FISCAL NOTE

Date Requested: February 15, 2022
Time Requested: 02:58 PM
Agency: Education, WV State Board of
CBD Number: Version: Bill Number: Resolution Number:
2857 Introduced HB2753
CBD Subject: Actions, Suits and Liens


FUND(S):

0390

Sources of Revenue:

General Fund N/A

Legislation creates:

Increases Existing Expenses



Fiscal Note Summary


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


The estimated annual cost to the state for hiring experts to teach required community education programs in each of the 55 counties is $3,187,916. While the proposed legislation is silent as to the funding source for these new activities, this estimate assumes that the West Virginia Department of Education (WVDE) would annually request, and the Legislature would approve, an additional appropriation within Fund 0390 to pay for these additional courses within the county boards of education. However, any portion of the additional appropriation request that would not be approved by the Legislature would result in those costs being borne by the counties.



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 3,187,916 3,187,916
Personal Services 0 0 0
Current Expenses 0 3,187,916 3,187,916
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):


Based upon our experience with current community education programs operating within the State, we estimate that the additional courses to be offered under the proposed legislation will be taught using extra-curricular employment contracts outside of the normal school day. Such extra-curricular employment contracts are typically paid on an hourly basis at an approximate rate of $30 per hour. We anticipate that these courses would be taught by current employees of the county board. Therefore, the additional compensation paid to such teachers would be subject to all normal employment fixed costs, specifically Social Security (at 6.20%), Medicare (at 1.45%), retirement (at a State average of 7.82%), and Workers’ Compensation (at a State average of 0.64%). Please note that if a county fills any of these additional extra-curricular positions with employees who are not already employed on a regular-basis with the county, the wages paid to those employees would not be subject to retirement contributions. The estimated total cost to the state to implement the proposed legislation is $3,187,916 and is broken down as followed: Salary costs of $2,745,600 annually for hiring experts to teach required community education programs in 55 counties. - 8 experts per county at $30 per hour = $960 per county to offer 8 four-hour classes once a week - Annual cost per county = $49,920 - Annual TOTAL cost for 55 counties = $2,745,600 Fixed costs at a statewide average rate of 8.29% - $227,610 Retirement costs at a statewide average rate of 7.82% - $214,706



Memorandum


The estimated cost is based on a county board of education providing one of each of the community education classes for the 8 areas outlined in 18-2D-2. Therefore, this estimate is deemed to be a minimum cost for implementation of this proposed legislation. If county boards of education have to add additional areas/classes as a result of increased community participation, the fiscal impact would be greater. While the proposed legislation is silent as to the funding source for these new activities, this estimate assumes that the West Virginia Department of Education (WVDE) would annually request, and the Legislature would approve, an additional appropriation within Fund 0390 to pay for these additional courses within the county boards of education. However, any portion of the additional appropriation request that would not be approved by the Legislature would result in those costs being borne by the counties.



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