FISCAL NOTE

Date Requested: February 12, 2018
Time Requested: 01:50 PM
Agency: Auditor, State of WV
CBD Number: Version: Bill Number: Resolution Number:
1354 Introduced HB4498
CBD Subject: Municipalities


FUND(S):

Local Governments

Sources of Revenue:

Other Fund Local Government Funds - User Fees

Legislation creates:

Decreases Existing Revenue, Decreases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The purpose of proposed House Bill 4498 is to stop the collection of municipal user fees from State Officers and State employees.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 -2,705,300 -2,705,300
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 -2,705,300 -2,705,300
2. Estimated Total Revenues 0 -2,705,300 -2,705,300


Explanation of above estimates (including long-range effect):


    In order to evaluate the potential financial impacts on municipalities around West Virginia, currently totaling less than 10 municipalities, who have instituted User Fees and for which User Fees are being withheld and remitted by the State Auditor on behalf of these municipalities, we obtained information from the wvOASIS HRM/Payroll System and the now-decommissioned EPICS Payroll System. According to the records available to us, the total amount of municipal user fees withheld from the wages of all State officers and employees during Calendar Year 2017 (1/1/2017 – 12/31/2017) amounted to at least $2,705,300.
    
    Our projection of impacts on estimated revenues and expenditures have been made under the assumption that the elimination of the collection of these components of the municipal user fee base will directly result in a decrease in expenditures equal to the reduction in collected revenues. Of course, affected municipalities might elect to amend other fee structures in order to offset revenue losses resulting from adoption of the proposed Bill and we are unable to predict with any reasonable accuracy how the affected municipalities would react to the adoption of the proposed legislation. Hence, we estimate that both total revenues and total expenditures would decline by $2,705,300 on a State-wide basis.
    



Memorandum


    We have no additional comments with respect to the proposed legislation.



    Person submitting Fiscal Note: Michael E. Sizemore, CPA
    Email Address: Mike.Sizemore@wvsao.gov