FISCAL NOTE



FUND(S):

Unemployment Compensation Trust Fund

Sources of Revenue:

Other Fund UC Trust Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


Implementation of this bill would incur initial statt up costs of $32,824 and ongoing costs of $66,142; $68,126; and $70,170 respecitively for the first three years. This estimate is based upon 1% of claimants being tested for drugs. Due to the short time frame, information is not available to estimate costs saved in benefits. However, since benefits paid by the State are for 26 weeks only and the time frame for processing claims, testing, rebuttals, decisions, and appeals is substantial, savings in benefits paid may be minimal.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2009
Increase/Decrease
(use"-")
2010
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 98,966 68,127 70,171
Personal Services 48,122 26,057 26,839
Current Expenses 41,560 32,507 33,482
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 9,284 9,563 9,850
2. Estimated Total Revenues 0 0 0


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


Start up costs for the first year include .17 FTE for programming and .17 FTE for developing and testing policy and procedures for drug testing, training and etc. Out of the total cost for the first year, $32,824 if for start up costs. The ongoing costs are based on 1% of claimants being tested for drugs: total annual claimants to be tested are 789. Ongoing costs for first year are $66,142 and increase by 3% each year.



Memorandum


Due to the short time frame, information is not available to estimate costs saved in benefits. However, since benefits paid by the State are for 26 weeks only and the time frame for processing claims, testing, rebuttals, decisions, and appeals is substantial, savings in benefits paid may be minimal.



    Person submitting Fiscal Note: Caren Jenkins
    Email Address: cjenkins@workforcewv.org