FISCAL NOTE
Date Requested: January 16, 2015 Time Requested: 10:48 AM |
Agency: |
Auditor, State of WV |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1767 |
Introduced |
HB2066 |
|
CBD Subject: |
State Personnel |
---|
|
FUND(S):
All Funds with Personal Services Expenditures
Sources of Revenue:
General Fund,Special Fund,Other Fund Federal-funded Programs
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
We believe the total outlays for Annual Increment payments would increase by approximately $15,629,000 under the proposed legislation. In addition, we believe the required employer matching amounts for Social Security and Medicare Taxes would increase by approximately $963,000 and $226,000, respectively. Also, we estimate that required employer matching contributions to State retirement systems would increase by approximately $2,188,000, if the proposed legislation were enacted. Therefore, the total estimated cost to implement the proposed legislation would be $19,006,000
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2015 Increase/Decrease (use"-") |
2016 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
19,006,000 |
19,006,000 |
Personal Services |
0 |
15,629,000 |
15,629,000 |
Current Expenses |
0 |
3,377,000 |
3,377,000 |
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):
Our financial impact estimates are based on a 67% increase in the multiplier used to calculate an employee’s entitlement to Annual Increment from $60 per year of service to $100 per year of service. According to our records, the Annual Increment payrolls paid on or about July 30th in each of the last three fiscal years averaged $23,326,704.21 In response, we have assumed adoption of the legislation would result in a 67% increase in the cost of the Annual Increment payroll and a likewise increase of 67% in each of the matching factors required to be paid by State agency employers.
Memorandum
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov