FISCAL NOTE

Date Requested: February 16, 2026
Time Requested: 01:36 PM

1759	Introduced	HB5435
Agency:	Education, WV Department of
CBD Number:	Version:	Bill Number:	Resolution Number:
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 purpose of this bill is to increase funding for rural counties in this state by adding a multiplier to the IEP calculation. This proposed legislation, in its current form, has fiscal impact on the West Virginia Department of Education at an estimated amount of $132,523,460 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
Effect of Proposal	2026 Increase/Decrease (use"-")	2027 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	132,523,460	132,523,460
Personal Services	0	0	0
Current Expenses	0	132,523,460	132,523,460
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 WVDE under the Public School Support Plan (PSSP) for the proposed legislation is $132,523,460 for the 2026-27 year and each subsequent year. Certified enrollment data as of October 1, 2025, for school year 2025-26 was used to calculate the estimated costs associated with the enactment of this proposed legislation. Data utilized in the cost proposal was also based upon live special education enrollment data. The 2025-26 school year data revealed the total number of students with IEPs in rural counties as defined by this proposed legislation was 7,809 FTE. Since these students are currently included in net enrollment utilized in the calculation for PSSP, an additional 15,618.00 FTE students (7,809 * 2.0) were added to net enrollment to incorporate a “three times the number of students enrolled” as stated in the bill. This method prevented duplication of student enrollment. The estimated cost for the proposed legislation for the 2026-27 year is $132,523,460. This consists of an increase in Step 1 (Allowance for Professional Educators) of $62,076,888 due to an additional 1,134.91 funded positions, Step 2 (Allowance for Service Personnel) of $26,101,959 due to an additional 861.79 funded positions, Step 5 (Allowance for Student Support Personnel) of $4,297,254 due to an additional 78.09 funded positions, Step 3 (Allowance for Fixed Charges) of $7,564,545, Steps 6b & 6c (Allowance for Substitutes) of $2,311,903, Retirement of $7,037,431 and PEIA of $23,133,480. This cost estimate does not assume the passage of other legislation that may impact the PSSP, resulting in an increased costs for the pay increases provided in this bill.

Memorandum

As currently written, the legislation could be interpreted to provide a 3:1 enrollment increase factor to all students in counties with fewer than 2,200 students in net enrollment. Because every county has at least one student with an Individualized Education Program (IEP), the language could be read to apply the adjustment broadly to the entire county enrollment rather than specifically to students with IEPs. For purposes of this fiscal note, the WVDE has calculated the cost by applying the 3:1 enrollment increase factor only to students with IEPs in counties with fewer than 2,200 students. This interpretation significantly decreases the fiscal impact than if the intent is to apply the factor to total county enrollment. Clarification of legislative intent is recommended, as the fiscal impact to the State and county boards of education would vary substantially depending upon whether the 3:1 factor is intended to apply solely to students with IEPs or to all students in qualifying rural counties.

Person submitting Fiscal Note: Tina Payne
Email Address: tina.a.payne@k12.wv.us