FISCAL NOTE

Date Requested: February 11, 2020
Time Requested: 12:21 PM
Agency: Auditor, State of WV
CBD Number: Version: Bill Number: Resolution Number:
3082 Introduced HB4856
CBD Subject: Municipalities


FUND(S):

State Funds

Sources of Revenue:

Special Fund

Legislation creates:

Increases Existing Expenses



Fiscal Note Summary


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


The purpose of proposed House Bill 4856 is to establish a system to remediate fiscal emergencies of local governments.



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 0 197,500 197,500
Personal Services 0 167,500 167,500
Current Expenses 0 30,000 30,000
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 State Auditor’s Office would intend to implement the provisions of this legislation, if enacted, through the efforts of the Local Government Services Division supported by the Chief Inspector’s Division and the Transparency Unit. We believe the provisions of the proposed Bill would require the office to add 2.5 additional Full-Time staff members with education and training in the field of accounting and preferably, prior experience in the preparation, audit or monitoring of fiscal budgets in a governmental setting. We anticipate total additional expenditures for salaries for 2.5 Full-Time employees with the requisite education and experience would be $125,000 annually, plus employee fringe benefits totaling $42,500 for a total annual expenditure for pay and fringe benefits of $167,500. In addition, we believe effective implementation of the proposed Bill could require employee travel to visit local governmental units on a fairly regular basis to supplement other monitoring efforts. Accordingly, we would estimate current expenses for employee travel (lodging, meals and mileage) would total about $15,000. Lastly, we believe implementation of the proposed legislation would require additional legal and administrative expenses totaling $15,000 annually.



Memorandum


We have no additional comments concerning proposed House Bill 4856.



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