Date Requested: February 12, 2015
Time Requested: 01:55 PM
Agency: Workforce WV
CBD Number: Version: Bill Number: Resolution Number:
1146 Introduced HB2093
CBD Subject: Labor


FUND(S):

Unemployment Compensation Trust Fund

Sources of Revenue:

General Fund

Legislation creates:

A New Program



Fiscal Note Summary


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


    The legislation establishes a Short Time Compensation Program. The annual benefits of the program are estimated at $1.6 million annually which would be paid by the state Trust Fund with employer contributions.
    Administrative costs for the first year are estimated at $318,804 with ongoing annual administrative costs of $279,735 for processing and monitoring, reporting and federal analysis for the Federal Government.
    The U. S. Department of Labor will reimburse compliant states for benefits only up to August 22, 2015 and funding applications for administrative costs were due by December 31, 2014.
    As federal grant will not be available for administration of this program, WorkForce West Virginia will request funds from the state to assist with administrative costs.
    



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 1,921,762 1,882,693
Personal Services 0 285,600 232,740
Current Expenses 0 33,204 46,995
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 1,602,958 1,602,958
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    The first year (2016) of implementation will include administrative and promotion costs of $318, 804. These administrative costs will include procedures, programming, WEB changes, IVR changes, training, etc. The promotion and enrollment costs include contacting employers and entering into an agreement for payments of short-time compensation (STC) for their employees. The second year (2017) ongoing administrative costs will be $279,735 for enrollment and reporting activities. The annual benefit payments for this program will be $1,602,958. The benefit cost is based on several studies of other states which indicate a 0.007% share of total benefits paid for this program. West Virginia‚Äôs total regular benefits paid for Federal Fiscal Year 2013 amounted to $228,994,000.
    The U. S. Department of Labor will provide reimbursement to compliant states for benefits up to August 22, 2015 and grant applications for administrative costs were due by December 31, 2014. As the program would not be eligible for federal grants, WorkForce West Virginia will request funds from the State to assist with administrative costs.
    



Memorandum


    



    Person submitting Fiscal Note: Brock Jarrett
    Email Address: brock.a.jarrett@wv.gov