FISCAL NOTE
Date Requested: January 25, 2024
Time Requested: 03:24 PM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1394 |
Amendment |
HB4372 |
|
|---|
| 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 legislation, as amended by the House Education Committee, will have a fiscal impact on the WVDE in an estimated amount of $1,973,400 annually beginning with the 2024-25 school year. These funds will be allocated under the Public School Support Plan and will fluctuate annually depending on the number of teachers employed and their years of experience.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
1,973,400 |
1,973,400 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
1,973,400 |
1,973,400 |
| 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 proposed legislation, as amended by the House Education Committee, will have a fiscal impact on the WVDE. Specifically, the total estimated cost to the State under the Public School Support Plan (PSSP) is approximately $1,973,400 because, under the committee amendment, the proposed legislation eliminates the limited number of years of service on interval teacher pay raises which is currently set at 35 years' experience. Based on data from the 2023-24 Certified List of Personnel, it is estimated that there are 702 state aid eligible professional employees with 36+ years of experience. An increase in the annual salary based on the employee’s years of experience is $588 and compounds for each year of service beyond the current limit. The increase in salaries would increase funding under Steps 1 & 5 – Allowance for Professional and Student Support Personnel respectively by $1,665,598, Step 3 - Allowance for Fixed Charges by $137,245, Step 6b - Allowance for Substitutes by $41,640, and Retirement by $128,917 for a total estimated cost to the State of $1,973,400. Please note that county boards of education will incur additional costs for personnel employed in excess of funded, personnel employed in positions not eligible for state aid funding, personnel employed using other funding sources such as state or federal grants, and extended employment terms for professional personnel; however, WVDE lacks the data necessary to calculate the cost to county boards, so those costs are not included in the above estimates. The Legislature may want to consult with the West Virginia Consolidated Public Retirement Board (CPRB) for impact on the unfunded retirement liability for the Teachers' Retirement System (TRS). Additionally, this estimate does not assume the passage of any other legislation that may have impact on the PSSP. If other legislation is enacted, it could result in additional costs for this legislation. This cost estimate does not assume the passage of other legislation.
Memorandum
N/A
Person submitting Fiscal Note: Uriah Cummings
Email Address: Uriah.Cummings@k12.wv.us