FISCAL NOTE
Date Requested: February 17, 2025
Time Requested: 03:54 PM |
| Agency: |
Natural Resources, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1566 |
Introduced |
HB2497 |
|
|---|
| CBD Subject: |
State Personnel; Uniform Laws |
|---|
|
FUND(S):
3200, 3204, 3232, 3233, 3265, 8707
Sources of Revenue:
Special Fund
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to mandate executive branch agencies, the State Police, and county boards of education implement a Locality Pay adjustment on July 1, 2027. The bill sets out the terms of eligibility. The bill further provides that no private cause of action or right to grievance shall arise as a result of enactment or operation of this policy.
Based on the number of employees currently employed in the targeted areas, this measure will have a significant impact on General, Federal, Lottery, and Special Revenue funding.
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 |
4,610,514 |
| Personal Services |
0 |
0 |
4,610,514 |
| 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):
Increases in personal services and current expenses are based on the 2025 General Schedule (GS) Pay Tables (OPM):
Locality Pay Area of Washington-Baltimore-Arlington, DC-MD-WV-PA increase of 33.94% and
Locality Pay Area of Pittsburgh-New Castle-Weirton, PA-OH-WV increase of 21.03%
Calculations are based on current salaries for employees working in the counties and adjusted by the percentages identified on the pay tables that include West Virginia.
It should be noted that adjustments (increases) are made every year to the General Schedule (GS) Pay Tables for locality pay and the figures provided above are likely to increase another 2.22% by the proposed implementation date of July 1, 2027 and could fluctuate (increase) every year following implementation.
Based on these Locality Pay Area increases, $2,484,850 in personal services plus $1,929,305 in benefits would cost the agency approximately $4,414,155 in additional expenses in Fiscal Year 2025.
Locality pay is assumed to increase approximately 2.22% by the proposed implementation date of 07/2027.
FY 2026
Personal Services: $2,484,850 x 2.22% = $2,539,517
Benefits: $1,929,305 x 2.22% = $1,971,750
Total: $4,511,266
FY 2027
Personal Services: $2,539,517 x 2.22% = $2,595,386
Benefits: $1,971,750 x 2.22% = $2,015,128
Total: $4,610,514
There is no provision in this bill for General Revenue or Lottery funds to offset these costs. The direct result would be for the agency to reduce spending in other areas, causing a severe drain on other operational budgets that are already burdened by rising costs in PEIA, utilities, telecommunications, energy expenses and repairs and maintenance.
Additionally, this bill has the potential to create pay inequities among the various employees across the State. It will also inadvertently shift staffing issues between our locations. Employees who live near areas deemed eligible for locality pay may leave their current location to try and capture the additional salary differential. This proposal would create an inequity between rural and urban parts of the state and does not solve any recruiting or retention challenges.
Memorandum
For additional information concerning this fiscal note, please contact:
Andrea Fout-Tinsley
andrea.l.fouttinsley@wv.gov
13045584025
Person submitting Fiscal Note: Amanda Morris
Email Address: amanda.l.morris@wv.gov