FISCAL NOTE



FUND(S):

Special Revenue

Sources of Revenue:

Other Fund Unclaimed Property Trust

Legislation creates:

A New Fund,Neither Program nor Fund



Fiscal Note Summary


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


The language that creates the WV Voluntary Employee Retirement Account Program requires the program to be self-sufficient. Specifically, if any appropriations are made to the program by the Legislature, the Program will be required to pay those appropriations back to the fund from which they were appropriated from the fees generated by the program. Initially, the language in the bill requires the appropriation of $3.0 million from the Unclaimed Property Trust Fund to the Voluntary Employee Retirement Accounts Plan Administration Account. When the program commences operations and begins collecting fees charged by the program to participants, the income to the account will be used to operate the program and to reimburse the state for the startup costs of running the program.



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 0 600,000 500,000
Personal Services 0 150,000 175,000
Current Expenses 0 450,000 325,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 3,000,000 0 0


Explanation of above estimates (including long-range effect):


Initial startup funding will be $3,000,000 and will come from the Unclaimed Property Trust Fund. No additional state funding is contemplated. In addition, one the program is running, all fees charged by the program to participants will be used to maintain the program and also to pay back the initial $3,000,000 of startup funding. Thus, the program will be revenue neutral. The $3.0 million will be used over 5 years for startup costs. A preliminary budget shows using $150,000 for the first year for personnel and benefits with $175,000 per year being utilized thereafter for personnel and benefits. Current Expenses would be $450,000 the first year, $550,000 the second year, $500,000 the third year, $325,000 the fourth year and thereafter. Fees charged by the program to participants would cover all costs after the initial startup funds are used. In addition, these fees would also cover the repayments to the Unclaimed Property Trust Fund and or other appropriations made by the Legislature.



Memorandum






    Person submitting Fiscal Note: Blair Taylor
    Email Address: blair.taylor@wvsto.com