FISCAL NOTE
FUND(S):
Voluteer Fire Department Workers' Compensation Premium Subsidy Fund
Sources of Revenue:
Special Fund
Legislation creates:
A New Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
House Bill 3271 provides for the creation of the Volunteer Fire Department Workers'Compensation Premium Subsidy Fund to be administered by the State Auditor. This fund shall be use to defray the cost of workers' compensation insurance premium increases for volunteer fire departments with premium increases beginning with invoices due and payable on or after July 1, 2011.
To qualify, the volunteer fire department must meet the following requirements: (1) the VFD must be in good standing with the State Fire Marshall (2) the VFD must be registered with the Auditor's Office in a form and manner prescribed by the Auditor. (3)the VFD must agree that the subsidy be paid directly to the insurance carrier by the Auditor.
The cost to be incurred by the Auditor's Office include programming personal services costs in the amount of $19,217 and an additional personal services costs of $7,994 for administering the program for the first year for a total personal services cost of $27,211. The cost estimate for year 2 and year 3 would be $9,361 per year for personal services.
The actual cost of progamming has been estimated to be $50,000 over the three year period or $16, 667 per year.
The Auditor's Office does not have the necessary information to estimate the actual cost of the premium subsidy for all the eligible volunteer fire departments. We will defer to the State Tax Department for the premium subsidy cost portion of the program.
In addition, the Auditor's Office does not have necessary information to estimate the cost of the Insurance Commission or the Fire Marshall's office for performing the duties set forth in House Bill 3271.
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 |
0 |
43,878 |
26,028 |
| Personal Services |
0 |
27,211 |
9,361 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
16,667 |
16,667 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The cost estimates stated above were calculated by pro rating the salaries of two programmers for the initial set up of the program and also pro rating the salaries of three additional employees to monitor and actually execute the payments for the workers' compenstion subsidy to the volunteer fire departments.
Memorandum
Person submitting Fiscal Note: Mack E. Parsons
Email Address: mack.parsons@wvsao.gov