FISCAL NOTE
Date Requested: January 21, 2020
Time Requested: 12:58 PM |
| Agency: |
Auditor, State of WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2435 |
Introduced |
HB4437 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
State Funds
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of proposed House Bill 4437 is to add additional eligible unbanked payees of state funds to the West Virginia Pay Card Program in order to increase efficiencies and decrease the amount and expense of paper check issuances.
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 |
-507,000 |
-507,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
-507,000 |
-507,000 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Currently, the State of West Virginia prints approximately 13,000 Paper State Warrants each week or about 676,000 Paper State Warrants per fiscal year. We anticipate a reduction in the number of Paper State Warrants upon adoption of the provisions of the proposed Bill which would approximate 15% of the number of such Warrants currently produced and result in the printing of 101,400 fewer Warrants each fiscal year. Further, we believe the cost savings associated with the reduction in the number of Paper State Warrants would approximate $5.00 per Warrant, primarily made up of the finishing costs and mailing costs associated therewith and result in total annual savings of $507,000.
Memorandum
In addition to the abovementioned anticipated savings, we also believe the proposed Bill may result in additional costs to State government, primarily related to any administrative costs which might accrue to the West Virginia State Treasurer associated with Request for Proposals which may necessary to implement the provisions of the proposed Bill. Accordingly, we recommend a Fiscal Note Request be forwarded to the West Virginia State Treasurer in order for the Treasurer to provide the Legislature with cost estimates related to possible implementation of the proposed Bill.
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov