FISCAL NOTE
Date Requested: February 20, 2023
Time Requested: 01:33 PM |
| Agency: |
Administration, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1785 |
Introduced |
SB700 |
|
|---|
| CBD Subject: |
State Personnel |
|---|
|
FUND(S):
General Fund, Special Fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Expense, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The Department of Administration's agencies and Office of the Cabinet Secretary do not have access to the information required to produce the requested fiscal note. Though unable to provide specific cost projections, the department offers the following list of potential costs associated with the bill:
1) Each appointing authority will be required to:
a) Recruit qualified staff to administer human resources (HR) functions. This will result in a duplication of services. Some small agencies have a handful of employees and would not be able to absorb the duties or hire additional staff. Agencies would no longer have the benefit of access to a central resource staffed with long-tenured experts in HR matters.
b) Create an agency-specific recruitment, job posting, applicant tracking, and selection processes to include awarding of veterans' preference points, developing and administering any written examinations, disqualification of applicants and appeal procedures.
c) Create agency-specific policies and forms for HR matters such as job applications, appointment, probationary periods, employee performance management, leave administration, personnel transactions, position classification, compensation, promotion, demotion, disciplinary action, layoff, separation, criminal background checks, etc.
d) Seek enabling legislation and authorization from the West Virginia State Police and Federal Bureau of Investigation to obtain Criminal History Record Information for employment background checks.
e) Develop and provide training to staff currently designed and presented by the Division of Personnel. The training, coaching and consulting is designed to educate HR professionals and provide managers and supervisors with the knowledge and skills needed to comply with HR-related laws and best practices.
2) The State of West Virginia has spent millions of dollars implementing a statewide Enterprise Resource Planning System (ERP) system to achieve uniformity across government pertaining to human resources, payroll, purchasing, budget, etc. Permitting each agency to implement their own appointment, pay, classification, and benefit plans would require extensive system modifications and would defeat the purpose of implementing the system.
3) There is potential for increased costs associated with grievances and/or litigation resulting from a lack of consistency, legality and fairness in processes.
4) Allowing each agency to set employee pay will create further pay inequity within State government as agencies with more funding will pay higher salaries. It is reasonable to expect that the amount paid in salaries will increase dramatically absent a uniform policy or standard establishing compensation ranges and practices.
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 |
0 |
| Personal Services |
0 |
0 |
0 |
| 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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
The Department of Administration is not the appropriate department to complete this fiscal note. Please reassign it to the appropriate agencies or departments.
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.
The following areas of vagueness, technical defects or special issues have been identified:
1) The remainder of the statute and other sections of code include reference to the Division of Personnel (e.g., §5F-2-7, Interdepartmental transfer of permanent state employees; §6C-4-1, et seq., Compensation to state employees for training, education and professional development; and §§ 23-4-1 and 23-5A-4 pertaining to workers' compensation).
2) The Division of Personnel currently has eight (8) legislative rules and twenty-one (21) policies that would need to be amended or repealed.
3) The bill essentially creates a Division of Personnel like entity in each and every state agency to create, monitor and enforce personnel provisions for that agency and that agency alone. This further creates a system of inequities throughout all of state government and the inability for state agencies to work together on any personnel related matters such as transfer, preference hiring after layoff, benefit reciprocity, etc.
4) The Division of Personnel also provides services to local health departments who are required to participate in a merit system as a condition for receipt of federal funding.
5) Not having a centralized process to advertise and recruit would complicate the process for those seeking employment in state government, including those receiving unemployment benefits. Maintaining a central resource to provide a simple application process is recommended. The Division of Personnel also tracks applicants who are disqualified from reemployment after being dismissed from public service.
6) The effective date of July 1, 2023, does not appear to provide sufficient time for agencies or the State Personnel Board to develop the processes mandated by the legislation.
Person submitting Fiscal Note: Joe Thomas
Email Address: joe.f.thomas@wv.gov