Date Requested: May 30, 2017
Time Requested: 03:49 PM
Agency: ERP (Enterprise Resource Planning Board)
CBD Number: Version: Bill Number: Resolution Number:
4016 Comm. Sub. HB106
CBD Subject: Governor -- Bills Requested By, Legislature, State Personnel


FUND(S):

Multiple

Sources of Revenue:

Other Fund Possibly all four Fund Types

Legislation creates:





Fiscal Note Summary


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


    Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
    SUMMARY:
    
    On behalf of the Enterprise Resource Planning Board (“ERP”) the following is provided with respect to the Committee Substitute for House Bill 106 which establishes a furlough and emergency appropriation structure for payment of essential services and personnel in the absence of a FY2017-2018 budget by July 1.
    
    • The fiscal impact and costs, both short-term and long-term, are speculative and unknown as there is no prior experience or guideline governing the absence of a budget. Further, the number of services and personnel deemed essential versus those that will have to be furloughed is unknown and dependent upon available monies.
    
    • The existing costs associated with operation and maintenance of the wvOASIS system is approximately $300,000 a week. This cost does not include related staffing from other offices associated with system, including notably the Auditor’s and Treasurer’s offices. As proposed in the legislation, the wvOASIS system would continue its operations in order to make payments for essential services and personnel. However, whether incremental costs to these existing costs may be necessary is speculative and unknown at this time. Potential costs would be dependent on the implementation of program changes to address manual changes in payment between those deemed essential versus those furloughed. If current systems are unable to handle the manual changes by state agency’s addressing designations of essential personnel versus furloughed employees, then there may be service, consulting and programming costs associated with creation and implementation of new/corrective computer programming to address the changes.
    
    • As proposed, the bill would require each state agency and Constitutional office to make recommendations as to personnel and services. Those changes would necessitate manual changes to each state employee’s electronic record by the entity’s human resource personnel to effectuate payment of essential services and personnel. The manual changes will necessitate a significant amount of additional employee time that would create additional cost to the respective entity.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
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):


    Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
    
    Explanation:
    
    With respect to the ERP, the existing costs will continue under this proposed legislation. However, additional costs above these existing costs is speculative and unknown at this time.
    



Memorandum


    Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
    MEMORANDUM:
    
    The proposed legislation establishes a structure for the payment of expenditures by the Auditor and Treasurer under an emergency appropriation. The Committee Substitute is limited to those situations in which there is no budget in effect as of July 1 of a fiscal year, and provides for the payment “from existing funds and sources of revenue.” The legislation additionally provides for the Auditor “to continue to make such payments and the Treasurer shall fund such warrants as they believe to be necessary for the maintenance of public health, safety and order, and the continued fiscal stability and efficient operation of the government of the state.” With respect to the warrants, the proposed legislation provides for recommendations to be provided as to personnel that are deemed essential and those that may have to be furloughed.
    
    If an employee is furloughed, the employee’s agency/Constitutional office will be required to make manual changes to each employee’s electronic record. These manual changes may include changes from “exception pay” and those matters relating to insurance premiums and other personnel matters. While the current systems provide for these manual changes, the time necessary to make such changes is dependent upon staffing resources and size of each agency to effectuate such changes. Further, it may also be necessary for the agency/office to make manual changes for those employees deemed essential (e.g. an essential employee may need to be paid from a different designated account).
    
    As for the ERP, the wvOASIS system is programmed for these manual changes. What is unknown is its ability to handle/account for the numerous manual changes and account changes. Hence, there may be a necessity for a new program to be written and implemented to address the changes if the current system is unable to handle or account for the numerous manual changes. Hence, any potential effect on costs and revenues is speculative and unknown at this time.
    
    Overall, the fiscal impact and costs, both short-term and long-term, are speculative and unknown as there is no prior experience or guideline governing the absence of a budget. Further, the number of services and personnel deemed essential versus those that will have to be furloughed is unknown and dependent upon available monies.



    Person submitting Fiscal Note: Charles Perdue / Marty Wright / Danny Thompson
    Email Address: charles.perdue@wvsao.gov