Date Requested: February 06, 2015
Time Requested: 02:52 PM
Agency: Auditor, State of WV
CBD Number: Version: Bill Number: Resolution Number:
2737 Introduced SB433
CBD Subject: Salaries


FUND(S):



Sources of Revenue:

General Fund,Special Fund,Other Fund Federal Programs

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


    The proposed legislation, if enacted, would award graduated salary increases to eligible employees as defined in Chapter 5, Article 5 of the West Virginia Code. We believe the term “eligible employee” means those employees who qualified to receive the annual increment payment as authorized in State law. According to our records, the number of State employees who received such annual increment payments in the last three fiscal years totaled 27,552 (2012); 27,353 (2013); and 27,177 in 2014 or an average of 27,361 employees per year. In addition to the increases in graduated salaries for these employees, the legislation would require additional expenditures for both Social Security and Medicare Tax matching by the employing State agency. Lastly, the additional salaries would be subject to matching contributions by State agencies for retirement purposes.



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 33,285,000 166,424,000
Personal Services 0 27,361,000 136,805,000
Current Expenses 0 5,924,000 29,619,000
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):


    We believe the cost of implementing the proposed legislation would total $33,285,000 in Fiscal Year 2016 consisting of $27,361,000 in additional salaries; $2,093,000 in additional employer matching for FICA and Medicare taxes; and, an additional $3,831,000 in employer retirement system contributions. Upon full implementation, the legislation would result in additional salaries of $136,805,000; additional employer matching for FICA and Medicare taxes amounting to $10,466,000; and, additional employer retirement system contributions totaling $19,153,000



Memorandum


    



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