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 increase pay to teachers and service personnel by one percent a year for three years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2014
Increase/Decrease
(use"-") |
2015
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
18,982,137 |
56,946,411 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
15,638,752 |
46,916,253 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
3,343,385 |
10,030,158 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The total estimated cost for the proposed legislation at the end of the three year phase-in of the pay increases is $56,946,411. Of the total, $46,916,253 is the estimated cost to the state under the Public School Support Program (PSSP) and $10,030,158 is the estimated cost to the county boards of education for those employees paid with local or grant funds. The county cost includes the increased cost for counselors and nurses funded under PSSP since the Step 5 allowance is fixed at the 2012-13 allowance amount and no additional state aid funding will be received for those employees.
The estimated cost for the 2014-15 year is $18,982,137, with $15,638,781 as the state portion and $3,343,386 as the county board portion. This estimate includes the 1% salary increase as well as the increases in fixed charges, retirement, and current expenses. The estimated incremental cost for the 2015-16 school year is an additional $18,982,137 in the same breakdown between state and county costs. The total cost estimated cost for the 2015-16 school year would be the total of the two years - $37,964,274. In 2016-17, there would be an additional estimated incremental cost of $18,982,137 in the same breakdown between state and county costs. The total estimated cost for the 2016-17 year would be the total for the three years, or $56,946,411.
Please note that the incremental cost is estimated to be the same amount for each year since the raises are based on the salary schedule as of July 1, 2013 for all three years of increases.
Memorandum
Person submitting Fiscal Note: Brenda Freed
Email Address: bfreed@access.k12.wv.us