Date Requested:January 24, 2011
Time Requested:02:13 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2011R1807 Introduced SB36
CBD Subject: UNIVERSITIES TO SPONSOR COMMUNITY SCHOOLS
FUND(S)
0586
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.

    SB 36, if approved, would provide opportunities for state universities and colleges to establish and maintain schools that operate in cooperation with the existing county school structure. Prior to the year 2013, a community school may only be established by West Virginia University or Marshall University, or both. Tuition may not be charged to community school students. A community school will receive from the county board of education at least the budgeted total expenditures per average daily membership of the prior school year. A community school may request additional funds to address the needs of special education and exceptional students. Temporary financial assistance will be provided by the state board to a county board of education to offset the additional costs associated with the enrollment of students in a community school. For a student enrolled in nonpublic schools in the previous year, the state board will pay a county board of education the amount of the county’s basic education subsidy for the current school year divided by the county’s average daily membership for the prior school year. The bill creates a grant program to provide temporary transitional funding to a county board of education. The estimated additional funding costs are $1,352,000 in fiscal year 2012 and $100,000 in fiscal year 2013.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 1,352,000 1,352,000
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
3. Explanation of above estimates (including long-range effect):
    The average cost per pupil for Fiscal Year 2009 was $9,675. According to an October 2010 survey conducted by Bloomberg, inflation rates are projected to be 1.2 percent in 2011 and 1.5 percent in 2012. The inflation rate for 2010 was 1.5 percent. It is estimated that the budgeted cost per pupil for FY 2012 is $10,087 given a 4.3 percent compounded increase in the consumer price index over three years. The estimated enrollment for the first year is 125. It is anticipated that enrollment would grow by about 125 students over the following three years. Private schools enroll about 4 percent of the primary and secondary school population in West Virginia.
    
    If a community school was created and enrolled 125 students in Fiscal Year 2013, the budget amount paid by the county and state would be about $1,261,000 (median enrollment multiplied by the average cost per pupil). No significant increase in ongoing costs would result from the transfer and instruction of students from a county school system. It is estimated that about 5 and 10 students would transfer from private schools in the first and second years respectively. The cost associated with these students is about $50,000 and $101,000 for the first and second years respectively.
    
    Transitional funding would be necessary during fiscal year 2012 to develop a school’s curriculum and operations plan. It is projected that this process would be completed in about one year. A Principal and a Curriculum Director as well as support staff would need to be hired. These individuals would need to order supplies and create a website. It is estimated that the personnel and operating expense costs would about $383,000 and $293,000 respectively. The West Virginia Department of Education would require additional state funding for these costs.
    It is anticipated that Marshall University and West Virginia University would each operate one school as a pilot project. The total transitional funding costs for the two schools would be approximately $1,352,000. The costs associated with students transferring from private schools would cost of about $100,000 and $202,000 each year for the two schools. It is likely that other schools would be established


Memorandum
Person submitting Fiscal Note:
Ed Magee
Email Address:
emagee@hepc.wvnet.edu