FISCAL NOTE
Date Requested: January 09, 2020
Time Requested: 03:53 PM |
| Agency: |
Auditor, State of WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1377 |
Introduced |
HB4027 |
|
|---|
| CBD Subject: |
Municipalities |
|---|
|
FUND(S):
Local Government
Sources of Revenue:
Other Fund Local Governments
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of proposed House Bill 4027 is to stop the collection of municipal user fees from State employees.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
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 |
-1,326,000 |
-1,326,000 |
Explanation of above estimates (including long-range effect):
We utilized the capabilities of the wvOASIS Human Resources/Payroll System to ascertain the total amount of Municipal User Fees which had been withheld from the pay of State employees and remitted to various municipalities around the State during the period July 1, 2017 through June 30, 2019 (Fiscal Years 2018 and 2019) and found that amount totaled $2,652,596.50 or about $1.326 Million per year. During this period, the following municipalities received withheld User Fees: Charleston, WV; Fairmont, WV; Huntington, WV; Morgantown, WV; Parkersburg, WV; Romney, WV; and Weirton, WV. In addition, the town of Montgomery, WV began assessing User Fees on December 10, 2019 and the City of Wheeling began assessing User Fees on January 1, 2020. Both of the later-named municipalities were not active for User Fees during Fiscal Years 2018 and 2019.
Memorandum
The elimination of the ability for municipalities to assess and collect Municipal User Fees from State employees will result in a reduction of a revenue stream to these local governments. Accordingly, the affected municipalities, if the legislation is enacted will be required to reduce spending or identify alternative sources of revenue to replace the User Fees previously received.
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov