Date Requested:January 27, 2011
Time Requested:04:13 PM
Agency: Workforce WV
CBD Number: Version: Bill Number: Resolution Number:
2011R2287 Introduced SB310
CBD Subject: DOMESTIC VIOLENCE VICTIMS
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.

    
    This bill will allow Part Time Workers to receive unemployment benefits and eliminate the requirement that they seek full time work. This bill will also paid benefits to individuals who quit work due to spouse work-related relocation, quit to care for an ill family member or left work due to domestic violence. Individuals who quit due to family reasons will be eligible for unemployment benefit when they become available for work. If the bill meets Federal requirements, West Virginia should receive $22,117,753 in Federal funds which will be deposited our Benefit Trust Fund account for the payment of state benefits.
    
    We have estimated the cost of these additional benefits at over $8 million per year based on the current high Total Unemployment Rate (TUR) of 9%. Estimated benefit cost with a TUR of 4.6% to 4.7%, are $4.3 million.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 227,756 227,756 227,756
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 8,546,404 8,546,404 8,546,404
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    QUITS DUE TO COMPELLING FAMILY REASON
    Revised 1-28-2011
    
    
    BENEFITS – Based on National Employment Law Project (NELP) estimates for calendar year 2006.
    
    Quit to move with spouse 192 claims
    Quit to care for child or terminal ill spouse 385 claims
    Quit due to Domestic Violence 128 claims
    Total New Claims in 2006 at a 4.8 % TUR 705 claims
    
    
    Annual Benefits Paid @ 4.8% TUR – NELP’s estimates: $1,981,977
    
    - Average Duration of Benefit Weeks 12.19 weeks
    - Average Weekly Benefit Amount (AWB) $ 230.50
    - Number of Claimants 705
    Number of years DOL’s $11 Million allocation would last: 5.6
    
    Annual Benefits Paid @ 9.0% TUR for year ending 9/2010 $3,717,939
    
    - Average Duration of Benefit Weeks 17.9 weeks
    - Average Weekly Benefit Amount (AWB) $ 258.02
    - Number of Claimant (increased for Quits to Move w/Spouse) 805
    Number of years DOL’s $11 Million allocation would last: 3.0
    
    
    ADMINISTRATIVE COST
    .5 of a Position for Implementation @ $63,411 $ 31,706
    .5 of a Position for On Going Cost @ $41,398 $ 20,699
    Total Staff Cost $ 52,405
    
    Nonpersonal Service Cost at 39.4% $ 20,648
    Total Annual Administrative Cost $ 73,053
    
    
    
    ESTIMATED UNEMPLOYMENT COMPENSATION
    FOR PART-TIME WORKERS
    Updated 1-28-2011
    
    New UI Claims (Based on Calendar Year 2008) 61,966
    Percent of increase due to Part-Time Workers
    (Based on information from staff in Maine) x 3%
    Total of New Claims for Part-Time Workers 1,859
    
    Average duration (Based on Calendar Year 2008) 13.2(weeks)
    Total of Weeks Claimed by Part-Time Workers 24,539
    
    Estimated at 50% for Part-Time Workers $121.00
    (This estimate is based on the 2008 average weekly benefit of $242)
    
    Note: The New UI Claims estimated for the Part-Time Workers above are actually lower than the NELP figures based on 2008 of 1,966. These figures were estimated using the state of Maine information.
    
    Total Estimated Benefits for Part-Time at 4.7% TUR: $2,969,219
    Number of years DOL’s $11 Million dollars allocation will last: 3.7
    
    Total Estimated Benefits for Part-Time at 5.5% TUR: $3,474,618
    Number of years DOL’s $11 Million dollars allocation will last: 3.2
    
    Total Estimated Benefits for Part-Time at 9.2% TUR: $5,812,088 Number of years DOL’s $11 Million dollars allocation will last: 1.9
    
    Note: 9.2 % Total Unemployment Rate (TUR) is based on Federal Trigger Sheet dated January 23, 2011.
    
    National Employment Law Project (NELP) estimated cost for
    CY 2008 with a TUR of 4.7%: $2,350,362
    Number of years DOL’s $11 Million dollars allocation will last: 4.7
    
    Benefit cost projection based on TUR of 5.5%: $2,750,423
    Number of years DOL’s $11 Million dollars allocation will last: 4.0
    
    Benefit cost projection based on TUR of 9.2%: $4,600,709
    Number of years DOL’s $11 Million dollars allocation will last: 2.4
    
    Note: 9.2 % Total Unemployment Rate (TUR) is based on Federal Trigger Sheet dated January 23, 2011.
    
    
    Administrative Cost:
    *Note all Salary Cost and Non Personal Service Cost are based on 2010 RJM)
    Staff Position Costs for the processing of additional weeks claimed:
    Salary Cost ($41,398 x .90 FTE) $37,258
    Non Personal Service Cost @39.4% $14,680
    Total Cost: $51,938
    
    Support Cost:
    (Procedures, Programming, WEB changes, IVR changes)
    
    Salary Cost ($63,411 X .60 FTE) $38,047
    Non Personal Service Cost @39.4% $14,991
    Total Cost: $53,038
    
    
    Total Personnel Costs $104,976
    
    The only staff cost that would be equated to the TUR is the Administrative Cost for Processing Weeks:
    
    Total Administrative Cost at 4.7%: $51,938
    Total Administrative Cost at 5.5%: $60,779
    Total Administrative Cost at 9.2%: $101,665
    


Memorandum
Person submitting Fiscal Note:
Caren R. Jenkins
Email Address:
Caren.R.Jenkins@wv.gov
    The estimates contain different scenarios based on various unemployment rates. For the Fiscal note detail we will use the most current rate of 9.2%. Based on that the admin. costs for the processing of additional claims would be $101,665 and not $51,938.
    
    NOTE: The US Department of Labor (DOL) must approve this bill in order for us to receive the $22 million. We have submitted this bill to DOL and their approval is still pending. Also, states have a year to implement these laws which could have positive effect on the current low Benefit Trust Fund balance.
    WorkforceWV staff has expressed concern with their ability to implement this Law in a fair and equitable manner, i.e., what documentation is sufficient to prove spouse’s relocation is job related; information on or proof of previous part time work; proof of domestic violence without a court order, etc.