FISCAL NOTE
Date Requested: February 17, 2017
Time Requested: 08:41 AM |
| Agency: |
School Building Authority, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1224 |
Introduced |
HB2409 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
3951
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
N/A
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
N/A
Memorandum
The proposed bill would not have a positive or negative impact on the operations of the School Building Authority. However, eliminating local fiscal participation in construction projects will drastically reduce the impact school construction and renovations will have on the identified needs for such projects statewide. For example, during the School Building Authority’s December 2016 NEEDS funding cycle, there were $48,944,292 in SBA funds awarded for new school construction and renovations statewide. In addition there were $49,828,722 in local funds to compliment the SBA allocation. The SBA has also committed funds in the amount of $23,077,215 dedicated to these projects from future funding cycles. The combination of state, local and future funding cycles will account for more than $121.8 million in total improvements statewide. Without local assistance we would have only realized $48.9 million in total improvements. This reduction would have a dramatic impact on our ability to address the more than $2 billion worth of identified school improvements statewide. A total that continues to increase by three percent annually.
In addition to the impact on our annual improvements these changes would eliminate the Authority’s ability to multi-year fund our larger projects. This change alone could prevent the construction of new high schools and/or middle schools in the future. Currently the Authority uses the multi-year funding capabilities to fund these large projects allowing the impact of SBA funds to spread further across the state. Without this capability during some years, the SBA would only be able to fund one school if that school was identified as the greatest need.
Person submitting Fiscal Note: Frank L. Blackwell
Email Address: Frank.L.Blackwell@wv.gov