FISCAL NOTE

Date Requested: January 22, 2020
Time Requested: 11:03 AM
Agency: Legislative Auditor
CBD Number: Version: Bill Number: Resolution Number:
1260 Introduced SB176
CBD Subject: Legislature


FUND(S):

General Revenue

Sources of Revenue:

General Fund

Legislation creates:





Fiscal Note Summary


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


The provisions of this bill stipulate that a member of the Legislature may not receive more than five days of per diem compensation during any extension of regular session or extraordinary session until a budget bill is enacted. Assuming all 134 elected members of the West Virginia Legislature are in attendance for all five days of an extended regular or extraordinary session in which budget bill has not been enacted, this bill would cap the total amount of compensation for Legislators to $100,500.



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 0 0
Personal Services 0 0 0
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):


As extended regular or extraordinary session is not formulated into the budget for regular legislative session, the circumstances presented by this bill fall outside of the normal budgeted costs for member per diem compensation for regular session and would not have a direct effect on the above estimates. However, as a comparison to the 2016 and 2017 Legislative Sessions where extended or extraordinary session was required to pass a budget bill, the cost savings in each of those years is as follows: 2016 Extended/Extraordinary Session: Total Per Diem $377,600 Maximum Per Diem Per SB 176 $100,500 Reduction in Per Diem Cost Total $277,100 2017 Extended/Extraordinary Session: Total Per Diem $377,550 Maximum Per Diem Per SB 176 $100,500 Reduction in Per Diem Cost Total $237,050 Total Cost Savings for 2016 and 2017 Extended/Extraordinary Session = $514,150



Memorandum


This bill also has two provisions that are difficult to estimate a potential fiscal impact for based on the scenarios stipulated. "Provided, however, That no more than seven members of each house of the Legislature who are appointed by their presiding officer as a conferee on a budget bill that has been placed into conference may receive compensation and reimbursement for expenses beyond the five days: Provided further, That should the Governor veto a budget bill pursuant to the provisions of section fourteen, article VII of the Constitution of West Virginia, and then should an extended or extraordinary session of Legislature be necessary to complete the work on the budget, members may be compensated and reimbursed for expenses beyond the five days" This essentially stipulates that 14 members of the Legislature may receive additional per diem beyond the 5 days allowed when a budget bill has not been passed. Estimating the cost savings for this provision is difficult as extraordinary or extended session is not planned for or contemplated in the annual budget of the Legislature and any costs incurred as a result of those situations can vary based on several factors. However, allowing 14 members to receive additional compensation beyond the 5 days allowed by this bill would incur a cost of $2,100 per day (14 members x $150 per diem = $2,100). If all 134 members were paid per diem for all extraordinary or extended session days where a budget bill has not been passed, the daily per diem cost would be $20,100 (134 members x $150 per diem = $20,100). The limitation set by this provision would reduce per diem cost by $18,000 per day of extraordinary or extended session when a budget bill has not been passed. Under the provision that the Governor vetoes a budget bill requiring extended or extraordinary session, all members would be eligible for per diem beyond 5 days at a rate of $20,100 per day if all 134 members are present.



    Person submitting Fiscal Note: Justin Robinson
    Email Address: justin.robinson@wvlegislature.gov