FISCAL NOTE
Date Requested: January 16, 2019 Time Requested: 09:24 AM |
Agency: |
Legislative Auditor |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1206 |
Introduced |
HB2145 |
|
CBD Subject: |
Finance and Administration |
---|
|
FUND(S):
General Fund
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to establish dates for the processing of paper checks and also authorizes a fee for processing of checks outside the scheduled dates. This would affect the Legislature by creating a new expense for the processing of these checks at the cost of $50 per check for processing check requests in accordance with the proposed processing dates and $100 per check for those processed outside of those proposed processing dates. The potential new expense incurred by the Legislature under this bill would be approximately $150,000 each fiscal year.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2019 Increase/Decrease (use"-") |
2020 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
150,000 |
150,000 |
150,000 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
150,000 |
150,000 |
150,000 |
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 Senate, House of Delegates, and Joint Committee have requested approximately 2,000 paper checks per year through the State Auditor's Office over the past three completed fiscal years (FY2016-FY2018). Depending on the timing of the check request per this bill, the new expense created would range from $100,000 per year at the rate of $50 per check for those processed on the processing dates proposed, to $200,000 per year if all check processing requests fell outside of the proposed processing dates. The above estimate is a midway point between those two amounts of $150,000 taking into account the fact that paper check processing requests may not conform to the proposed processing schedule and may require being charged $100 per check in order to meet required payment deadlines. The prior three fiscal year paper check requests are broken down as follows:
FY2016
House - 574 Checks
Joint Committee - 1,381 Checks
Senate - 274 Checks
Total Checks - 2,229
New Expense @ $50 per check = $111,450
New Expense @ $100 per check = $222,900
FY2017
House - 574 Checks
Joint Committee - 1,351 Checks
Senate - 199 Checks
Total Checks - 2,121
New Expense @ $50 per check = $106,200
New Expense @ $100 per check = $212,400
FY2018
House - 455 Checks
Joint Committee - 1,067 Checks
Senate - 127
Total Checks - 1,649
New Expense @ $50 per check = $82,450
New Expense @ $100 per check = $164,900
FY2016-FY2018 Average Number of Checks = 2,000
2,000 x $50 = $100,000
2,000 x $100 = $200,000
Memorandum
As the processing dates have not been established and several variables could affect the timing of when checks would need to be processed, the above estimates are set at a midpoint between the new expense that would be incurred by the Legislature at the two proposed processing fee rates of $50 and $100. This was calculated by multiplying the average number of checks requested by the Legislature from FY2016-FY2018 by the average of the two proposed fees as follows:
2,000 Checks x $75 Fee = $150,000
Person submitting Fiscal Note: Justin Robinson
Email Address: justin.robinson@wvlegislature.gov