FISCAL NOTE
Date Requested: February 17, 2025
Time Requested: 03:57 PM |
| Agency: |
Auditor, State of WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1566 |
Introduced |
HB2497 |
|
|---|
| CBD Subject: |
State Personnel; Uniform Laws |
|---|
|
FUND(S):
State Funds and Local Government Funds
Sources of Revenue:
Other Fund Impacts All State Fund Types and Including County Boards of Education at the Local Level
Legislation creates:
Creates New Expense, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of proposed House Bill 2497 is to mandate the implementation of a Locality Pay Adjustment on July 1, 2027 for executive branch agencies, the State Police and county boards of education. The Bill sets out the terms of eligibility and further provides that no private cause of action or right to grievance shall arise resulting from enactment or operation of the Policy mandated by the Bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
We do not have the records necessary to fully identify both the State employees and employees of specific local county boards of education whose compensation would be impacted if the Bill were to become law. Currently, the Locality Pay Areas as defined by the U.S. Office of Personnel Management which impact West Virginia are as follows: 1. Pittsburgh, PA-New Castle, OH-Weirton, WV which includes Brooke, Hancock, Marshall and Ohio counties with a locality pay adjustment of 21.03% and 2. Washington, D.C-Baltimore, MD-Arlington, VA which includes Berkeley, Hampshire, Hardy, Jefferson, Mineral and Morgan counties with a locality pay adjustment of 33.94%. In addition, the provisions of the Bill would not impact compensation for affected employees headquartered within the regions set out earlier until July 1, 2027, the start of Fiscal Year 2028 meaning any changes in compensation occurring in the interim would be impactful upon implementation.
Memorandum
We would recommend the Legislature examine any Fiscal Note Submission Responses filed by the West Virginia Division of Personnel and the State Department of Education with respect to the proposed legislation. While we do not have a detailed, itemized estimate pertaining to cost implementation of the proposed legislation, it is conceivable the amount could be in the several tens of millions of dollars.
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov