Various state funds

Sources of Revenue:

General Fund,Special Fund,Other Fund

Legislation creates:

A New Program

Fiscal Note Summary

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

    This bill allows collective bargaining for state employees. It creates a Labor Relations Board under the Department of Administration, although the Department of Administration has no authority over the board. The board consists of three members. The board is authorized to hire staff. The board shall be represented by the Attorney General’s office. A grievance procedure shall be established for those employees utilizing representation and arbitrators shall settle disputes. Employees not utilizing representation may use the existing grievance procedure. Strikes by employees are prohibited. It is impossible to determine the fiscal impact to the state due to the large number of unknown variables, some of which are mentioned below. However, based upon the informaiton available to the Departmetn of Administration, we estimate the fiscal impact to the State to be $7,026,099.00.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 7,097,174 7,026,099 7,026,099
Personal Services 326,674 326,674 326,674
Current Expenses 78,500 82,425 82,425
Repairs and Alterations 0 0 0
Assets 85,000 10,000 10,000
Other 6,607,000 6,607,000 6,607,000
2. Estimated Total Revenues 0 0 0

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

    Some of the estimated known costs are identified herein but the exact cost to the state with the passage of this bill can not be estimated.
    Expenses for the Labor Relations Board would be a minimum of $3,600.00 as the board shall get $300 per diem. This assumes that they only meet four times a year as required. Additional meetings are allowed so this number would increase accordingly.
    It is unknown what staff would be hired by the board. But it would be reasonable, according to the proposed Legislation, for the board to hire an Executive Director, Executive Assistant, Secretary, Assistant, and two Hearing Examiners. Estimated salaries and benefits for each would be:
    Executive Officer Salary: $70,000.00 Benefits: $21,000
    Executive Assistant Salary: $39,357.00 Benefits: $11,800
    Secretary: Salary: $34,131.00 Benefits: $10,240
    Assistant: Salary: $20,786.00 Benefits: $ 6,235
    Hearing Examiner Salary: $44,400.00 Benefits: $13,320
    Hearing Examiner Salary: $44,400.00 Benefits: $13,320
    Operational expenses would include rent, equipment, supplies, etc. for a staff of six to 10 people. Again it is unknown what the actual costs would be, however, a reasonable estimate would be:
     Rent & operating expenses: $37,500 annually
     (10 people *250 sq ft. per person at $15.00 per sq ft.)
     Furniture: $50,000
     Equipment: 35,000 (computers, copiers, etc.)
     Technology: $3,000
     Communications: $18,000 annually
    The cost of having a dedicated attorney from the Attorney General’s office provide services to the board would cost approximately $91,000.00. This would be for a salary of $70,000 and benefits of $21,000.00.
    The cost of hiring an Arbitrator to settle disputes can not be estimated as it is unknown how many employees would choose to be represented and utilize the new grievance procedure versus the number of employees who would continue to use the current grievance board. According to the WV Public Employees Grievance Board’s 2013 Annual Report, 2,604 grievances were filed at level one in FY 2013. If half of those would be heard by the new grievance procedure (1302) and an arbitrator needed, the cost would be approximately $6,607,000. The current cost of an arbitration runs anywhere from $1,000 per arbitration to $14,000 per arbitration. Non-monitary arbitrations costs are a set charge of $5,000.00 per arbitration. If you would pay $5,000 per arbitration for 1302 grievances, then the cost would be $6,607,000.


    Some of the variables that make it impossible to determine the exact cost to the state with the passage of this bill would be:
    • Unknown how many employees and/or units would elect to participate with collective bargaining and have representation.
    • Unknown how many disputes would be filed.
    • Unknown how many meetings would be required by the Labor Relations Board.
    • Unknown how many hearings would be required and how many hearing examiners would be needed on staff.
    • Unknown how many elections would be needed.
    • Unknown how many actual employees would be hired and at what salaries.
    • Unknown what salaries would be paid as no job requirements such as education and experience set forth. Example, if the hearing officers were required to be licensed attorneys then the salary would be much higher than estimated above.
    • Unknown whether one dedicated attorney from Attorney General’s office would be sufficient to adequately provide services.
    • Unknown as to how many awards and reinstatements with pay the Board would give.
    • Unknown how many cases would go on to the Circuit Court.
    • Unknown how many employees would continue to use the current grievance board.
    • Unknown exactly how large an office would be required as well as how much equipment needed and cost of actual rent.
    Additionally, it would take extensive research of other states who have gone to collective bargaining as to the overall impact on the payroll of state government. Collective bargaining may increase the cost of running government if higher wages and better benefits are negotiated.

    Person submitting Fiscal Note: Donna Lipscomb Spano
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