Date Requested:March 22, 2013
Time Requested:12:09 PM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
2013R2992 Introduced HB3050
CBD Subject: SALARY INCREASES FOR TEACHERS
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 provide a salary increase for a teacher based on residential housing costs.
    
    Every eligible employee with three or more years of service will receive an annual salary increase equal to two percent of the employee's regular salary, if the employee resides in a county where residential home prices are at least ten percent above the statewide average for residential homes.
    
    Every eligible employee with three or more years of service will receive an annual salary increase equal to four percent of the employee's regular salary, if the employee resides in a county where residential home prices are at least twenty percent above the statewide average for residential homes.
    
    Every eligible employee with three or more years of service will receive an annual salary increase equal to six percent of the employee's regular salary, if the employee resides in a county where residential home prices are at least thirty percent above the statewide average for residential homes.
    
    If an eligible employee with three or more years of service resides in a county where residential home prices are more than thirty percent above the statewide average for residential homes, the employee will receive an annual salary increase of two percent of the employee's regular salary for every ten percent that residential home prices in that employee's county exceed the statewide average for residential homes.

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 27,477,068 59,735,861
Personal Services 0 0 0
Current Expenses 0 26,477,315 57,725,346
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 999,753 2,010,514
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    The estimated total cost for the proposed legislation is $27,477,068, with $26,477,315 being an increased cost to the State through the Public School Support Program, and $999,753 in increased costs for the county boards of education. A compounding effect would result in each year thereafter, with a total of $59,735,861 being needed in year 2, with $57,725,346 being an increased cost to the State through the Public School Support Program, and $2,010,514 in increased costs to the county boards of education.
    
    The above estimates were calculated based on West Virginia housing costs available through the US Census Bureau. The most recent data available was for the period of 2007-2011. Unless a different data source can be identified, there will be difficulty in accurately measuring current housing costs each year in order to calculate the proposed increase due to the delay in data availability.
    
    Based on the housing data utilized, the counties that would benefit from the proposed legislation are as follows:
    
    Berkeley (16% annual pay increase)
    Grant (2% annual pay increase)
    Hampshire (8% annual pay increase)
    Hardy (6% annual pay increase)
    Jefferson (28% annual pay increase)
    Mineral (2% annual pay increase)
    Monongalia (12% annual pay increase)
    Morgan (14% annual pay increase)
    Putnam (8% annual pay increase)


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