|Date Requested: February 12, 2015
Time Requested: 01:55 PM
Unemployment Compensation Trust Fund
Sources of Revenue:
A New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The legislation establishes a Short Time Compensation Program. The annual benefits of the program are estimated at $1.6 million annually which would be paid by the state Trust Fund with employer contributions.
Administrative costs for the first year are estimated at $318,804 with ongoing annual administrative costs of $279,735 for processing and monitoring, reporting and federal analysis for the Federal Government.
The U. S. Department of Labor will reimburse compliant states for benefits only up to August 22, 2015 and funding applications for administrative costs were due by December 31, 2014.
As federal grant will not be available for administration of this program, WorkForce West Virginia will request funds from the state to assist with administrative costs.
Fiscal Note Detail
|Effect of Proposal
|1. Estmated Total Cost
|Repairs and Alterations
|2. Estimated Total Revenues
Explanation of above estimates (including long-range effect):
The first year (2016) of implementation will include administrative and promotion costs of $318, 804. These administrative costs will include procedures, programming, WEB changes, IVR changes, training, etc. The promotion and enrollment costs include contacting employers and entering into an agreement for payments of short-time compensation (STC) for their employees. The second year (2017) ongoing administrative costs will be $279,735 for enrollment and reporting activities. The annual benefit payments for this program will be $1,602,958. The benefit cost is based on several studies of other states which indicate a 0.007% share of total benefits paid for this program. West Virginia’s total regular benefits paid for Federal Fiscal Year 2013 amounted to $228,994,000.
The U. S. Department of Labor will provide reimbursement to compliant states for benefits up to August 22, 2015 and grant applications for administrative costs were due by December 31, 2014. As the program would not be eligible for federal grants, WorkForce West Virginia will request funds from the State to assist with administrative costs.
Person submitting Fiscal Note:
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