FISCAL NOTE

Date Requested: February 11, 2016
Time Requested: 09:34 AM
Agency: State Board of Education
CBD Number: Version: Bill Number: Resolution Number:
2063 Comm. Sub. SB 321
CBD Subject: Education (K12)


FUND(S):



Sources of Revenue:

Other Fund N/A

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


The estimated cost to the State in FY2017 for the proposed legislation is $1,778,649.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 1,778,649 2,722,514
Personal Services 0 0 0
Current Expenses 0 1,778,649 2,722,514
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 proposed legislation captures the decrease in the state aid funding due to the decrease in net enrollment from the preceding school year and dedicates those funds to the allowance for exceptional students with high-cost/high-acuity special needs, limited to the amount that the combined state and federal funding for that purpose was insufficient to reimburse all eligible county boards fully for those costs in the most recent year available. The overall reduction in state aid funding due to the decrease in net enrollment is calculated to be $11,261,098 for FY17. This number was calculated by multiplying the decline in net enrollment of 2,752.82 FTE (between the 2014-15 school year and the 2015-16 school year) by the average net state aid per pupil for the 2015-16 school year of $4,090.75 per pupil. However, the full amount of the decline in state aid funding due to the decrease in enrollment is not needed for the FY17 high cost/high acuity funding. The amount of funding needed for FY17 of $1,778,649 is based on the 2015 high cost/high acuity grant funding cycle, which is the most recent year available. For the 2015 grants to county boards of education, WVDE received applications with costs for eligible students totaling $4,100,952 statewide. The amount of federal funding available was $822,303 and the amount of state appropriations available was $1,500,000 for a total of $2,322,303 of available funding. An additional $1,778,649 ($4,100,952 less $2,322,303) would have been needed to fully fund the requests from the county boards of education in the 2015 year. Note that the amount of funding needed for high cost/high acuity students varies each year based on the student population, number of county boards of education submitting grant applications, and average per pupil expenditure for regular education students. Therefore, WVDE is unable to predict the maximum amount of funding that would be needed for this purpose in any given year. However, since the inception of the state funding for high acuity during FY2009, the largest amount of unfunded grant requests received has been $2,722,514. This amount was utilized for the cost upon full implementation to capture the potential that additional funds may be necessary in future years beyond the cost of $1,778,649 for FY17. This fiscal note assumes that the full $1,500,000 previously appropriated for this purpose will again be appropriated during FY17.



Memorandum






    Person submitting Fiscal Note: Brenda Freed
    Email Address: bfreed@k12.wv.us