FISCAL NOTE

Date Requested: February 08, 2017
Time Requested: 06:22 PM
Agency: Education, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1011 Introduced SB2
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 add a new section to the Public School Support Program, designated ยง18-9A-13, relating to adding an amount to the appropriation for serving exceptional students with high-cost/high-acuity special needs that is based on the reduction in net enrollment multiplied by the average net state aid per pupil for the preceding school year; limiting the amount added; and providing for disbursement of amount added. The estimated cost to the State for the proposed legislation is $4,717,022 for FY18.



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 4,717,022 4,717,022
Personal Services 0 0 0
Current Expenses 0 4,717,022 4,717,022
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):


The proposed legislation captures the decrease in the state aid funding due to the decrease in net enrollment from the preceding school year and dedicates those funds to the allowance for exceptional students with high-cost/high-acuity special needs, limited to the amount that the combined state and federal funding for that purpose was insufficient to reimburse all eligible county boards fully for those costs in the most recent year available. The overall reduction in state aid funding due to the decrease in net enrollment is calculated to be $14,464,270 for FY18. This number was calculated by multiplying the decline in net enrollment of 3,611.95 FTE by the average net state aid per pupil for the 2016-17 school year of $4,004.56 per pupil. However, the full amount of the decline in state aid funding due to the decrease in enrollment is not needed for the FY18 high cost/high acuity funding. The amount of funding needed for FY18 of $4,717,022 is based on the 2016 high cost/high acuity grant funding cycle, which is the most recent year available. For the 2016 grants to county boards of education, WVDE received applications with costs for eligible students totaling $7,053,011 statewide. The total amount of funding available between state ($1,500,000) and federal ($835,989) sources was $2,335,989, which means an additional $4,717,022 ($7,053,011 less $2,335,989) would have been needed to fully fund the requests from the county boards of education in the 2016 year. Note that the amount of funding needed for high cost/high acuity students varies each year based on the student population, number of county boards of education submitting grant applications, and average per pupil expenditure for regular education students. Therefore, WVDE is unable to predict the maximum amount of funding that would be needed for this purpose in any given year. However, since the inception of the state funding for high acuity during FY2009, the largest amount of unfunded grant requests received has been $4,717,022 in FY16. This amount was utilized for the cost upon full implementation. This fiscal note assumes that the full $1,500,000 previously appropriated for this purpose will again be appropriated during FY18.



Memorandum






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