FISCAL NOTE

Date Requested: March 07, 2017
Time Requested: 04:09 PM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2828 Introduced HB2809
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 provide an adjustment to the allocated state aid share to any county on account of, and in the amount of, payments or contributions in lieu of property tax distributed from the sheriff to the county board of education as a result of payment in lieu of tax agreements first entered into on or after July 1, 2016. The total estimated cost to the State under the Public School Support Program for the 2017-18 school year is $2,779,675.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 2,779,675 2,779,675
Personal Services 0 0 0
Current Expenses 0 2,779,675 2,779,675
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 total estimated cost to the State under the Public School Support Program (PSSP) for the 2017-18 school year is $2,779,675. The original funding request under the PSSP for the 2017-18 included a reduction in total state aid funding of $2,779,675 for payments in lieu of property taxes (PILOT). Per a survey of the county boards of education with PILOT agreements, none of the amounts included in the WV State Tax Department report dated December 8, 2016 (which was utilized for the 2017-18 PSSP funding request) were from agreements entered into after July 1, 2016. Under the proposed language, the adjustment to state aid funding shall only be made for agreements entered into after July 1, 2016, so the full $2,779,675 would be an additional cost to the State for the 2017-18 year. The total amount of payments in lieu of property taxes varies annually. However, for fiscal note purposes, it is assumed that the $2,779,675 will also be an additional cost for future years. That additional cost for future years would be offset by any new payment in lieu of taxes agreements entered into after July 1, 2016.



Memorandum






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