Date Requested: February 06, 2015
Time Requested: 02:50 PM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
2735 Introduced SB431
CBD Subject: Salaries


FUND(S):



Sources of Revenue:

Other Fund N/A

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 provide for graduated increases to teachers salaries over the next five years such that after five years teachers receive a salary that is $10,000 greater than their current salary. The proposed increases are as follows:
    
    For the 2015-16 year - $1,000 increase;
    For the 2016-17 year - $1,500 increase;
    For the 2017-18 year - $2,500 increase;
    For the 2018-19 year - $2,500 increase;
    For the 2019-20 year - $2,500 increase.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 33,018,418 329,416,841
Personal Services 0 0 0
Current Expenses 0 27,981,317 279,045,832
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 5,037,101 50,371,009
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    The estimated cost to the State under the Public School Support Program (PSSP) for the 2015-16 year for a $1,000 across the board increase in the basic teacher salary schedule is $27,981,317. This includes the estimated increases in Step 1 for professional salaries, Step 3 for fixed charges, Step 6 for operations and substitute costs, and retirement. The additional incremental estimated cost to the State for a $1,500 per year across the board increase in the basic teacher salary schedule for year 2016-17 is $41,895,176 and the estimated annual incremental cost for a $2,500 per year across the board increase in the basic teacher salary schedule for years 2017-18, 2018-19 and 2019-20 is $69,723,113 per year. These estimated costs include the estimated increases in Steps 1, 3, 6 and retirement. The total estimated cumulative cost to the State for all five years of proposed increases is $279,045,832.
    
    The county boards of education would also incur additional costs for the salary increases for the counselors and nurses included in Step 5 of PSSP since the allowance is fixed at the 2012-13 amount, for all professional personnel over formula, and for all other professional personnel employed from other funding sources. The estimated cost to the county boards of education for the 2015-16 year for a $1,000 across the board increase in the basic teacher salary schedule is $5,037,101. This includes the estimated increases in professional salaries, fixed charges and retirement. The additional incremental estimated cost to the county boards of education for a $1,500 per year across the board increase in the basic teacher salary schedule for year 2016-17 is $7,555,652 and the estimated annual incremental cost for a $2,500 per year across the board increase in the basic teacher salary schedule for years 2017-18, 2018-19 and 2019-20 is $12,592,752 per year. These estimated costs include the estimated increases in salaries, fixed charges and retirement. The total estimated cumulative cost to the county boards of education for all five years of proposed increases is $50,371,009. Please note that the estimated cost to the county boards of education does not include the additional cost for extended contract terms.
    
    The total combined estimated cost for both the State and the county boards of education for the five year teacher salary increase contained in the proposed legislation is $329,416,841.



Memorandum


    



    Person submitting Fiscal Note: Brenda Freed
    Email Address: bfreed@k12.wv.us