FISCAL NOTE
FUND(S):
Sources of Revenue:
General Fund
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 revise the Public School Support Program, as follows:
1. Base computations for steps 1 and 2 on net enrollment limits only; eliminate adjusted enrollment limits.
2. Divide districts into 4 groups based on student density per square mile as follows: sparse – less than 5 students / sq. mile; low – 5 to less than 10 students /sq. mile; medium – 10 to less than 20 students /sq. mile; and high – 20 or more students / sq. mile; set the net enrollment limits for each group as follows: sparse – 72.50 /1,000 students for PE; 66.00 /1,000 students for PI; and 45.68 /1,000 students for SP; low – 72.35 /1,000 students for PE; 65.95 /1,000 students for PI; and 45.10 /1,000 students for SP; medium – 72.20 /1,000 students for PE; 65.85 /1,000 students for PI; and 44.53 /1,000 students for SP; and high 72.05 /1,000 students for PE; 65.75 /1,000 students for PI; and 43.97 /1,000 for SP and base allowances for steps 1 and 2 on these four groups.
3. Establish base net enrollment of 1,400 and for the districts with enrollments of less than 1,400 students, include a weighted number of students in net enrollment based on student population density factors.
4. Identify school counselors, school nurses, and technology systems specialist as professional student support personnel and fund in Step 5 at the following ratios per net enrollment in grades PK – 12; school counselors – 1/350 students; school nurses – 1/1,500 students; technology systems specialists 1 /2,500 students and adjust the net enrollments in Step 1 accordingly.
5. Use the same four groups discussed above to base the allowance for operations, maintenance and contracted services for student transportation (Step 4), using 95%, 92.5%, 90%, and 87.5% of actual expenditures, for sparse, low, medium and high student density groups, respectively, with an additional 10% allowance for using alternative fuels and for transporting students to and from multi-county vocational centers, and exclude allowance for additional buses from 1/3 allowance limit.
6. Base allowance for operation and maintenance of facilities (Step 6a) at 90% of state total expenditures and allocate allowance to each county on state average expenditures per student per square foot basis.
7. Fund advanced placement programs for all advanced placement students at 1.0% of average per pupil state aid for previous year.
8. Fund alternative education @$24 per net enrollment student.
9. Eliminate the allowances for 34/1,000 waivers, low, student enrollment, sparse population allocation and the temporary allowance for additional school nurses.
10. Eliminate the current allowance for Step 5.
11. Phase-in the allowance differentials between the current formula and the proposed formula over a three-year period by performing the state aid calculations under both methods during the three years and providing one-third of the allowance increase between the two methods the first year, two-thirds of the increase the second year, and the full increase the third year.
12. Hold harmless any county district that is projected to receive less state aid funding as a result of implementing the proposed revisions during the phase-in by providing the same level of funding that the district would have received under the current provisions.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
49,849,944 |
49,849,944 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| 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 of the proposal is $49,849,944 computed as follows:
Step 1 - Professional Personnel Allowance (236.33 less PE)
$ (9,623,519)
Step 2 - Service Personnel Allowance (88.81 additional SP) 1,978,221
Step 5 - Professional student support pers allowance (1,052.07 add’l pers) 42,870,894
Step 4 - Transportation allowance 1,631,348 1,631,348
Step 6a- Other current expenses 6,487,308
Step 7c – Allowance for advanced placement 1,064,379
Allowance for alternative education programs 4,754,852
Step 3 - Resultant effect on allowance for fixed charges 3,170,305
Step 6b & c – Resultant effect on allowance for substitutes 880,638
Step 6d – Resultant effect on allowance for faculty senates 163,148
Total gross estimated increase in allowance prior to elimination of following: 53,377,574
Elimination of allowance for 34/1,000 waivers (400,000)
Elimination of allowance for low student enrollment (1,000,000)
Elimination of add’l allowance for low student enrollment in Gov’s budget (850,000)
Elimination of sparse population allocation (525,000)
Elimination of current Step 5 allowance (3,082,695)
Elimination of allowance for additional nurses (1,384,522)
Total net estimated increase in allowances after elimination of above 46,135,357
Increase in PEIA as a result of additional personnel ($510.67/mo.) 5,543,112
Increase in retirement as a result of additional personnel (15%) 5,283,839
Estimated cost to hold all county boards harmless over 3 yrs ($129,212/yr) 387,636
Elimination of cost to increase net enrollment limits during 3 year phase-in (7,500,000)
Total estimated increase in cost to the State $49,849,944
Net estimated cost of proposal after recapture of remaining eight years of net enrollment increases
$49,849,944 – ($2,500,000 x 8 = $15,000,000) = $34,849,944.
Memorandum
Person submitting Fiscal Note: Pam Bird for Joe Panetta
Email Address: jpanetta@access.k12.wv.us