FISCAL NOTE

Date Requested: January 10, 2020
Time Requested: 10:01 AM
Agency: Health and Human Resources, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1191 Introduced SB137
CBD Subject:


FUND(S):

0407 - CENTRAL OFFICE GENERAL ADMINISTRATIVE FUND

Sources of Revenue:

Other Fund N/A

Legislation creates:





Fiscal Note Summary


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


    The purpose of this bill is to require the Legislature to provide funds to Department of Health and Human Resources to provide local boards of health funds for pay raises for employees when the Legislature provides funds for across-the-board pay raises for state employees. It limits the Department of Health and Human Resources from using the funds for any other purpose. It also prohibits the Department of Health and Human Resources from placing additional restrictions or obligations on provided funds.
    For the purpose of preparing this fiscal note, the Department assumes that if this legislation passes, it will become effective on July 1, 2020 and the Legislature will appropriate additional funds to cover LHD employee pay raises for the Department's State Aid for Local and Basic Public Health Services general revenue appropriation (18400) for FY2021 and ongoing fiscal years for the purpose of the Department distributing the additional funds to LHDs through State Aid disbursements.
    The Department estimates the fiscal impact of a 5% increase would be $961,301 for FY2021 and ongoing.



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 0 961,301 961,301
Personal Services 0 961,301 961,301
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):


    Although the Department does not have access to the most recent data related to LHD employee salaries, a report provided to the Department by the Association for Local Health Departments in 2019 reflects that LHD employee salaries totaled $16,341,712 with fringe and employee benefits (Social Security, Medicare, and Retirement) being $2,884,312 for a total of $19,226,024. Based on this report, the Department estimates that $961,301 ($19,226,024 x 5%) will be needed for FY2020 and ongoing fiscal years to cover an across-the-board 5% pay increase for LHD employees.



Memorandum


    Legislative Rule 64CSR67, Section 4.2 requires the Department to distribute state allocated funds for basic public health services to LHDs through an established formula. It also allows the Department to withhold no more than 2% of the funds, prior to applying the formula, for use in emergencies and subtract no more than 4.7% of the total funds appropriated by the Legislature to be retained by the Department for state support of LHDs. If SB137 passes and additional general revenue 18400 funds are appropriated to cover the costs of this legislation, the Department suggests that language be added to the FY2021 budget bill stipulating the amount of 18400 funding appropriated for the sole purpose of providing pay raises for LHD employees to ensure the established formula and funds the Department retains for emergencies and state support are calculated correctly.



    Person submitting Fiscal Note: Bill J. Crouch
    Email Address: dhhrbudgetoffice@wv.gov