|Date Requested:February 19, 2013
Time Requested:12:52 PM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| The proposed legislation clarifies the various terms used in existing law and appears to make that clarifying language retroactive to workers’ compensation premium subsidy claims since July 1, 2011. Therefore, it raises the possibility upon passage for volunteer fire companies to resubmit claims for workers’ compensation premium subsidy for other emergency services previously not covered for Fiscal Years 2012 and 2013. Our office estimates a potential payout of $475,000 for claims of these types. Also, the Office of the West Virginia Insurance Commissioner has estimated $600,000 in additional premium subsidy claims, if the clarifying legislation provisions should apply only to claims likely to be submitted during Fiscal Year 2014 and we believe this cost estimate to be reliable.
In addition, the subsidy payout experience has increased since October 1, 2012 from an annualized $1.9 Million to an annualized $2.6 Million. The State Auditor’s Office now estimates a funding shortfall in the existing legislation through June 30, 2014 which will approximate $1.5 Million. Lastly, required audits of the initial premium calculations are now expected to add at least $400,000 to the cost of the existing program. Collectively, we estimate the costs of the proposed legislation, inclusive of the additional funding needs to carry the program through June 30, 2014 will require $2,975,000 in additional funding.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):