FISCAL NOTE
FUND(S):
All State Funds
Sources of Revenue:
General Fund,Special Fund,Other Fund
Legislation creates:
A New Program,A New Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill would allow state agencies and departments to keep fifty percent of their budget surplus in an internal fund for employee bonuses. The average expiration (adjusted) in general revenue over the last eight years is $10.8 million dollars. On February 28, 2013, there were 38,203 full time employees. This would compute to a $114.72 bonus (plus fringe benefits of 23.15%)for all state employees. The fiscal impact to the General Revenue Fund would be an estimated average of $5.4 million per year.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2013
Increase/Decrease
(use"-") |
2014
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
5,400,000 |
5,400,000 |
5,400,000 |
| 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):
The Department of Administration has concerns with the passage of this bill. This would take funding that would normally go to the Rainy Day Fund or funding that would be available for appropriation in the future.
The bill states that fifty percent of the surplus funds would be deposited into an internal fund for use by the agency in awarding bonuses to employees for helping achieve reduced expenditures of state funds. Bonuses are not currently authorized. The Department of Administration does not know how many employees would qualify as it is impossible to know which employees would achieve reduction in expenditures. Additionally, a new internal fund would need to be established for each agency and department and this bill does not establish such funds.
Memorandum
There is already a program in place that allows employees to be rewarded for any suggestions or recommendations they make which saves the state mondy. The program is the Employee Suggestion Award Board. The Board consists of members of the House and Senate as well as state agency representatives. The Board meets monthly during legislative interims.
Person submitting Fiscal Note: Donna Lipscomb
Email Address: donna.m.lipscomb@wv.gov