FISCAL NOTE
FUND(S):
Federal Trust Fund
Sources of Revenue:
Other Fund Federal and Trust Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The U.S. Department of Labor will reimburse compliant states for benefits up to August 22, 2015. The U.S. Department of Labor will provide up to $488,063 for administrative and promotional costs. Additionally, the unemployment benefits issued under shared work plans may be offset by less unemployment benefits issued under layoffs.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2014
Increase/Decrease
(use"-") |
2015
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
1,921,762 |
2,042,095 |
| Personal Services |
0 |
285,600 |
345,360 |
| Current Expenses |
0 |
33,204 |
93,777 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
1,602,958 |
1,602,958 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The first year (2015) of implementation will include administrative costs of $159,402 and promotion and enrollment costs of $159,402. These administrative costs will include procedures, programming, WEB changes, IVR changes, training,etc. The promotion and enrollment costs include contacting employees and entering into an agreement for payments of short-term compensation (STC)for their employees. The second year (2016) will also include $159,402 of promotion and enrollment costs for the same activities.
The ongoing costs will include will include processing costs of $52,017 annually and unfunded administrative costs of $227,718 for monitoring, entry of plan, reporting, and program analysis for Federal Government.
The annual benefit payments for this program are estimated to be $1,602,958. The U.S. Department of Labor will reimburse compliant states for benefits up to August 22, 2015.
The benefit cost is based on several studies of other states which indicate a 0.7% share of total regular benefits paid for this program. West Virginia's total regular benefits paid for Federal Fiscal Year 2013 amounted to $228,994,000.
Memorandum
Person submitting Fiscal Note: Brock Jarrett
Email Address: Brock.a.jarrett@wv.gov