FISCAL NOTE

Date Requested: January 14, 2016
Time Requested: 11:00 AM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
1182 Introduced SB114
CBD Subject:


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 estimated cumulative cost to the State for all five years of proposed increases is $42,070,605. The estimated cumulative cost to the county boards of education for all five years of proposed increases is $7,291,495. 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 $49,362,100.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 9,872,420 49,362,100
Personal Services 0 0 0
Current Expenses 0 8,414,121 42,070,605
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 1,458,299 7,291,495
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 2016-17 year for a $50 monthly across the board increase in the basic service personnel salary schedule is $8,414,121. 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 2017-18, 2018-19, 2019-20 and 2020-21 is $8,414,121 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 $42,070,605. 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 2016-17 year for a $50 monthly across the board increase in the basic service personnel schedule is $1,458,299. 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 2017-18, 2018-19, 2019-20 and 2020-21 is $1,458,299 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 $7,291,495. 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 $49,362,100.



Memorandum


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 bill purpose.



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