Date Requested:February 23, 2005
Time Requested:02:08 PM
Agency: Adjutant General
CBD Number: Version: Bill Number: Resolution Number:
2005R1238 Intro SB252
CBD Subject: $250,000 Life Insurance
FUND(S)
Sources of Revenue
General Fund
Legislation creates:
A New Fund

Fiscal Note Summary

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

    
    This bill will increase the costs to state government. The estimated
    
    increase in costs to the state is approximately $l,209,000 plus
    
    workers compensation estimated to cost an addtional $24,000, unless
    
    the workers compensation is waived for these funds.
    
    Individuals will be required to pay state and federal income taxes
    
    on the amount they received for the year ($l95.00).

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 408,306 1,233,000 1,233,000
Personal Services 403,000 1,209,000 1,209,000
Current Expenses 8,006 24,000 32,006
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    
    This fiscal note is based on the maximum amount of Servicemembers
    
    Group Life Insurance of $250,000 at a monthly premium of $16.25 per
    
    active member in the West Virginia Army and Air National Guard.
    
    The estimated strength of the Guard to be 6,200 active members. The
    
    annual cost for FY 2006 and each year there after to be $l,209,000,
    
    (Computed: 6,200 soldiers X $195.00 premium per year for 250,000
    
    life insurance = $l,209,000 total per year.)
    
    For Fiscal Year 2005 - If the bill become effective l March 2005,
    
    then the cost for four (4) months in FY-05 would be $403,000 based
    
    on the above computation.
    
    The cost of workers compenation would be additional $24,000 per
    
    year. ($l,209,000 divided by l00 = l2,000 X rate of $2.00=$24,000.


Memorandum
Person submitting Fiscal Note:
Frank Hayden
Email Address:
frank.hayden@wv.ngb.army.mil