FISCAL NOTE

Date Requested: February 28, 2019
Time Requested: 09:19 AM
Agency: Health and Human Resources, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1490 Introduced SB24
CBD Subject: Health


FUND(S):

0407 - CENTRAL OFFICE GENERAL ADMINISTRATIVE FUND

Sources of Revenue:

General Fund

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, 2019 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 FY2020 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 would be $961,301 for FY2020 and ongoing.



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 0 0 0
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):


A recent report provided to the Department by the Association for Local Health Departments reflects that current LHD employee salaries are $16,341,712 and fringes and employee benefits (Social Security, Medicare, and Retirement) are $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 SB24 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 FY2020 budget bill stipulating the amount of 18400 funding appropriated for the sole purpose of providing 5% pay raises for LHD employees to ensure the established formula and funds the Department retains for emergencies and state support are calculated correctly. The calculations for the cost of the salary increase was based on total salaries instead of taking total employees multiplied by $2,370, which is the increase allowed for all state employees. At the time the fiscal note was prepared the count of total county health employees was not available.



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