FUND(S):

UI Trust Fund

Sources of Revenue:

Other Fund UI Trust Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


    Increasing the Nondeductible Earnings to 40% of the Weekly Benefit Amount (WBA) would result in an estimated additional benefits cost of $2,011,643 during 2010. If partial unemployment claims decrease 5% per year, then the additional benefit cost would be $1,911,061 in 2011, $1,815,507 in 2012 and $1,724,732 in 2013.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 1,986,061 1,890,507 1,799,732
Personal Services 50,000 50,000 50,000
Current Expenses 25,000 25,000 25,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 1,911,061 1,815,507 1,724,732
2. Estimated Total Revenues 0 0 0


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


    NON DEDUCTIBLE EARNINGS
    40% OF WBA
    1/21/2011
     PARTIAL
    ITEMS WEEKS
     COMPENSATED
    
    Partial First Payments CY 2010 5,182
    Partial Continued Weeks CY 2010 64,083
    TOTAL WEEKS 69,265
    
    ESTIMATE BASED ON AVERAGE WBA
    
    AVERAGE WBA (6-2010) $264.77
    PROPOSED 40%
    NON-DEDUCTIBLE $106.00
    CURRENT $60.00
    EXTRA BENEFITS PAID $46.00
    WEEKS 43,819
    ADDITIONAL BENEFITS PAID CY10 $2,011,643
    
    CY11 BENEFITS PAID 5% DECREASE $1,911,061
    
    CY12 BENEFITS PAID 5% DECREASE $1,815,507
    
    CY13 BENEFITS PAID 5% DECREASE $1,724,732
    



Memorandum


    We are unable to accurately estimate the administrative cost of this proposal. However, significant programming changes would have to be completed, forms/booklet would have to be revised and additional staff time spent reviewing this change in our Law. Our best estimates would be $50,000 in staff cost and $25,000 in nonpersonal expenses.



    Person submitting Fiscal Note: Caren R. Jenkins
    Email Address: Caren.R.Jenkins@wv.gov