FISCAL NOTE
FUND(S):
All
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 salary increases for state employees based on residential housing prices. The annual increases are two percent of the employee's regular salary for every ten percent that residential home prices in the employee's county of residence exceed the statewide average for residential homes.
Based on the U.S. Census Bureau "2005-2007 American Community Survey - 3-Year Estimates" for "Median Housing Value of Owner-Occupied Housing Units (Dollars)," median residential housing values for thirteen counties exceed the state median of $89,500. Of those thirteen counties, the median values for six counties (Berkeley, Hampshire, Jefferson, Mineral, Monongalia, and Putnam) exceed the the state median by at least ten percent. Using data from the WorkForce West Virginia report of "West Virginia Employment and Wages - 2nd Quarter 2008," it is estimated that the proposed legislation would cost $41,019,694 in the first year (FY 2010) and $47,854,173 for the second year (FY 2011). Since this is an annual increase, the increase for each subsequent year builds on the previous year's increase. Upon full implementation, the increase per fiscal year must be based on the current wages for affected employees as well as the most current information regarding residential housing values.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2009
Increase/Decrease
(use"-") |
2010
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
41,019,694 |
47,854,173 |
0 |
| Personal Services |
33,900,573 |
39,548,903 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
7,119,120 |
8,305,270 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The above estimate is based on the following data and assumptions.
► Information on residential housing values was obtained from the U.S. Census Bureau "2005-2007 American Community Survey - 3-Year Estimates" for "Median Housing Value of Owner-Occupied Housing Units (Dollars)."
► Information on state wages paid by county was obtained from the WorkForce West Virginia report of "West Virginia Employment and Wages - 2nd Quarter 2008."
► The proposed legislation calls for the increases to be given to employees with three or more years of service. Detailed salary information relative to years of service was not available by county. Consequently, this estimate includes state wages paid by county for all state employees in the county.
► The proposed legislation calls for the increases to be given based on the county in which an employee resides. Detailed information regarding county of residence and wages was not available. Consequently, the estimate uses state wages paid in the county (i.e., assumes work county = county of residence).
► Benefits include 10.5% retirement contribution, 7.65% Social Security and Medicare, and 2.85% Workers Compensation for a total of 21%.
Memorandum
Person submitting Fiscal Note: Tari McClintock Crouse
Email Address: tari.m.crouse@wv.gov