Date Requested: February 06, 2015
Time Requested: 02:53 PM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
2738 Introduced SB432
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 increase pay to school service personnel on a graduated basis over the next five years, so that the total pay increase after five years is $250 monthly. The proposed annual increases are as follows:
    
    For the 2015-16 year - $500 increase;
    For the 2016-17 year - $500 increase;
    For the 2017-18 year - $500 increase;
    For the 2018-19 year - $500 increase;
    For the 2019-20 year - $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 9,899,891 49,499,455
Personal Services 0 0 0
Current Expenses 0 8,528,132 42,640,660
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 1,371,759 6,858,795
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 $50 monthly across the board increase in the basic service personnel salary schedule is $8,528,132. This includes the estimated increases in Step 2 for service personnel salaries, Step 3 for fixed charges, Step 6 for operations and substitute costs, and retirement. The incremental annual estimated cost to the State for a $50 per month ($500 per year) across the board increase in the basic service personnel salary schedule for years 2016-17, 2017-18, 2018-19 and 2019-20 is $8,528,132 per year, which includes the estimated increases in Steps 2, 3, 6 and retirement. The total estimated cumulative cost to the State for all five years of proposed increases is $42,640,660.
    
    The county boards of education would also incur additional costs for the salary increases for service personnel who are over formula and for all other service personnel employed from other funding sources. The estimated cost to the county boards of education for the 2015-16 year for a $50 monthly across the board increase in the basic service personnel schedule is $1,371,759. This includes the estimated increases in service personnel salaries, fixed charges and retirement. The incremental annual estimated cost to the county boards of education for a $50 per month ($500 per year) across the board increase in the basic service personnel schedule for years 2016-17, 2017-18, 2018-19 and 2019-20 is $1,371,759 per year, which includes 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 $6,858,795.
    
    The total combined estimated cost for both the State and the county boards of education for the five year service personnel salary increase contained in the proposed legislation is $49,499,455.
    
    Please note that the bill purpose language states "....total pay increase after five years is $250 monthly, which works out to $3,000 in annual salary." Service personnel work over a 10 month calendar; therefore, the annual increase in salary after five years would be only $2,500 and not the $3,000 indicated in the purpose.



Memorandum


    



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