Date Requested: January 16, 2015
Time Requested: 10:48 AM
Agency: Auditor, State of WV
CBD Number: Version: Bill Number: Resolution Number:
1767 Introduced HB2066
CBD Subject: State Personnel


FUND(S):

All Funds with Personal Services Expenditures

Sources of Revenue:

General Fund,Special Fund,Other Fund Federal-funded Programs

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


    We believe the total outlays for Annual Increment payments would increase by approximately $15,629,000 under the proposed legislation. In addition, we believe the required employer matching amounts for Social Security and Medicare Taxes would increase by approximately $963,000 and $226,000, respectively. Also, we estimate that required employer matching contributions to State retirement systems would increase by approximately $2,188,000, if the proposed legislation were enacted. Therefore, the total estimated cost to implement the proposed legislation would be $19,006,000



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 19,006,000 19,006,000
Personal Services 0 15,629,000 15,629,000
Current Expenses 0 3,377,000 3,377,000
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):


    Our financial impact estimates are based on a 67% increase in the multiplier used to calculate an employee’s entitlement to Annual Increment from $60 per year of service to $100 per year of service. According to our records, the Annual Increment payrolls paid on or about July 30th in each of the last three fiscal years averaged $23,326,704.21 In response, we have assumed adoption of the legislation would result in a 67% increase in the cost of the Annual Increment payroll and a likewise increase of 67% in each of the matching factors required to be paid by State agency employers.



Memorandum


    



    Person submitting Fiscal Note: Michael E. Sizemore, CPA
    Email Address: Mike.Sizemore@wvsao.gov