Date Requested:February 21, 2011
Time Requested:11:18 AM
Agency: Legislative Auditor
CBD Number: Version: Bill Number: Resolution Number:
2011R2734 Introduced SB564
CBD Subject: FISCAL DIVISION UNDER JOINT COMMITTEE
FUND(S)
Joint Committee on Government and Finance
Sources of Revenue
General Fund
Legislation creates:
A New Program

Fiscal Note Summary

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

    The bill creates a Fiscal and Policy Division within the Legislative Auditor's Office answerable to the Legislative Auditor, the Joint Committee on Government and Finance, and the Legislature.
    
     The Division may be required to:
     1. Analyze the annual budget prepared by the Executive Branch.
     2. Make continuous and long range studies of projected revenues and expenditures annually publish an official economic outlook for the state.
     3. Provide fiscal notes and analyze legislative proposals for fiscal effect.
     4. Prepare a fiscal note on all bills which, if requested by any legislator, is expected to have a reasonable impact on the revenues or expenditures of the state budget.
     5. Develop and maintain a comprehensive information system on the receipt of revenues by local governmental subdivisions and political subdivisions from local, state and federal sources, as well as the expenditure of these revenues and to submit a summary of this information annually to the Legislature.
     6. Make available to the general public revenue, expenditure and public policy information in a manner which allows the taxpayer to have confidence in the operations of state government.
    
     The creation of the Division will increase the expenses of the Joint Committee on Government and Finance by $720,680 annually, and estimated start-up costs of $60,000.

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 0 780,680 720,680
Personal Services 0 678,300 678,300
Current Expenses 0 83,000 23,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 19,380 19,380
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
     Creation of the Fiscal and Policy Division would require the hiring of new staff and furnishing office space. It is estimated that 10 new staff would be hired, including a director, administrative assistant, an actuary, and 7 fiscal/policy analysts. Estimates for new staff are as follows (benefits are calculated as 33% of salary):
    
    
    Director: Salary - $75,000 Benefits - $24,750 Total - $99,750
    Admin. Asst: Salary - $25,000 Benefits - $8,250 Total - $33,250
    Actuary: Salary - $130,000 Benefits - $42,900 Total - $172,900
    Fiscal Analyst: Salary - $40,000 Benefits -$13,200 Total -$53,200 * 7
    
     Total Personal Services and Benefits - $678,300
    
     Start-up costs may include renovating new office space, purchasing new office furniture, and recruiting new employees. The estimate for office furniture is based on the Office of Legislative Information's purchase of new office furniture for 10 employees. For recruiting costs, it is anticipated that a search for an actuary may take up the bulk of these expenses.
    
     Estimated start-up costs
    
     Office Renovations $10,000
     New furniture $30,000
     Recruiting $10,000
     New computers $10,000
    
     Total $60,000
    
     Annual current expenses include supplies, postage, etc, and travel for annual training for all employees with the exception of the administrative assistant. Office expenses are based on Joint Committee expenses for similar offices.
     Estimated annual current expenses
    
     Office expenses $5,000
     Travel/training $18,000
     Total $23,000
    
     Annual OPEB payments are calculated at 3.8% of personal services. This is included in the "other" column in the Fiscal Note Detail.
    
     OPEB paygo $19,380
    
     Total first year expenses including start-up costs are $780,680.
    
     Annual estimated expenses are $720,680.


Memorandum
Person submitting Fiscal Note:
Denny Rhodes
Email Address:
perd@mail.wvnet.edu
    The fiscal note does not calculate any expenses that would arise from an agency having to be relocated from the Capitol in order to create office space for the Fiscal and Policy Division. Thus, loss of rental income to the Department of Administration nor any added expenses for relocating a state agency are included.
    
    Currently, the Department of Administration charges $9.50 per square foot annually. Thus, the Department could lose some revenue based on the amount of square footage that is taken over by the Fiscal and Policy Division.