FISCAL NOTE
FUND(S):
Sources of Revenue:
General Fund,Special Fund,Other Fund Federal
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to provide salary increases for state employees based on residential housing prices. The annual increases are two percent of the employee’s regular salary for every ten percent that residential home prices in the employee’s home county exceed the statewide average for residential homes.
Based on 2000 census data on residential housing values for West Virginia and its counties, the median residential housing values in fifteen counties exceeded the statewide median residential housing value of $72,800. Of those fifteen counties, the median residential housing values of six exceeded the statewide median residential housing value by at least ten percent. Using information on state salaries paid by county from the Bureau of Employment Programs publication West Virginia Employment and Wages - Third Quarter 2004, it is estimated that the proposed legislation would cost $37,538,292 for the first year (FY2006) and $39,528,524 for the second year. Please note that since this is an annual increase, the increase for each subsequent year builds on the previous year’s increase. This also assumes that the relationship of county residential housing values to the statewide median residential housing value will remain constant.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2005
Increase/Decrease
(use"-") |
2006
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
37,538,292 |
39,528,524 |
| Personal Services |
0 |
31,281,910 |
32,927,260 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
6,256,382 |
6,601,264 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The above estimate is based on the following data and assumptions.
▸ Information on residential housing costs was obtained from U.S. Census Bureau data, General Population and Housing Characteristics: 2000.
▸ Information on state wages paid by county was obtained from West Virginia Bureau of Employment Programs data, West Virginia Employment and Wages - Third Quarter 2004.
▸The proposed legislation calls for the increases to be given to employee with three or more years of service. Detailed salary information relative to years of service was not available by county. Consequently, this estimate includes state wages paid by county for all employees.
▸ Benefits include 9.5% retirement, 7.65% Social Security and Medicare, and 2.85% Workers’ Compensation for a total of 20%.
▸Since this is an annual increase, the increase for each subsequent year builds on the previous year’s increase.
Memorandum
Person submitting Fiscal Note: Donna Lipscomb
Email Address: dlipscomb@wvadmin.gov