Date Requested: February 03, 2015
Time Requested: 02:29 PM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
2120 Introduced HB2572
CBD Subject: EDUCATION (K-12)


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 allow county boards of education that are categorized as low student density county boards for state aid funding purposes to operate their schools on a four day school week basis. This category includes only the following 14 county boards for the current year: Barbour, Boone, Clay, Greenbrier, Hampshire, Lewis, Lincoln, Mason, McDowell, Nicholas, Pleasants, Preston, Wetzel, and Wyoming.



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 0 0
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 -442,419 -2,029,584


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


    For FY 2016 and FY2017, the estimated net loss of revenue to the low-student population density county boards by moving to a four-day school week is $442,419 per year. The loss in revenue for this group of 14 county boards is projected to be $3,968,594 per year from the reimbursement of meals through the Child Nutrition Program, but that loss would be offset by a estimated reduction in operating expenses, including child nutrition, transportation, and utility expenses, of $3,526,175, resulting in a net loss of $442,419 per year for the group of 14 districts.
    
    For FY2018 and beyond, the estimated net loss to the county boards is $2,029,584 per year. The reduced transportation expenditures would result in an estimated reduction of at least $1,587,165 in state aid to the county boards, because the allowance for transportation (Step 4 of the Public School Support Program)(PSSP) is based on actual expenditures. Combined with the lost revenue of $3,968,594 for the Child Nutrition Program, County boards would have a total reduction in revenue of $5,555,759. This revenue reduction is offset by an estimated reduction of operating expenses, as discussed above, of $3,526,175 resulting in an estimated net loss of $2,029,584 combined for the 14 county group.
    
    These estimates are based on the assumption that all personnel would still receive the salaries to which they are currently entitled, including the bus operators, cooks and others whose work loads would be reduced. And the estimated loss in revenue does not take into account the non-financial impact of the provisions in the bill on students, which would include the reduced opportunities for them to receive nutritional, well-balanced, hot meals by 20%, and would be disruptive to the structured instructional routines and the extra-curricular opportunities that a five day instructional week allows. In addition, the estimate does not take into account the additional costs parents would incur for day care.
    
    It should be noted that the estimated reduction in state aid for transportation would reduce the State costs under the PSSP, but should the salaries of the personnel be reduced due to reduced workloads, there would be a loss in income and sales tax revenues for the State, and a potential increase in welfare and Medicaid costs, but there is insufficient data to be able to compute the net effect this bill would have on the State.



Memorandum


    



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