Date Requested:January 09, 2014
Time Requested:04:44 PM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
2014R1357 Introduced SB93
CBD Subject: PUBLIC SCHOOL SUPPORT COMPUTATION OF LOCAL SHARE
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.

    The purpose of this bill is to repeal certain sections of the Code that changed the way local share is to be computed, beginning with the 2014-15 year, so that it can continue to be computed using the methodology that has been used for the past several years. The proposed revisions remove the provisions of Code that require the use of assumed assessed values for the purpose of computation and require an increase in the local share amount for the county boards where the property assessments are not at least fifty four percent of market value as indicated by the latest sales ratio analysis. The bill also removes certain provisions relating to obligations created by special acts of the Legislature for certain county boards that are required to dedicate a portion of their regular levy tax collections to the support of public libraries, but instead encourages all county boards to voluntarily support the public libraries within their counties.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 -3,231,616 -3,231,616
Personal Services 0 0 0
Current Expenses 0 -3,231,616 -3,231,616
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 estimated net cost savings to the State through the Public School Support Program (PSSP) for this proposed legislation for the 2014-15 year ,and each year thereafter, is $ 3,231,616.
    
    This estimate is based on the following assumptions: the average difference of $9,936,870 in the local share computed using the estimated property assessed valuations provided by the State Tax Commissioner in December each year and the assessed valuations certified by the county assessors in March for the past five years will continue for the 2014-15 school year; and the declaration that the interpretative rule issued by the Tax Commissioner which allows that office to update the December estimate of assessed valuations is invalid, since there is no statutory basis for updating the original estimates.
    
    However, of the $9,936,870 average increase in local share, 30% is dedicated to Step 7, therefore the average increase in local share is only $6,955,809.
    
    The total increase in local share by using a 98% computation rate rather than a 90% rate for the following three county boards as a result of those counties' sales valuation composite ratios not being at least at 54% of appraised values is $5,320,276: Lincoln ($578,537), Monongalia ($3,896,447) and Wyoming ($845,292). This increase in local share is partially offset, however, by the requirement that 30% of the increase in local share be dedicated to Step 7 of the Public School Support Program. The elimination of this penalty would decrease the effect on state aid by $1,596,083, thus making the difference only $3,724,193.
    
    The estimated net savings of $3,231,616 was computed by subtracting the $3,724,193 from the average difference of $6,955,809.


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