FISCAL NOTE
Date Requested: January 12, 2022
Time Requested: 05:07 PM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1376 |
Introduced |
SB195 |
|
|---|
| CBD Subject: |
|
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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.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The estimated cost to the State under the Public School Support Plan (PSSP) to allow children who have attained the age of 3 to be enrolled in early childhood education programs would vary based on participation.
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 |
23,172,560 |
57,887,834 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
23,172,560 |
57,887,834 |
| 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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
The estimated total cost to the State under the Public School Support Plan (PSSP) to allow children who have attained the age of 3 to be enrolled in an early childhood education program would vary based on participation rates. Based on the "Expansion of West Virginia Universal Pre-K To Include Three-Year-Olds: Analysis and Recommendations" study that was published by the National Institute for Early Education Research in December 2020, enrollment of 3-year-olds in other states and localities with universal access to Pre-K is typically 60-80 percent of 4-year-old enrollment. It is estimated that once the program is fully at scale in WV, 3-year-old enrollment will be at 75% of the 4-year-old enrollments. The estimate above of $57,887,834 at full implementation assumes an enrollment rate of 75% of 4-year-old Pre-K enrollment.
The 75% of 4-year-old Pre-K enrollment cost estimate under the PSSP includes the estimated increase for Step 1 for professional educator salaries ($29,972,969), Step 2 for service personnel salaries ($10,169,234), Step 3 for fixed charges ($3,497,258), Step 5 for student support personnel salaries ($2,044,257), Step 6 for substitute costs ($1,054,662), retirement ($3,298,981), and PEIA premiums ($7,850,473).
As mentioned, previously, enrollment of 3-year-olds in other states and localities with universal access to Pre-K is typically 60-80 percent of 4-year-old enrollment. Below is a summary of the estimated total costs to the State under the PSSP at various participation rates:
80% Participation: $61,768,691
70% Participation: $54,044,504
65% Participation: $50,225,976
60% Participation: $46,382,647
Based on the study conducted by the National Institute for Early Education Research, it is anticipated that full enrollment will not be reached for 5-10 years. In the first year of Pre-K for 4-year-olds, the enrollment was approximately 40% of the enrollment at year 10. Therefore, the above estimates for the first year of implementation in FY23 are based on 40% of the eventual projected 75% of 4-year-old Pre-K enrollment, which equates to an estimated $23,172,560. This includes the estimated increase for Step 1 for professional educator salaries ($11,989,188), Step 2 for service personnel salaries ($4,062,584), Step 3 for fixed charges ($1,400,020), Step 5 for student support personnel salaries ($836,287), Step 6 for substitute costs ($422,201), retirement ($1,320,646), and PEIA premiums ($3,141,634).
Note that county boards of education may incur additional costs for personnel employed in excess of funded, personnel employed in positions not eligible for state aid funding, personnel employed using other funding sources such as state or federal grants, and extended employment terms for professional personnel. Such county level costs are not included in the above estimates.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Since the PSSP funding is based on the student enrollment counts for the preceding year, funding for the 3-year olds who would first be permitted to enroll in public Pre-K during the 2022-23 school year would not be included in the final county-specific state aid calculations for the 2022-23 year. The WVDE would allocate additional funds appropriated for this purpose under the PSSP to the county boards of education based on the actual 3-year old enrollment counts collected on October 1, 2022. If county boards of education will receive funding for 3-year old students from this separate PSSP allocation, the 3-year olds should not also be counted in the allocation of the increased enrollment funding for the 2022-23 year so that the State is not funding the 3-year olds twice. Excluding them from the increased enrollment calculations for 2022-23 year would need a statutory change for that year only, as the funding for the additional 3-year olds as the program expands to full implementation could be handled through the Increased Enrollment allocation annually moving forward.
Person submitting Fiscal Note: Samuel E. Pauley
Email Address: sepauley@k12.wv.us