FISCAL NOTE
Date Requested: February 12, 2025
Time Requested: 09:22 PM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1937 |
Introduced |
SB37 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
N/A
Sources of Revenue:
Other Fund County Funded
Legislation creates:
Creates New Expense, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This legislation, in its current form, does not have any cost to the State under the Public School Support Plan (PSSP) to fund the employee unused personal leave bonus up to a maximum 10-days annually for all personnel as defined in the proposed legislation. Consequently, the total estimated cost would have to be borne by the county boards of education. The estimated cost to county boards under the proposed legislation would be a maximum of $37,968,432 with a median cost being $15,363,511.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
37,968,432 |
37,968,432 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
37,968,432 |
37,968,432 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The proposed legislation, in its current form, provides a bonus to all applicable personnel for unused personal leave up to a maximum 10-days annually. The estimated cost to the state under the proposed legislation would be a maximum of $37,968,432 with a median cost being $18,984,225. The cost estimate includes funding for fixed costs at 8.23% and retirement at the average contribution rate of 7.74%.
The cost estimate is based on SY25 certified personnel collections, and specifically those employees who entered the Teachers Retirement System (TRS) on or after July 1, 2015, which totaled 8,946.46 professional personnel positions and 8,510.71 service personnel positions. The maximum cost estimate assumes that all personnel will annually be eligible for a payout equal to 10 days. The median cost estimate assumes that all personnel will annually be eligible for a payout equal to 5-days. Daily payout rates equal to approximately $188 were utilized in the calculation. These amounts are equal to the average minimum daily substitute pay rate for professional educators based on a bachelor’s scale with 10-years’ experience. This amount will vary statewide based on current language included in the proposed legislation stating the bonus is to be equal to the average daily rate of a substitute by school district.
Memorandum
Under the current language included in the proposed legislation, there is no mention of a State funding source to provide the mandated bonus for unused personal leave. Consequently, the total estimated cost would have to be borne by the county boards of education. This cost would be paid for out of available county resources such as local excess levy funds (if applicable to a county and if the excess levy call includes a provision that would allow for this use of levy funds), the portion of regular levy funds not statutorily required to be put toward the county’s local share of the total basic program allowance, or any future savings realized by potentially reduced substitute costs as a result of the proposed legislation’s impact on absenteeism.
Person submitting Fiscal Note: Tina Payne
Email Address: tina.a.payne@k12.wv.us