Sources of Revenue:

General 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 authorize a $2,000 salary increase for civil service employees at state hospitals that did not receive a $2,000 salary increase in 2007. An across-the-board 3.5% salary increase was provided to state employees July 1, 2007, with a floor of $600 and a ceiling of $1,200. In addition, specific classifications were given an increase of $2,004 which exceeded the 3.5% salary increase. The Department's Bureau for Behavioral Health and Health Facilities employed 1,549.13 FTE's as of June 30, 2007 at the state hospitals. There were two employees at the state hospitals that received this higher salary increase. Therefore, 1,547.13 employees would qualify for this salary increase resulting in a total cost to the Department of $3,738,044 ($3,094,260 in salaries and $643,794 in benefits).

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2008 Increase/Decrease (use"-")	2009 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	3,738,054	3,738,054
Personal Services	0	3,738,054	3,738,054
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 total cost to the Department of $3,738,054 is based upon the following: $3,094,260 in salaries (1,547.13 employees * $2,000) and $643,794 in benefits (FICA and PERS at 18.15% of personal services and workers compensation at the following rates: Hopemont - 1.57%, Lakin - 1.82%, Manchin - 1.48%, Pinecrest - 3.99%, Welch - 3.76%, Sharpe - 1.87%, and Bateman - 3.38%). This estimate assumes that these employees would receive a total salary increase of $2,000 versus the difference in what they received July 1, 2007 and the $2,000. Example: Employee A received an across-the-board salary increase of $600 on July 1, 2007, therefore they would now be eligible for an additional salary increase of $2,000 based on this legislation rather than $2,000 - $600 = $1,400.

Memorandum

There appears to be a technical flaw in this bill. It references section one, article six, chapter twenty of the code for the definition of classified civil service employees at a state hospital. This section actually falls under Natural Resources and has been repealed.

Person submitting Fiscal Note: Martha Yeager Walker
Email Address: fnbudoff@wvdhhr.org