FISCAL NOTE

Date Requested: February 01, 2016
Time Requested: 03:00 PM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
1956 Introduced SB452
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 estimated cost savings to the State of West Virginia under the Public School Support Program (PSSP) as the result of the proposed legislation is $14,848,583 for FY 2017. Upon full implementation in FY18 and beyond, the estimated cost savings to the State of West Virginia is $16,984,089.



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 0 0
Personal Services 0 0 0
Current Expenses 0 -14,848,583 -16,984,089
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 of $14,848,583 are attributable to the following:
    
    For the changes in the professional educator ratios under the funding formula, the total estimated statewide savings are $6,515,367. This consists of savings of $4,758,320 in Step 1 for professional salaries, $410,172 savings in Step 3 for related fixed charges, $594,791 in Step 6 for current expenditures, and $752,084 for PEIA. The proposed ratio changes will result in a statewide reduction of 114.98 funded professional educator positions. Note that the proposed legislation increases the ratios for sparse and low population density county boards but decreases the ratios for medium and high density county boards.
    
    For the changes in the service personnel ratios under the funding formula, the total estimated additional cost to the state is $400,077. This consists of additional estimated costs of $269,263 in Step 2 for service salaries, $23,210 in Step 3 for related fixed charges, $33,658 in Step 6 for current expenditures, and $73,946 for PEIA. The proposed ratio changes will result in an additional 11.305 funded service personnel positions statewide. Note that the proposed legislation increases the ratios for sparse and low population density county boards but decreases the ratios for medium and high density county boards.
    
    The total estimated savings related to the change in the bus replacement cycle from 12 years to 15 years is $3,641,268 for the FY17 year. This amount increases to estimated savings of $5,776,774 in future years once the statutory cap of $18 million for FY17 bus replacement is no longer in effect. The future year savings also includes an assumption that the county boards will experience a slight increase in their repairs and maintenance expenses as the result of utilizing the buses for an additional three years.
    
    The proposed legislation reduces the Step 7a - Allowance for the Improvement of Instructional Programs by $3,799,302.
    
    The estimated savings to the state from the elimination of the Growth Counties Facilities Act is a net $1,292,723. The estimated increase in local share (which reduces the amount of state aid funding) is $1,846,747. Of the growth in local share, 30% is dedicated to Steps 7a and 7b (10% to Step 7a - Allowance for the Improvement of Instructional Programs and 20% to Step 7b - 21st Century Technology Systems). This means that an additional $184,675 is allocated statewide to the county boards of education for Step 7a and additional $369,349 is allocated for Step 7b.
    



Memorandum


    



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