Sources of Revenue:

General Fund

Legislation creates:

A New Fund

Fiscal Note Summary

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

    This bill will increase the costs to state government. The estimated
    increase in costs to the state is approximately $l,209,000 plus
    workers compensation estimated to cost an addtional $24,000, unless
    the workers compensation is waived for these funds.
    Individuals will be required to pay state and federal income taxes
    on the amount they received for the year ($l95.00).

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 408,306 1,233,000 1,233,000
Personal Services 403,000 1,209,000 1,209,000
Current Expenses 8,006 24,000 32,006
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):

    This fiscal note is based on the maximum amount of Servicemembers
    Group Life Insurance of $250,000 at a monthly premium of $16.25 per
    active member in the West Virginia Army and Air National Guard.
    The estimated strength of the Guard to be 6,200 active members. The
    annual cost for FY 2006 and each year there after to be $l,209,000,
    (Computed: 6,200 soldiers X $195.00 premium per year for 250,000
    life insurance = $l,209,000 total per year.)
    For Fiscal Year 2005 - If the bill become effective l March 2005,
    then the cost for four (4) months in FY-05 would be $403,000 based
    on the above computation.
    The cost of workers compenation would be additional $24,000 per
    year. ($l,209,000 divided by l00 = l2,000 X rate of $2.00=$24,000.



    Person submitting Fiscal Note: Frank Hayden
    Email Address: