FISCAL NOTE
Date Requested: February 18, 2026
Time Requested: 03:41 PM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4042 |
Introduced |
HB5453 |
|
|---|
| 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.
This proposed legislation establishes a revised method of school aid funding; clarifies the base fund and establishes a supplemental fund; sets forth categories within the supplemental fund; and provides for reporting and oversight. In its current form, this legislation has an estimated cumulative cost to the State under the Public School Support Program (PSSP) of $214,792,461.
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 |
214,792,461 |
214,792,461 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
214,792,461 |
214,792,461 |
| 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 estimated cumulative cost to the State under the Public School Support Program (PSSP) for the proposed legislation is $214,792,461. The cumulative cost estimate is broken down as follows:
The first portion of the cost estimate looks at two portions of the proposed legislation in aggregate to determine the impact. The proposed legislation sets a net enrollment “floor” of 1200 students in lieu of the 1400 adjustment that is currently set forth in W. Va. Code, as well as a base per pupil amount in which a county board of education will receive funding. The aggregate cost to the state under this portion of the proposed legislation is $186,102,873. The estimated impact varies across the 55 county boards of education with the largest increase being $26,153,855 for Marshall County who currently does not receive state aid funding. Eleven county boards of education will see a decrease in funding under the proposed legislation; however, this impact is addressed in a hold harmless provision denoted below. The net enrollment established under the proposed legislation equates to 237,837.08 students based upon the 1200 floor, adult students, and public charter school student adjustments.
As further addressed in the proposed legislation, additional funding is to be appropriated to county boards of education based upon special education enrollment. An amount of $3,250 and $6,500 is to be provided for Level II and Level III special education students, respectively. This provision is estimated to provide an additional appropriation in the amount of $16,354,000. The estimate was based on Oct 1, 2025, enrollment counts of 3,590 Level II and 721 Level III special education students.
The proposed legislation includes a hold harmless provision to ensure a county board of education does not receive less funding than they would have received under the current Public School Support Plan Methodology for the initial three fiscal years under the proposed legislation. This provision creates an estimated $12,335,588 net increase impact on the total cost to the state under the proposed legislation.
The West Virginia Consolidated Public Retirement Board (CPRB) should also be consulted to obtain the additional cost to the State due to the impact of the proposed salary increases on the unfunded retirement liability for the Teachers' Retirement System (TRS).
This cost estimate does not assume the passage of other legislation. If other changes are made to the PSSP, it could result in an increased or decreased cost.
Memorandum
Based on previous conversations with the bill’s sponsor, the main purpose of the proposed legislation is to repeal the current step methodology of computing the Public School Support Plan and replace the methodology with a base per pupil calculation methodology. It is the opinion of the WVDE that the current methodology set forth in W. Va. Code 18-9A et seq. be repealed within the proposed legislation in order to ensure the previous methodology is no longer in effect. Absent of repeal, a challenge could occur insinuating both funding methodologies are to be enforced.
Under the current Public School Support Plan computation methodology, a county board of education’s local share reduces the step methodology to allocate a basic allowance of funding. The proposed legislation utilizes statewide averages which could create inequities among county boards of education.
There is a supplemental fund established under the proposed legislation in which the fund is referenced on two different occasions: one with a defined computation as to how funding is to be directed to the fund and another in which it appears the legislature would have discretion on additional funding increases. The WVDE has computed estimated funding to the supplemental fund based on the established criteria only and has not attempted to assume any additional funding that may be appropriated to the fund.
The additional funds that would require appropriation from the legislature appear to be competitive in nature and awarded to WV school districts on a competitive basis.
WV public charter schools are funded in accordance with W. Va. Code 18-5G et. seq. and WVBE Policy 3300 based on a “step 8” amount per pupil. However, now that the step methodology is removed under the proposed legislation, it is advised that the proposed legislation be amended to dictate how public charter schools will be funded. The current cost estimate computes the funding computed for public charter school students to be equivalent to that of county boards of education.
W. Va. Code 18-9A-25 establishes the methodology in which the Hope Scholarship shall be funded, which is based on a state aid per pupil amount. It is advised that the proposed legislation address whether the Hope Scholarship will now be based on the newly established $6500 benchmark or some other figure. Due to the proposal of a House Finance Originating Bill that is currently going through the legislative process, this comment may ultimately be addressed elsewhere.
It should be noted that a county board of education’s current net enrollment includes public charter school students. It is advised that a revision occur to this net enrollment code language to align with the “1200 floor” established under the proposed legislation in conjunction with the previous advisement that public charter schools be addressed separately under the proposed legislation. This may impact the cost estimate.
Person submitting Fiscal Note: Tina Payne
Email Address: tina.a.payne@k12.wv.us