FISCAL NOTE
Date Requested: February 19, 2015
Time Requested: 01:12 PM |
| Agency: |
Education, Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2437 |
Amendment |
HB2478 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
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 revise certain aspects of public school finance and the school aid formula. The bill authorizes propane as an eligible fuel for the ten percent additional percentage allowance for school bus systems using alternative fuels. It extends the bus replacement cycle from twelve to fifteen years. It eliminates certain adjustments in the basic foundation program. The committee substitute also fully funds school systems at currently authorized levels under the Public School Support Plan, but allows them additional flexibility for the uses of the funds.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2015
Increase/Decrease
(use"-") |
2016
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-7,908,923 |
830,014 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
-7,908,923 |
830,014 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The estimated savings to the State under the Public School Support Program (PSSP) for the proposed legislation is $7,908,923 for fiscal year 2016. Thereafter, the estimated cost to the State under the PSSP for the proposed legislation is $830,014.
The fiscal year 2015-16 savings of $7,908,923 is made up of $8,738,937 in savings due to limiting the allowance for bus replacement, partially offset by an additional cost of $111,846 to fully fund service and professional personnel at the levels authorized under the PSSP and $718,168 in additional costs due to requiring certain adjustments to local share. The $111,846 is the estimated cost to fund at the statutory limits the four county boards that currently employ less professional educators or service personnel than authorized for funding. The estimated cost for this portion of the proposed legislation could vary by year based on the staffing level of the county boards.
For the subsequent fiscal years, the estimated cost of $830,014 to the State is made up of the additional cost of $111,846 to fully fund service and professional personnel at the levels authorized under PSSP and $718,168 in additional costs due to requiring certain adjustments to local share.
There is no additional cost associated with allowing county boards to utilize their bus replacement funding for other uses since the county superintendent must certify the serviceability of the bus fleet.
An estimated cost could not be provided for including propane as an alternative fuel, since no county boards of education currently use propane fuel in their bus fleet, therefore, no comparisons could be made regarding differences in fuel costs, mileage rates and engine maintenance costs due to the different fuels.
Memorandum
Person submitting Fiscal Note: Brenda Freed
Email Address: bfreed@k12.wv.us