FISCAL NOTE

Date Requested: February 10, 2017
Time Requested: 09:29 AM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1299 Introduced HB2019
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 purpose of this bill is to give all school personnel a six percent salary increase. The estimated cumulative costs to the State under the Public School Support Program (PSSP) for the proposed increase is $88,173,479. The estimated cumulative costs to the County Boards of Education for the proposed increase is $2,485,683. The total estimated combined cumulative costs to the State and County Boards of Education for six percent increase in the basic teacher salary schedule and the basic service personnel salary schedule for the proposed increases is $90,659,162.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 90,659,162 90,659,162
Personal Services 0 0 0
Current Expenses 0 88,173,479 88,173,479
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 2,485,683 2,485,683
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


The estimated cost to the State under the Public School Support Program (PSSP) for a six percent increase in the basic teacher salary schedule and the basic service personnel salary schedule includes the estimated increases in Step 1 for professional salaries, Step 2 for service personnel salaries, Step 3 for fixed charges, and Step 6 for operations and substitute costs, and retirement. The total estimated cost for a six percent increase for the 2017-18 year is $88,173,479. The portion attributable to professional educators is $65,844,711 and the portion attributable to service personnel is $22,328,768. The county boards of education would also incur additional costs for the salary increases for the counselors and nurses included in Step 5 of the PSSP since the allowance is fixed at the 2012-13 amount. The estimated cost to the County Boards of Education for the 2017-18 year for a six percent increase for counselors and nurses is $2,485,683. The total estimated combined cumulative costs to the State and County Boards of Education for a six percent increase in the basic teacher salary schedule and the basic service personnel salary schedule for the 2017-18 year is $90,659,162. Note that the estimated cost to the county boards of education does not include the 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, or the cost of extended employment terms for professional personnel.



Memorandum


The proposed language of the bill includes "retired teachers" in the six percent salary increase. It is unclear if this language is intended to increase the retirement benefits of all retired teachers who are not actively working as a substitute teacher in a county board of education. If that is the intent, the cost of increasing the retirement benefits is not included in this cost estimate and would need to be provided by the WV Consolidated Public Retirement Board.



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