FISCAL NOTE
FUND(S):
Other
Sources of Revenue:
Other Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
If the assessments would trigger on for entire fiscal year 2010, we estimate that the assessments would generate $155,483,458 for the UC Trust Fund. This would break down as $ 113,577,066 in employer assessments and $41,906,392 in employee assessments.
This estimate uses the rates included in the language of the bill.
The proposed legislation would trigger on employer/employee assessments if the UC Trust Fund balance would be less than $180 million dollars at the end of any calendar quarter. The assessments would trigger off if the UC Trust Fund balance was in excess of $250 million dollars at the end of any calendar quarter.
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 |
136,636 |
90,958 |
93,584 |
| Personal Services |
73,056 |
62,592 |
64,470 |
| Current Expenses |
63,580 |
28,366 |
29,114 |
| 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):
Start Up Cost – These cost involve revising our automated tax system for the surtax monies and data; interfacing changes to the image system with our mainframe program; contract cost for modification of the Imaging System and redesign of forms; postage for mailing notices, tax unit staff cost for coordinating & testing; miscellaneous cost; etc. Time frame is two to three months.
Ongoing Cost – A new position would be needed if this bill passes because of the increased number of checks received each quarter will greatly increase. This will cause the amount of data entry and other activities to increase substantially. The amount of delinquent money due will likely increase since some employers will not submit payment with their reports, thereby increasing the number of debit memos that have to be mailed and collection activities. Also, staff time will be required for reporting, mailing notices to employer, edits to program, answering inquires, etc. Also, nonpersonal cost involves employer notice of eliminating surtax; supplies; IS & C cost, etc.
Note: First year includes startup and on-going cost. Second and third year includes 3% annual inflationary costs for on-going cost.
Memorandum
Person submitting Fiscal Note: Caren Jenkins
Email Address: cjenkins@workforcewv.org