FISCAL NOTE
Date Requested: January 23, 2023
Time Requested: 04:21 PM |
| Agency: |
Auditor, State of WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1933 |
Introduced |
HB2764 |
|
|---|
| CBD Subject: |
Constitutional Officers |
|---|
|
FUND(S):
State Funds
Sources of Revenue:
General Fund
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of proposed House Bill 2764 is to increase the annual compensation for the Attorney General, Auditor, Secretary of State, Commissioner of Agriculture and the State Treasurer in their roles as Constitutional Officers of the State of West Virginia.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
262,465 |
| Personal Services |
0 |
0 |
262,465 |
| 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):
Our examination of the proposed legislation indicates the total amount of increases in the annual compensation paid to the five named constitutional officers set out in the Bill would total $225,000 each fiscal year upon full implementation of the Bill. Further, based on the current assessment rates for required Social Security and Medicare matching payments for employers, we have calculated those costs to increase by a total of approximately $17,215 each fiscal year upon full implementation of the Bill. Lastly, since the constitutional officers covered by the proposed legislation are all members of the Public Employees’ Retirement System, the $225,000 in additional salary expenses will be required to be funded with an employer-match funded from the State General Revenue Fund. We have utilized the current rate of 9% which would result in an increase in employer retirement matching payments of $20,250 each fiscal year upon full implementation of the Bill. Therefore, we estimate the total costs of the proposed legislation upon full implementation would be approximately $262,465.
Memorandum
It should be noted the provisions of the proposed legislation would not take effect until Calendar Year 2025, effectively the second half of 2025 Fiscal Year commencing on July 1, 2024. Accordingly, the total expenditures required during the initial year of implementation of the proposed Bill (Fiscal Year 2025) would consist of $112,500 for salaries, $8,607 for Social Security and Medicare matching expenditures and $10,125 for Retirement matching expenditures for a total of approximately $131,232.
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov