FISCAL NOTE

Date Requested: January 11, 2024
Time Requested: 03:38 PM

1548	Introduced	HB4182
Agency:	Education, WV Department of
CBD Number:	Version:	Bill Number:	Resolution Number:
CBD Subject:	Education (K12)

FUND(S):

0317

Sources of Revenue:

General Fund

Legislation creates:

Increases Existing Expenses

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

This proposed legislation has fiscal impact on the WVDE at an estimated amount of $2,947,683 under the Public School Support Plan (PSSP) for the 2024-25 school year and each subsequent year.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2024 Increase/Decrease (use"-")	2025 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	2,947,683	2,947,683
Personal Services	0	0	0
Current Expenses	0	2,947,683	2,947,683
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 WVDE under the Public School Support Plan (PSSP) for the this proposed legislation is $2,947,683 for the 2024-25 year and each subsequent year. Certified enrollment data as of October 1, 2023 for school year 2023-24 was used to calculate the estimated costs associated with the enactment of this proposed legislation. The 2023-24 school year data revealed the total number of students for year-round and alternative placement schools was 799.685 FTE. Since these students are currently included in net enrollment utilized in the calculation for PSSP, an additional 399.84 FTE students (799.685 FTE * 0.5) were added to net enrollment to incorporate a “one and one-half times the number of students enrolled” as stated in the bill. This method prevented duplication of student enrollment. The estimated cost for the proposed legislation for the 2024-25 year is $2,947,683. This consists of an increase in Step 1 (Allowance for Professional Educators) of $1,471,570 due to an additional 28.93 funded positions, Step 2 (Allowance for Service Personnel) of $583,954 due to an additional 20.33 funded positions, Step 5 (Allowance for Student Support Personnel) of $101,982 due to an additional 1.99 funded positions, Step 3 (Allowance for Fixed Charges) of $177,779, Steps 6b & 6c (Allowance for Substitutes) of $53,526, Retirement of $163,619 and PEIA of $431,749. There is also an increase in Step 6a (Allowance for Current Expense) of $527 due to a redistribution of the funding among counties derived from the change in enrollment proposed in this legislation. There is a remaining net decrease of $37,023 that is attributable to the local share change which is a result of the reallocation of funds among the counties under the statutorily prescribed calculations in certain steps, which impacted the local share cap on the one county board of education that receives zero state aid funding. The gross impact is offset by an increase of $37,022 to step 7a,b,and c due to the recapture of the growth in local share which impacts these steps.

Memorandum

Enrollment data calculated at “the annual date of maximum enrollment for that school in a school year” as stated in this proposed legislation is not available. Year-round school and alternative placement school enrollment are currently included in the calculation for the state aid funding formula as of the October 1st certification date. WVDE collects student enrollment data on the October 1st date every year to prevent any duplication of enrollment, i.e., to ensure that each student is included only one time in one location for enrollment counts. Enrollment data is reviewed and certified by local county leaders to ensure completeness and accuracy. Also, the October 1st date is consistent with Federal guidelines. The estimated cost for the proposed legislation would vary as a result of student enrollment fluctuation.

Person submitting Fiscal Note: Uriah Cummings
Email Address: Uriah.Cummings@k12.wv.us