FISCAL NOTE
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
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 |
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