FISCAL NOTE
Date Requested: January 16, 2024
Time Requested: 10:48 AM |
| Agency: |
Labor, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1971 |
Revised |
SB372 |
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| CBD Subject: |
|
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FUND(S):
Not applicable
Sources of Revenue:
Other Fund Not applicable
Legislation creates:
Creates New Expense, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The Division of Labor does not have access to the information necessary to determine the overall fiscal impact to the state for a paid family leave program for state employees, but the Division has tried to estimate what the agency's administrative costs would be, which is discussed in more detail below.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
21,900 |
87,600 |
87,600 |
| Personal Services |
21,900 |
87,600 |
87,600 |
| 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):
Because the Division of Labor is not currently responsible for administering any other benefit programs for state employees, it is difficult to determine what exactly the agency's administrative costs would be for implementing and administering the paid family leave program. The Division would be able to absorb certain administrative costs, such as those relating to the preparation and distribution of paid family leave claim forms/applications and the drafting of emergency, legislative, and procedural rules, from the Division's current FY 2024 appropriations. However, assuming the program's start date is July 1, 2024, it is likely that the Division would need to hire approximately three additional employees in the last quarter of FY 2024 for training and for the development and administration of the IT infrastructure needed for processing benefit payments. The Division assumed that the Division of Personnel class specifications for such employees would be an Office Assistant III and two Administrative Services Assistant I positions, which would lead to a FY 2024 increase for Personal Services in the amount of $21,900 ($7,300 per month for April, May, and June). The Division assumed that no additional staff beyond the three employees would need to be hired for FY 2025 and FY 2026. The Division based this assumption by estimating the number of total applications for benefits that are required to be processed within seven days to determine an applicant's eligibility. The West Virginia Auditor submitted a Fiscal Note for SB 607 during the 2021 Regular Legislative Session in which it was estimated that there were approximately 400 births and adoptions that occurred per year for state employees, and that all 400 employees would apply for paid leave benefits and be eligible for such benefits. Of the other states who have enacted paid family leave policies for state employees, no information could be found relating to the number of applicants for paid leave benefits per year and a breakdown of eligible versus ineligible applicants. The Division estimated it would receive 200 applications for benefits per year that would be deemed ineligible. Thus, the Division estimated it would receive a total of 600 applications per year. The increase for FY 2025 and FY 2026 Personal Services would be $87,600.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Brooke Farber
Email Address: brooke.m.farber@wv.gov