FISCAL NOTE
FUND(S):
Sources of Revenue:
General Fund,Special Fund,Other Fund Federal, Special, Lottery
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
HB 4144 increases the salaries of state public employees, teachers and service personnel totaling $5,000 per year (which are to be phased in over a three year period, $1,000 the 1st year, additional $2,000 the 2nd year and an additional $2,000 the 3rd year). Assuming the costs are phased in over a three year period, costs are as follows:
Year 1 FY2015 $1,000 raise per employee
For state employees - based on total filled positions as of 1/23/14 of 38,648 and related employee benefits of 22.65%:
General Revenue Costs $ 13,056,093
Special Revenue Costs (includes Road, Lottery, Other)$ 34,345,679
For teachers & service personnel - based on total employed of 38,543 and related employee benefits and school aid formula costs of 36.13%:
General Revenue Costs $ 45,010,369
Local County Board of Ed Costs (includes Road, Lottery, Other)
$ 7,613,283
Grand Total Cost in Year 1 $100,025,424
Year 2 FY2016 additional $2,000 raise per employee
For state employees - based on total filled positions as of 1/23/14 of 38,648 and related employee benefits of 22.65%:
General Revenue Costs $ 39,168,279
Special Revenue Costs (includes Road, Lottery, Other) $103,037,037
For teachers & service personnel - based on total employed of 38,543 and related employee benefits and school aid formula costs of 36.13%:
General Revenue Costs $135,031,187
Local Co Bd of Ed Costs (includes Road, Lottery, Other)$22,839,849
Grand Total Cost in Year 2 $300,076,352
Year 3 FY2017 additional $2,000 raise per employee
For state employees - based on total filled positions as of 1/23/14 of 38,648 and related employee benefits of 22.65%:
General Revenue Costs $ 65,280,465
Special Revenue Costs (includes Road, Lottery, Other) $171,728,395
For teachers & service personnel - based on total employed of 38,543 and related employee benefits and school aid formula costs of 36.13%:
General Revenue Costs $225,052,005
Local Co Bd of Ed Costs (includes Road, Lottery, Other) $38,066,414
Grand Total Cost in Year 3 $500,127,279
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2014
Increase/Decrease
(use"-") |
2015
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
100,025,424 |
500,127,279 |
| Personal Services |
0 |
100,025,424 |
500,127,279 |
| 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):
HB 4144 increases the salaries of state public employees, teachers and service personnel totaling $5,000 per year (which are to be phased in over a three year period, $1,000 the 1st year, additional $2,000 the 2nd year and an additional $2,000 the 3rd year). Assuming the costs are phased in over a three year period, costs are as follows:
Year 1 FY2015 $1,000 raise per employee
For state employees - based on total filled positions as of 1/23/14 of 38,648 and related employee benefits of 22.65%:
General Revenue Costs $ 13,056,093
Special Revenue Costs (includes Road, Lottery, Other)$ 34,345,679
For teachers & service personnel - based on total employed of 38,543 and related employee benefits and school aid formula costs of 36.13%:
General Revenue Costs $ 45,010,369
Local County Board of Ed Costs (includes Road, Lottery, Other)
$ 7,613,283
Grand Total Cost in Year 1 $100,025,424
Year 2 FY2016 additional $2,000 raise per employee
For state employees - based on total filled positions as of 1/23/14 of 38,648 and related employee benefits of 22.65%:
General Revenue Costs $ 39,168,279
Special Revenue Costs (includes Road, Lottery, Other) $103,037,037
For teachers & service personnel - based on total employed of 38,543 and related employee benefits and school aid formula costs of 36.13%:
General Revenue Costs $135,031,187
Local Co Bd of Ed Costs (includes Road, Lottery, Other)$22,839,849
Grand Total Cost in Year 2 $300,076,352
Year 3 FY2017 additional $2,000 raise per employee
For state employees - based on total filled positions as of 1/23/14 of 38,648 and related employee benefits of 22.65%:
General Revenue Costs $ 65,280,465
Special Revenue Costs (includes Road, Lottery, Other) $171,728,395
For teachers & service personnel - based on total employed of 38,543 and related employee benefits and school aid formula costs of 36.13%:
General Revenue Costs $225,052,005
Local Co Bd of Ed Costs (includes Road, Lottery, Other) $38,066,414
Grand Total Cost in Year 3 $500,127,279
Memorandum
The bill states that these salary increases shall be given to employees “On the first, second, and third anniversary of his or her employment date”. This would cause all salary increases associated with this bill to be given at various times during the year. We have assumed, in preparation of this fiscal note, that the salary increases all take effect on July 1 of each year.
The bill also states that salary increases be “Paid in equal monthly installments”. The State currently pays employees on a semi-monthly basis.
The State Police salary schedule is not included in this bill. We have assumed, in preparation of this fiscal note, that raises would also be provided to State Police.
Person submitting Fiscal Note: Mike McKown
Email Address: mike.p.mckown@wv.gov