FISCAL NOTE

Date Requested: January 14, 2016
Time Requested: 11:00 AM
Agency: Auditor, State of WV
CBD Number: Version: Bill Number: Resolution Number:
1183 Introduced SB115
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 27,353 (2013); 27,177 (2014); and 26,913 in 2015 or an average of 27,147 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
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 33,160,060 165,800,302
Personal Services 0 27,147,000 135,735,000
Current Expenses 0 6,013,060 30,065,302
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 $33,160,000 in Fiscal Year 2017 consisting of $27,147,000 in additional salaries; $2,076,745 in additional employer matching for FICA and Medicare taxes; and, an additional $3,963,315 in employer retirement system contributions. Upon full implementation, the legislation would result in additional costs of $165,800,302 annually made up of additional salaries of $135,735,000; additional employer matching for FICA and Medicare taxes amounting to $10,383,727; and, additional employer retirement system contributions totaling $19,681,575



Memorandum


    



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