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.

This bill would increase the maximum cash award given to employees through the Employee Suggestion Award Board from 10,000 to 16,000. It also requires the board to report to the legislature every five years and allows the Governor to make a secondary award of up to 5,000.00. There would be no fiscal impact as a result of the passage of the bill. The employee suggestion award board progrom rewards employees who submit suggestions that result in savings to the State. Once the suggestion is submitted by the employee and approved by the board, the cost savings is tracked for one year by the agency prior to the employee receiveing compensation for the sugggestion. The statute limits the award allowed to twenty percent of the actual savings. With passage of this legisation the maximum award will be 16,000. In order for an employee to receive the maximum amount they would have saved the state 80,000. This would be an actual savings and not an increased cost. The secondary award allowed by the Governor is not mandatory and would only be given if the savings as a result of the suggestion was greater than the amount to be given to the employee.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2009 Increase/Decrease (use"-")	2010 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	0	0
Personal Services	0	0	0
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):

There would be no additional costs to the state as a result of this bill as the employee would only be compensated for up to twenty percent of the actual savings.

Memorandum

Person submitting Fiscal Note: Donna Lipscomb
Email Address: donna.m.lipscomb@wv.gov