FISCAL NOTE
Date Requested: March 05, 2018
Time Requested: 03:20 PM |
| Agency: |
Education & the Arts, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1638 |
Comm. Sub. Eng. |
HB4006 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
GENERAL REVENUE
Sources of Revenue:
General Fund 0294
Legislation creates:
Creates New Expense, Increases Existing Expenses, Creates New Program
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.
Based on projections of costs provided in the Department of Education Fiscal Note The following is a summary statement of the impact of HB 4006:
HB 4006 references Office of Secretary of Education and the Arts (OSEA) Center for Professional Development CPD)- Appropriation 11500 General Revenue - 0431/0294 with a current budget of $1,400,000 and moving this appropriation/program to DOE at an estimated cost of $750,000.
The current costs to administer these three (3) programs in OSEA/WVCPD is $350,000. The Fiscal Note provided by the WV Department of Education (DOE) states there would an estimated savings of $750,000 because the appropriation is currently $1,400,000. They project administering the three (3) programs for 50% less than the appropriation. However, in that OSEA/CPD's costs are only $350,000 to administer the same three (3)programs, this would be an increase of $350,000.
There is also a reduction seen in eliminating the Cabinet Secretary's position with a salary of $95,000. However, projected lost revenue of $1,800,000 leaves a net loss $1,545,000.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
350,000 |
350,000 |
| Personal Services |
0 |
-95,000 |
130,000 |
| Current Expenses |
0 |
0 |
0 |
| 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.
1) HB 4006 references Office of Secretary of Education and the Arts (OSEA) Center for Professional Development CPD)- Appropriation 11500 General Revenue 0431/0294 with a current budget of $1,400,000.
2) The Fiscal Note provided by the Department of Education (DOE), has an estimated cost of $750,000 for three (3) programs. This increase comes from OSEA/CPD's current costs to administer the same three (3) programs at $350,000. Thus an increase of $350,000.
3) The loss of ($95,000) is the Cabinet Secretary positions salary.
4) Full implementation cost(s) include $350,000 and $130,000 is based on current salary of WV Department of Education.
5) Estimated expenses demonstrate a net increase of $385,000.
NOTE: We continue to look at various scenarios of expenses. However, there is NO SAVINGS based on what was provided in HB 4006.
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.
HB 4006 is extremely vague overall. The language in the bill excludes numerous programs and other non-appropriated funds. There is no mention of staffing or administrative support for any of the Agencies. With no mention of centralized administrative support there would be additional cost(s)for each Agency to address this and determine what staffing or other administrative support is needed.
It will take up to four (4) months to transfer federal funds when an Agency moves under another Department.
There is no mention of control of inventory and assets and how these would be managed. In addition, these have been procured with both State and Federal Funds.
The cost(s) associated with moving/laying off FTE's is tedious and time consuming. Federal Laws required to follow when laying off; Cost(s) for continued health care - as the employer portion will continue to be paid for three (3) months; Unemployment Cost(s; Payouts of Accrued Leave; etc...
Moving the Agencies within OSEA's administration to other Department's or as "stand alones", removes the overall administrative support and consolidation.
Person submitting Fiscal Note: Sue G. Chapman, CFO
Email Address: sue.g.chapman@wv.gov