Date Requested:February 15, 2013
Time Requested:11:20 AM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
2013R1098 Introduced HB2378
CBD Subject: HIRING BY SCHOOL BOARDS
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 permit a county superintendent, subject to the approval of the county board, to hire three service personnel workers from the substitute list, based on seniority, on a full-time basis as itinerants to meet the day-to-day need for substitutes in the service personnel area. The bill provides that the itinerants do not count against the county in the calculation of the school aid formula. The bill also provides a provision should the hiring of the three full-time substitutes prove to be insufficient to meet the need for substitute service personnel on any given day.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 765,023 765,023
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 765,023 765,023
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    There would no cost incurred by the State under the Public School Support Program (PSSP) because the bill does not add positions to be funded through the school aid formula.
    
    In addition, there would be no additional required costs incurred by the county boards unless they elect to employ the substitute service personnel on a full-time basis, since the bill permits, but does not require, such employment. However, for the county boards that elect to do so, they would incur salary plus employee benefit costs for each full-time substitute hired. The estimated cost for a county for each full-time substitute service personnel employed would be $26,813, based on an average salary, and $11,610 in employee benefit costs for a total of $38,423. The employee benefits costs include the employer's share of PEIA premium and retirement benefit costs, which amount to an average of $9,273 per employee.
    
    Although the total cost would be offset somewhat by the cost of employing substitute service personnel, day to day substitutes would normally not be entitled to PEIA and retirement benefits, whereas a full-time employee employed for 200 days would be. This would amount to a cost differential of $9,273 per employee.
    
    There is no way to estimate the number of county boards that would exercise this option, but based on the assumption that one-half of the 55 county boards would employee the maximum of three such employees, the total cost statewide would be $765,023, which would be a cost that would have to be borne by the county boards.
    
    The cost was estimated as follows: 55 X 1/2 X $9,273 = $765,023.


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