FISCAL NOTE
Date Requested: March 17, 2025
Time Requested: 11:38 AM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3019 |
Enrolled |
SB506 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
N/A
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The total estimated cost to the state to provide regionalized enhanced pay to certified teachers in accordance with the proposed legislation is $169,114,310. Further, there would be an additional cost to be borne by county boards of education for employer related FICA charges on the lump sum payment in the amount of $13,918,108. Therefore, the total cost of the proposed legislation is $183,032,418.
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 |
183,032,418 |
183,032,418 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
183,032,418 |
183,032,418 |
| 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 to provide regionalized enhanced pay to certified teachers in accordance with the proposed legislation is $169,114,310. Further, there would be an additional cost to be borne by county boards of education for employer related FICA charges on the lump sum payment in the amount of $13,918,108. This amount was computed using the statewide average FICA percentage of 8.23%. Therefore, the total cost of the proposed legislation is $183,032,418.
The cost estimate was prepared in accordance with the calculation set forth in the proposed legislation. WVDE utilized the most recent data available on the National Association of Realtors (NAR) website in calculating the “market pay enhancement” as set forth in the proposed legislation. The NAR data provided a median home price for the state of West Virginia of $153,043 with median home prices ranging from $343,250 in Jefferson County to $53,900 in McDowell County.
When computing the “regional median home price” as defined in the proposed legislation, regional prices range from $447,696 for Jefferson County to $97,113 for McDowell County. Utilizing the Jefferson County regional median home price, a market pay enhancement multiplier is computed to be 193%: ($447,696-$153,043)/$153,043). When applying this multiplier to the average state funded salary for Jefferson County of $52,535.63, the pay enhancement is computed to be $101,394 per certified teacher employed by Jefferson County Schools. A total of 25 county boards of education qualify for a salary enhancement under the proposed legislation.
The WVDE utilized certified personnel data as of October 1, 2024, in computing the cost estimate. There was a total of 18,142 certified classroom teachers statewide on October 1, 2024. This count includes all teachers and other instructional personnel as defined in WVC 18A-1-1. Of the statewide total, 8,465 would receive a salary enhancement under the proposed legislation.
Memorandum
WVDE utilized the average state funded salary amounts for each county board of education in preparing the cost estimate; however, it is recommended that the bill sponsor clarify the term “average teacher salary” utilized in the proposed legislation. WVC 18A-4-1 defines both basic and advanced salaries. If it is the bill sponsors intent to utilize an amount different from these terms, it is recommended average teacher salary be defined in the proposed legislation.
Please note there is no limitation to the number of certified teachers in which a county would receive enhancement pay and “over formula” or state or federal grant funded employees would receive a state funded salary enhancement under the proposed legislation.
Under the proposed legislation, it appears county boards of education would be required to bear the cost of employer related FICA charges without additional state funding supporting this expense.
Person submitting Fiscal Note: Tina Payne
Email Address: tina.a.payne@k12.wv.us