulting in an increased costs for the personnel increases provided in this bill.
Memorandum
The Legislature may want to consider stipulating that the additional weights be applied after the 1400 calculation to ensure those counties receive the same fiscal benefit as other county boards of education. Further, a hold harmless provision for professional instructional personnel ratios should be included to allow county boards of education reasonable time to be compliant.
Person submitting Fiscal Note: Tina Payne
Email Address: tina.a.payne@k12.wv.us