FISCAL NOTE
Date Requested: March 15, 2017
Time Requested: 02:00 PM |
| Agency: |
Education, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3024 |
Introduced |
SB609 |
|
|---|
| CBD Subject: |
|
|---|
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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 create additional flexibility for school systems in the use of school aid funds. The total estimated cost savings to the State for the 2017-18 year from the proposed legislation is $53,354,991. The total estimated cost to the State for fiscal years thereafter is $1,794,852.
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 |
-53,354,991 |
1,794,852 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
-53,354,991 |
1,794,852 |
| 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 total estimated cost savings to the State for the proposed legislation is $53,354,991 for the 2017-18 year. The cost savings is due to the proposed addition of WVC 18-9A-12(e) which funds the total basic state aid to each county board of education at only 95% of the amount calculated for the 2018 fiscal year, resulting in a one-year cost savings to the State of $55,149,843. These cost savings are offset partially by the additional cost of $1,794,852 for the other provisions of the proposed legislation, which would continue in future years.
A portion of the additional cost is related to those county boards of education that currently employ less professional educators and service personnel than the allowable amount calculated per the enrollment limits and are therefore funded for the lower number actually employed. The proposed legislation funds the county boards at the enrollment limits even if the personnel are not actually employed by the county board. The estimated cost for funding at the enrollment limits for the 2016-17 year is $421,533. This consists of an increase in Step 1 (Allowance for Professional Educators) of $282,945, Step 2 (Allowance for Service Personnel) of $23,849, Step 3 (Allowance for Fixed Charges) of $26,415, Step 6b (Allowance for Substitutes) of $7,670, Retirement of $25,729 and PEIA of $54,925.
The remaining additional cost is due to the change in the calculation of Step 6a - Allowance for Current Expense. The proposed change is estimated to cost an additional $1,394,121 for the 2017-18 school year. Because the Step 6a amount for Doddridge County increases under the proposed calculation, the local share cap for Doddridge County was adjusted accordingly to maintain the county at zero state aid funding ($20,802).
Excluding the one-year cost savings for 2017-18 from the 95% funding limit, the estimated cost for the proposed legislation would vary each year depending on the changes in student enrollment and county personnel that sometimes result in county boards of education employing less personnel than allowed by the state aid funding formula (i.e. being under formula). For the 2017-18 funding year for example, one county board of education is under formula in the service personnel category, but for the 2016-17 year, there were no county boards of education below formula for service personnel. The estimated cost for Step 6a will also vary due to square footage changes throughout the state, due to changes in the actual maintenance and operations costs incurred by the county boards of education, and changes in student enrollment.
Memorandum
There are several provisions included in the proposed legislation that would have no fiscal impact on the State.
• There is no anticipated cost to the State for the proposed changes to WVC 18-9A-6a. The revised language matches the calculation currently performed by the WV Department of Education (WVDE).
• There is no anticipated cost to the State for the additional flexibility granted under WVC 18-9A-7 allowing the use of bus replacement funds up to $200,000 for alternate purposes. This flexibility does not change the way the funding is calculated under the PSSP.
• There is no estimated additional cost to the State for the additional proposed flexibility allowing county boards of education to utilize a portion of their Step 7b funding to employ Technology System Specialists (TSS) under 18-9A-10. This flexibility does not increase the overall amount of Step 7b funding. In addition, there is no estimated additional cost to the State to allow flexibility in allowing the county boards of education to spend up to 25% of their Step 7a funds for alternate purposes or up to 50% of their Step 7b funds for alternate purposes.
• There is no measurable cost to the State for including the Treasurer/Chief School Business Official and Child Nutrition Director as professional educator positions eligible for state aid funding. Each county board of education will be funded for the number of personnel calculated per the limits, regardless of whether these two positions are eligible for funding. Including them in the professional educator amounts would potentially have a minor impact on the average state funded salary for professional educators utilized in the state aid funding calculation, but any impact would be negligible.
• There is no estimated cost to the State regarding the proposed change to WVC 18-9A-10(a)(4) regarding the timing of the payments by WVDE into the School Building Capital Improvements Fund. WVDE currently transfers the funds in accordance with the expenditure schedule approved by the state budget office as specified in the proposed language.
Person submitting Fiscal Note: Brenda Freed
Email Address: bfreed@k12.wv.us