FISCAL NOTE
Date Requested: March 23, 2017 Time Requested: 09:59 AM |
Agency: |
Insurance Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3331 |
Originating Bill |
HB3108 |
|
CBD Subject: |
|
---|
|
FUND(S):
7162, 7169
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
If enacted, House Bill 3108 will decrease the Worker's Compensation Old Fund revenues by an estimated $35,250,000 during fiscal year 2018.
House Bill 3108 will permit the redirection, by Executive Order, of seventy-five percent (75%) of surcharges and assessments on workers' compensation policies, surcharges from self-insured employers and proceeds derived from net terminal income funds to the General Revenue Fund during fiscal year 2018.
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 |
0 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
-35,250,000 |
0 |
Explanation of above estimates (including long-range effect):
Total Estimated WC Old Fund Revenues FY2018:
Video Lottery $11,000,000
Self-insured Debt Reduction Surcharge $ 9,000,000
Debt Reduction Surcharge* $27,000,000
Total FY2018 Revenues $47,000,000
75% of Revenue Redirected to General Revenue:
Video Lottery $ 8,250,000
Self-Insured Debt Reduction Surcharge $ 6,750,000
Debt Reduction Surcharge $20,250,000
Total Redirected Revenue $35,250,000
* FY2016 debt reduction revenues for fully insured employers yielded $31.6 million, however FY2017 y-t-d revenues show decreased collections, due to a decrease of 14.7% in loss costs for employer premium rates which became effective on Nov. 1, 2016 and due to reduced payroll in some employer classifications.
Memorandum
If enacted, HB3108 will decrease Worker's Compensation Old Fund revenues in fiscal year 2018 by an estimated $35,250,000.
Person submitting Fiscal Note: Melinda Ashworth Kiss
Email Address: Melinda.A.Kiss@wv.gov