FISCAL NOTE
FUND(S):
Sources of Revenue:
General Fund,Special Fund,Other Fund Federal
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
House Bill 2932 eliminates levels 3 and 4 of the current grievance procedure for state employees and employees of county boards of education and instead provides for binding arbitration.
By eliminating level 4 of the current grievance procedure, this measure would eliminate the Education and State Employees Grievance Board which would offset some of the cost of the binding arbitration.
The estimated cost of this measure is $1,137,082 for Fiscal Year 2005. This is based on 1,805 grievances arbitrated at an average cost of $1,150 for a total of $2,075,750 minus the FY 2005 appropriation for the Education and State Employees Grievance Board ($938,668).
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2005
Increase/Decrease
(use"-") |
2006
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
1,137,082 |
1,447,582 |
1,805,232 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
1,137,082 |
1,447,582 |
1,805,232 |
| 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):
In its Fiscal Year 2004 Annual Report, the Education and State Employees Grievance Board reported 498 grievances filed at level 4. Based on data collected from state agencies, it is estimated that 46% of grievances denied at level 2 are appealed to level 3 and that 69% of grievances denied at level 3 are appealed to level 4. Using this data, it is estimated that 1,570 grievances in FY 2004 would have been subject to binding arbitration (i.e., filed at level 3). Based on a 15% increase shown in the number of level 4 grievances from FY 2003 to FY 2004, it is estimated that 1,805 grievances in FY 2005 and 2,075 grievances in FY 2006 would be subject to binding arbitration.
The American Arbitration Association's fee structure for employer-promulgated plans includes a filing fee of $750 and a $300 hearing fee for each day of hearing. This measure specified that the employee pays $50 of the cost. The remainder of the cost is estimated to be $1,150 per grievance based on $700 for the filing fee and an average $450 hearing fee.
The estimated cost of this measure is $1,137,082 for Fiscal Year 2005. This is based on 1,805 grievances arbitrated at an average cost of $1,150 for a total of $2,075,750 minus the FY 2005 appropriation for the Education and State Employees Grievance Board ($938,668).
Memorandum
Person submitting Fiscal Note: T.M. Crouse for Willard M. (Max) Farley
Email Address: tcrouse@wvadmin.gov