FISCAL NOTE

Date Requested: March 10, 2021
Time Requested: 12:23 PM
Agency: Auditor, State of WV
CBD Number: Version: Bill Number: Resolution Number:
3091 Introduced SB607
CBD Subject: Labor


FUND(S):

State Funds; Local Funds

Sources of Revenue:

Other Fund General Fund; Special Funds; and, Local Government - County Boards of Education

Legislation creates:

Creates New Expense



Fiscal Note Summary


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


The purpose of proposed Senate Bill 607 is to provide paid or unpaid family leave time a total of 12 weeks under the Parental Leave Act based on at least 12 consecutive months of performing services for remuneration within the State of West Virginia for any department, division, board, bureau, agency, commission, or other unit of state government, or any county board of education.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 5,310,000 5,310,000
Personal Services 0 5,310,000 5,310,000
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):


In order to estimate the fiscal impacts of the proposed Bill, we separated the population of all affected employees into two groups: State employees and County Boards of Education employees. As the total number of births and adoptions according to the West Virginia Public Employees Insurance Agency approximate 800 per year, we assumed the births and adoptions were roughly equally divided between State employees and County Boards of Education employees or about 400 births and adoptions for each group. With respect to State employees, we further made an assumption that affected employees would only use 50% of the 12 weeks of paid leave available to them under the proposed Bill or approximately 240 hours of paid leave. We also assumed the average employee salary would be $22.00 per hour, exclusive of employee fringe benefits. The following analyses reflect the most likely outcomes based on the analyses that we conducted. State Employees: Maternity Factor: (400 Births and Adoptions * 240 Hours of Paid Leave) * $22.00 Per Hour = $2,110,000 Employee Fringe Benefit Factor: $2,110,000 * .31 = $654,000 Accordingly, we estimate the costs of implementation for State employees would total approximately $2,800,000 ($2,110,000 plus $654,000) per fiscal year. County Board of Education Employees – School Aid Formula Estimated Costs We assume the number of births and adoptions contemplated by the proposed Bill would approximate 400 for County Boards of Education employees. We further made the assumption that affected employees would only use 50% of the 12 weeks of paid leave available to them under the proposed Bill or approximately 30 paid days and the average daily costs for salaries and fringe benefits would be approximately $209.00 per day for each affected employee. We assume these costs for Steps 1, 2, 3, 5, 6a and 6b would total approximately $2,510,000 per fiscal year in relation to the School Aid Formula Only.



Memorandum


Total Estimated Costs For Implementation: We believe the total estimated costs for implementation of the proposed Bill for State employees and County Board of Education employees (in the School Aid Formula) would be approximately $5,310,000 ($2,800,000 plus $2,510,000) per fiscal year.



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