FISCAL NOTE

Date Requested: February 15, 2017
Time Requested: 01:58 PM
Agency: Auditor, State of WV
CBD Number: Version: Bill Number: Resolution Number:
1715 Introduced HB2485
CBD Subject: Legislature


FUND(S):

GENERAL REVENUE; SPECIAL REVENUE

Sources of Revenue:

General Fund,Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


The provisions of the proposed legislation would amend Chapter 4, Article 2A, Section 2 of the West Virginia Code for the purpose of mandating a salary reduction of five (5) percent for each member of the West Virginia State Senate and the West Virginia House of Delegates. Further, the proposed legislation would amend Chapter 6, Article 7, Section 2 of the West Virginia for the purpose of mandating a salary reduction of five (5) percent for each Constitutional officer and a number of State Department heads whose salaries are set in the referenced Code citation.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 -303,000 -466,000
Personal Services 0 -233,000 -358,500
Current Expenses 0 -70,000 -107,500
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


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


While it is not possible without a lengthy and time-prohibitive review of the classification of all State officials and employees to identify every individual who might be impacted by the proposed legislation, we believe that we have been successful in identifying the vast majority of impacted individuals and we are confident that the calculated potential cost savings reflected in this Fiscal Note request response are a reliable and conservative estimate of the amounts achievable. As implementation of the proposed legislation which would not occur until January 1, 2018. We believe that Fiscal Year 2019 would be the first budgetary year which would realize the full cost savings of approximately $466,000. Our review indicates the total salaries of the impacted State officials and employees on an annual basis are currently approximately $7,526,500 and related fringe benefits are currently about $2,258,000. Our work indicates upon full implementation, the total salaries of the impacted State officials and employees on an annual basis would decline to approximately $7,168,000 or a savings of $358,500 and the related fringe benefits would decline to about $2,150,500 or a savings of $107,500. Accordingly, the total savings through legislative implementation are estimated at a minimum of $466,000. All salary reductions authorized by the proposed legislation would commence on January 1, 2018 and estimate if enacted, the State would achieve approximately 65% of the cost savings at full implementation during Fiscal Year 2018.



Memorandum






    Person submitting Fiscal Note: Michael E. Sizemore, CPA
    Email Address: Mike.Sizemore@wvsao.gov