Date Requested: January 26, 2015
Time Requested: 10:24 AM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
1912 Introduced HB2413
CBD Subject: Education (K12)


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 pay rates for teachers and service personnel employed by county boards of education and institutions of higher education for work assignments outside regular school days or regular employment duties or beyond contracted employment periods.



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 23,934,805 23,934,805
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 23,934,805 23,934,805
2. Estimated Total Revenues 0 0 0


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


    There would be no additional cost to the State for this proposed legislation since the allowances under the Public School Support Program are not being increased. The estimated cost to the county boards of education for the proposed legislation is $23,934,805 for fiscal years 2016 and thereafter.
    
    The language in the proposed legislation states that county boards of education and regional educational service agencies will be required to pay a teacher or service personnel performing a work assignment outside the regular school day or beyond a contracted employment period at a rate of pay equal to or greater than the calculated daily rate of pay based upon the employee's current salary. The estimate herein assumes that the hourly rate of pay was the intended rate of pay for the proposed legislation. In order to estimate this cost, seven (7) county boards of education were surveyed and asked to estimate the increased cost to their county. The average increase in payroll costs for the surveyed counties (0.85%) was used to extrapolate the increased cost for all other county boards of education. The total estimated cost to the county boards of education is made up of $20,382,190 salary increase, $1,752,868 employee benefit cost increase at 8.60%, and $1,799,747 retirement increase at 8.83%.
    
    Please note that the above estimate does not consider the additional cost to county boards of education for teachers' classroom related work being completed outside of the regular school day (ex., grading papers after school hours). This estimate assumes that classroom related work being completed outside of the regular school day is an expected part of the job duties assigned to teachers and is not considered to be an additional work assignment outside of the regular school day or work beyond a contracted employment period. The estimated cost to the county boards of education would significantly increase if county boards of education were required to pay teachers for classroom related work being completed outside of the regular school day.
    
    The estimated cost to the county boards of education would increase significantly to $85,360,654 if the language of the proposed legislation is not revised to change the basis of the rate of pay from calculated daily rates to calculated hourly rates. The $85,360,654 estimated cost is based upon the actual wording of the proposed legislation which will require county boards of education to pay employees their average daily rate for each instance in which they work outside of the regular school day or beyond a contracted employment period.



Memorandum


    



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