FISCAL NOTE
Date Requested: January 16, 2015
Time Requested: 10:42 AM |
| Agency: |
Alcohol Beverage Control Administration |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1754 |
Introduced |
HB2069 |
|
|---|
| CBD Subject: |
Alcoholic Liquors and Beers |
|---|
|
FUND(S):
general
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill is the same as HB 3057 submitted in the 2012 Regular session and HB 2097 in the 2013 regular session.
As provided by the Department of Revenue and the WVABCA:
This bill raises only salaries and benefits for WVABCA Enforcement Inspectors, Agents and Supervisors. The bill also creates at the West Virginia Alcohol Beverage Control Administration (WVABCA) a career development process, a training manual, evaluation and testing procedures, a WVABCA Enforcement “only” specific pay scale and a special annual “length of service award” salary enhancement (which is in addition to the state increment for all state employees). The bill does not state what the career development process is, what should be in a training manual or what are the evaluation and testing procedures.
This bill will increase the WVABCA's budget for salaries and salary enhancements ($400 per year of service) paid to Enforcement Inspectors, Agents and Supervisors as noted in the pay scale included in the bill. The bill does not note the corresponding increase in benefits paid to the Enforcement Inspectors, Agents and Supervisors receiving the pay raise.
The WVABCA is a special revenue agency, therefore general revenue transfers would likely be reduced to account for salaries and benefits proposed to be paid to Enforcement Inspectors, Agents and Supervisors.
The bill's annual length of service award is an annual salary enhancement based on $400 for each year of service upon completion of 2 years of service. This $400 amount would increase annually in perpetuity as each Inspector, Agent and Supervisor’s years of service increases until retirement. Again this would significantly impact the WVABCA's general revenue transfers.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2015
Increase/Decrease
(use"-") |
2016
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
449,956 |
910,952 |
910,952 |
| Personal Services |
449,956 |
910,952 |
910,952 |
| 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):
* The numerical data is from the **2013 fiscal note** and its projected numbers, and further only notes the potential salary and benefits data which has been provided by the WVABCA Personnel Department:
Additional revenue would be spent on Personal Services which would increase to account for increased salaries and benefits (insurance federal tax issues, health costs, retirement and etc.) for only WVABCA Enforcement Inspectors, Agents and Supervisors.
Personal services would need to be increased by varying amounts in future years beyond 2015 to account for the annual salary enhancement/length of service award for only for WVABCA Enforcement Inspectors, Agents and Supervisors.
WVABCA Budgeted position impact (the ½ FY 2014 impact would be roughly estimated at half of 2014 or $449,956), these numbers do not include any new hires or retirements
FY 2014 = $899,912.52
FY 2015 = $910,952.52
FY 2016 = $921,992.52
FY 2017 = $933,032.52
FY 2018 = $944,072.52
Total 5.5 year costs = $5,054,398.86
All these 2013 numbers assume no new hires and no changes to retirement and federal withholding requirements.
Memorandum
As provided by the Department of Revenue and WVABCA:
The bill will have a fiscal impact by increasing WVABCA’s budget for salaries and benefits.
The WV Division of Personnel (“DOP”) is currently conducting a comprehensive classification and compensation review of all state agencies that is potentially undermined by singling out these particular classifications of employees at a single agency for unique treatment in this bill. Another course of action would be to await the final results of DOP’s review and recommendations before codifying classifications and salaries.
The employee classifications specified in this bill are not unique to the WVABCA and its enforcement division. Other agencies across state government have similar positions with the same or similar function. To address only one class of employee at one agency could create certain inequities.
The bill is contrary to the fair and equitable classification process and creates the potential for grievances among similarly classified employees who are not included within the bill’s limited reach. Such an arrangement may create two pay scales – one for WVABCA Enforcement and another for the rest of state government.
In 2015, the bill would impact 25 employees in the WVABCA Enforcement Division while other administrative employees in the Enforcement Division would not be eligible as well as other WVABCA employees (approximately 56).
Technical Concerns:
Th bill is technically placed in the wrong code since it covers personnel issues it should be in the WV DOP’s code sections. (See W.Va. Code §5-5-1 et seq. – Salary Increases for State Employees).
The bill is not clear if the bill covers both current exempt and civil service employees.
The bill creates an annual salary enhancement (length of service award of $400/year for each year of service applied retroactively) similar to the state employees’ annual increment for WVABCA Enforcement Employees only. The statutory language authorizing such an enhancement may not be correct (See W.Va. Code §5-5-2 - Increment).
The bill fixes the salary and salary enhancements of Enforcement Inspectors and Agents. Any future salary increases or salary enhancements would need to be specifically granted and amended into statute otherwise the Enforcement Employees would not benefit.
The bill is not clear as to whether the Enforcement Employees would continue to receive the annual state employees’ increment and also any future proposed salary enhancement/length of service award.
The bill states that the evaluation and testing of Enforcement Employees is for advancement but does not prohibit demotion or firing for failure to pass or complete certain evaluation and testing nor does it permit any merit based promotion or salary increase.
Person submitting Fiscal Note: Anoop Bhasin on behalf of WVABCA
Email Address: Anoop.K.Bhasin@wv.gov