FISCAL NOTE

Date Requested: January 19, 2018
Time Requested: 11:48 AM
Agency: Education, WV State Board of
CBD Number: Version: Bill Number: Resolution Number:
1814 Introduced HB4224
CBD Subject: Education (K12)


FUND(S):

N/A

Sources of Revenue:

Other Fund N/A

Legislation creates:





Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    There is no additional cost or savings to the State for this proposed legislation since the allowances under the Public School Support Program are not being revised. The estimated savings to the county boards of education for the proposed legislation is $6,552,412 for fiscal years 2019 and thereafter.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 -6,552,412 -6,552,412
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 -6,552,412 -6,552,412
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    There is no additional cost or savings to the State for this proposed legislation since the allowances under the Public School Support Program are not being revised. The estimated savings to the county boards of education for the proposed legislation is $6,552,412 for fiscal years 2019 and thereafter.
    
    The proposed legislation defines the work day for service personnel as consisting of eight hours. The proposed legislation also requires that service personnel be paid in accordance with hours worked and that any amount of time exceeding the eight-hour work day be considered overtime and paid accordingly.
    
    To estimate the fiscal impact this proposed legislation may have on the county boards of education, a sample of 7 county boards of education from differing population densities and student enrollment populations were surveyed and asked to project the potential additional costs or savings their district would experience as the result of the proposed legislation. All responses received estimated that the proposed legislation would provide savings or no change to their current costs. The responses were summarized and used to determine an average savings of $478.36 per service personnel FTE. The average was then applied to the county boards of education that were not included in the survey to arrive at an estimated cost savings of $6,552,412. The actual cost savings experienced by each county may differ from this imputed estimated.
    
    Under current statute, full-time service personnel are to be paid a full day's salary if they work their normal shift, which could be less than eight hours. The estimate above assumes that the proposed legislation would require all service personnel to work at least eight hours per day and that the compensation for those continuing to work less than 8 hours would adjusted in accordance with actual hours worked. County boards of education would experience savings due to decreased compensation for service personnel working under eight hours per day or due to reduced contract days and/or positions for efficiencies gained by redistributing work load among those employees currently working less than 8 hours per day but who would work additional hours each day moving forward.
    
    County Boards of Education that already require all of their service employees to work eight hours per day are expected to see no changes from this proposed legislation.



Memorandum


    The proposed legislation conflicts with W. Va. Code 18A-4-8(m)(2), which currently prohibits, without prior written consent, county boards of education to relegate any condition of a service person's employment which would result in a reduction of his or her salary, rate of pay, compensation or benefits earned during the current fiscal year; or for which he or she would qualify by continuing in the same job position and classification held during that fiscal year and subsequent years. Requiring a service person to work additional hours each day (ex: from 6.5 hours currently to 8 hours a day if legislation passes) for the same annual salary would result in a lower hourly rate of pay.
    
    The proposed legislation also conflicts with the language in WVC 18A-4-8a, which establishes the state minimum monthly minimum pay tables for service personnel. That existing statute requires that the pay for all service employees whose employment contract is for a period of more than 3.5 hours per day be at least the amount of the state minimum salary for service personnel. It also requires that service employees with an employment contract of 3.5 hours or less be paid at least one-half of the state minimum salary for service personnel. This statutory provision would prohibit county boards from adjusting the pay of service personnel in accordance with the actual hours worked.



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