FISCAL NOTE



FUND(S):

WV Service Members' Life Insurance Reimbursement Fund

Sources of Revenue:

Special Fund

Legislation creates:

A New Program,A New Fund



Fiscal Note Summary


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


Group Life Insurance of $250,000 at a monthly premium of $18.50 per active member in the West Virginia Army and Air National Guard. The Guard currently has 6,759 active members. The total cost per year would be $1,500,498. (Computed: 6,759 soldiers X $222 premium per year) NOTE: Life insurance is currently available up to a maximum of $400,000 as opposed to $250,00 as stated in the bill. The monthly premium for $400,000 is $29.00 per active member. The total cost per year for 6,759 would be $2,352,132. (Computed: 6,759 soldiers X $348 premium per year)



Fiscal Note Detail


Effect of Proposal Fiscal Year
2008
Increase/Decrease
(use"-")
2009
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 250,083 1,500,498 1,500,498
Personal Services 250,083 1,500,498 1,500,498
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 Personal Services category costs are a result of the expenditures being reimbursed to guardsmen for life insurance premiums. There are no estimated total revenues because the bill does not establish any type of fee to generate revenue. The fiscal year 2008 total of $250,083 is the cost for May and June 2008. The fiscal year 2009 total is based on the calculation above in the Fiscal Note Summary. NOTE: If using the $400,000 coverage amount, the fiscal year 2008 increase would be $390,022 for May and June 2008. The fiscal year 2009 increase would be $2,352,132 as noted in the Fiscal Note Summary above.



Memorandum


(1) The current maximum life insurance coverage available is $400,00 not $250,000. (2) Is the intent of the bill to provide reimbursement to ALL National guardsmen or only those soliders on active duty? Also, does active duty include state as well as federal Title 10 active duty? Section 5b states the purpose of this bill is "... to provide a benefit to all members of the West Virginia National Guard in exchange for ... extended periods of active duty in combat areas, in addition to their increased contributions to the safety and welfare of the citizens of the State of West Virginia". but the first paragraph of the bill states "...in recognition of their assumption of extended periods of active duty in combat areas".



    Person submitting Fiscal Note: Rhonda L. Combs
    Email Address: rhonda.combs@wv.ngb.army.mil