FISCAL NOTE
FUND(S):
UI Trust Fund
Sources of Revenue:
Other Fund UI Trust Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
According to statistics obtained through the Unemployment Compensation Automated Benefit Payment System, we project that a total of 780 overpayments involving 566 claimants would be established on a yearly basis against reimbursable employers. The total dollar amount equated to these overpayments is $547,820.02 of this amount $165,190.52 is Military/Federal Government Reimbursable Employers and $382,629.50 is all other Reimbursable Employers.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2011
Increase/Decrease
(use"-") |
2012
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
560,571 |
560,571 |
560,571 |
| Personal Services |
12,751 |
12,751 |
12,751 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
547,820 |
547,820 |
547,820 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
In addition to the dollar amounts stated above that will be
immediately withdrawn from the Trust Fund, we will also have additional administrative expenses due to changes in programming and procedures to implement this change in the processing of a reimbursable overpayment. The estimated costs involved in the implementation of this law are as follows:
Programming Costs:
Programmer Hourly rate (Estimate of 100 hrs.) $3,049
(Based on Salary Cost of $63,411)
Non Personal Service Cost @ 39.4% $1,201
Procedural Cost:
Staff Position Cost (estimate of 200 hrs.) $6,098
(Based on Salary Cost of $63,411)
Non Personal Service Cost @39.4% $2,403
Total Administrative Cost to Implement HB 2763: $12,751
Memorandum
Even though this bill would increase the cost to the Trust Fund at a time when the solvency of the fund is in question, WorkForce’s main concern is the legality of using the Trust Fund to reimburse employers that choose not to be a contributory employer. An additional concern is whether this action will interfere with the manner in which the Military handles claims/payments since they are reimbursable employers as well. In view of these issues, we have forwarded this bill to the Department of Labor for a legal opinion.
Person submitting Fiscal Note: Caren R. Jenkins
Email Address: Caren.R.Jenkins@wv.gov