FISCAL NOTE
FUND(S):
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2007
Increase/Decrease
(use"-") |
2008
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
19,913,063 |
34,368,507 |
34,368,507 |
| Personal Services |
0 |
0 |
0 |
| 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):
The purpose of this bill is to change the way local share is calculated beginning in 2013 to base the assessed valuations on calculated assessed valuations computed by the state tax commissioner and provided to the Department of Education in a report by December 1 of each year, with the computed assessments to be based on the assumption that all property that is included in the sales ratio analysis is being assessed at 60% of market value; to increase the limit that projected gross tax collections can increase over the previous year from one percent to two percent for determining the regular levy rate for school purposes; to require the State tax Commissioner to report annually the assessors’ progress in reaching the required 60% of market value; to remove the requirement that students less than 5 years of age without an IEP be excluded in calculating the county boards that are eligible for the provisions of the Growth County School Facilities Act; to create a refundable tax credit for real property taxes paid on a homestead in excess of 4% of gross household income, beginning with the 2008-09 fiscal year; to lower the local share percentage from 98% to 94% for the 2007-08 year and to lower it again to 90% for the 2008-09 year; to clarify legislative intent that whenever a provision in any special act to provide financial support to public libraries is contrary to the provisions of WVC §18-9A-11, the provisions of this code section shall control over the special act; and to create a provision for additional funding for counties with sustained enrollment increases that is 2% or more in the most recent three year average growth.
The estimated cost of this bill to the State for the 2007-08 year is $19,913,063, consisting of the following:
Additional state aid as a result of decreasing the local share percent to 94% - $16,455,444
Additional co. bds. becoming eligible under the Growth Counties Facilities Act - 2,685,993
Sustained increased enrollment 771,626
Total $19,913,063
The estimated additional cost of this bill to the State for the 2008-09 year is $14,455,444, consisting of the following:
Additional state aid as a result of decreasing the local share percent to 94% - $16,455,444
Additional co. bds. becoming eligible under the Growth Counties Facilities Act - 2,000,000
Reduction in cost as a result of increasing the growth limit from 1% to 2% -4,250,341
Total $14,455,444
FN – SB 541 – Continued from previous page.
The State Tax Department is computing the cost of the refundable tax credit beginning with the 2008-09 fiscal year.
Memorandum
Person submitting Fiscal Note: Joe Panetta
Email Address: jpanetta@access.k12.wv.us