FISCAL NOTE
FUND(S):
Various
Sources of Revenue:
General Fund,Special Fund,Other Fund
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 provide a one-time monetary incentive for eligible employees for the purpose of recruitment, retention, and improving the quality of service provided by the State of West Virginia. This bill only affects state employees and does not include the incentive for School Service Personnel. The legislation providing incentive for School Service Personnel is contained in a separate bill. The general revenue cost of providing the incentive for State employees only is $15,867,517.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2007
Increase/Decrease
(use"-") |
2008
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
15,867,517 |
15,867,517 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| 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 monetary incentive would apply to State employees who are employed on August 1, 2007, with at least seven months service only. The amount of the monetary incentive would be 2.5% of each employees base salary, with a minimum of $600.00 and a maximum of $1,200.00 to be paid to each employee.
There are a total of 15,205.52 full time state employees. 4,071.35 employees will receive $600; 3,020.43 employees will receive $1,200; and 7,613.74 employees will receive an amount in the middle.
There are 500 employees with WVU Health Science. I do not know what amount these employees would receive. Therefore, since these employees are in the medical profession I assumed all of them would receive $1,200.00.
The costs reflected above is the General Revenue costs only. There would also be a fiscal impact on Federal funds, Special Revenue funds and the State Road Fund. The exact amount of the impact is unknown.
In addition to the money paid to the individual employees, the general revenue fund would also pay the agencies the costs of benefits associated with the incentive pay. The breakdown of costs is identified below. The total fiscal impact shown above does include the benefit costs.
State Employees:
$600.00 is $2,442,810 plus 20% benefits of $488,562 for total of $2,931,372.
$600 - $1,200 is 3,624,516 plus 20% benefits of $724,904 for a total of $4,349,420.
$1,200 is $6,471,281 plus 20% benefits of $1,294,256 for a total of $7,765,537.
WVUHS is $684,322 plus 20% benefits of $136,865 for a total of $821,187.
WVUHS:
$1,200 is $684,322 plus 20% benefits of $136,865 for a total of $821,187.
Memorandum
There is separate legislation being proposed that would give the same monetary incentive to School Service Personnel. The costs associated for those employees are shown below and are not reflected in the figure shown above.
There are 12,412.06 School Service Employees. 11,700.39 employees will receive $600; 0 employees will receive 1,200; and 711.67 employees will receive an amount in the middle. The cost of the monetary incentive for School Service Personnel would be $10,170,646.
Person submitting Fiscal Note: Donna Lipscomb
Email Address: dlipscomb@wvadmin.gov