Page 1 of 2 LRC 2022-BR831-HB137GA
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2022 R EGULAR SESSION
MEASURE
2022 BR NUMBER 831 HOUSE BILL NUMBER 137 GA
TITLE AN ACT relating to supplemental payments to police officers.
SPONSOR Representative Melinda Gibbons Prunty
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED: Criminal Justice Training
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED Kentucky Law
Enforcement Foundation Program Fund
FISCAL ESTIMATES 2021-2022 2022-2023 2023-2024 2023-2024 ANNUAL
IMPACT AT FULL
IMPLEMENTATION
REVENUES
EXPENDITURES Indeterminable:
> $360,000
Indeterminable:
> $360,000
Indeterminable
(See fiscal explanation)
NET EFFECT (Indeterminable:
> $360,000)
(Indeterminable:
> $360,000)
Indeterminable
(See fiscal explanation)
( ) indicates a decrease/negative
PURPOSE OF MEASURE: HB 137 GA expands the definition of “police officer” to add
various officers as eligible to receive a $4,000 training incentive payment provided by the
Department of Criminal Justice Training (DOCJT) from the Kentucky Law Enforcement
Foundation Program Fund (KLEFPF). The legislation also requires the KLEFPF to provide
reimbursement to the employers of the newly-added officers for Federal Insurance Contributions
Act (FICA) tax.
FISCAL EXPLANATION : This legislation could impose significant costs to the KLEFPF. It is
not known how many personnel would be added under these provisions as many of the personnel
added are at the local level. Each new officer added would increase costs by $4,000 plus related
fringe costs annually. Additionally, the provisions of this legislation extend reimbursement for
FICA tax (currently 7.65%) to some local employers. Currently, all local units of government
employing eligible KLEFPF stipend recipients receive an administrative cost reimbursement of
7.65% on the amount of the stipend in excess of $3,100 and is capped at $525,000 annually
(KRS 15.460(1)(c)1. and 3.). Therefore, HB 137 GA would provide both the administrative
reimbursement and FICA to a subset of local units of government, while all other local units of Page 2 of 2 LRC 2022-BR831-HB137GA
government would only receive the administrative reimbursement on $900 ($4,000 - $3,100). To
date, there is no known administrative burden shouldered by any employer whose officers
receive the training incentive stipend.
Additionally, it is unclear whether this legislation is intended to only capture County Attorney
investigators at the local level, the state level, or both; however, only the local portion appear to
be captured. Furthermore, County Attorney and Commonwealth's Attorney Offices do not
employ any investigators. There are, however, a total of 53 detectives under
County/Commonwealth's Attorneys in state personnel queries (only one of which is employed
by County Attorneys). These 53 positions would increase costs by $353,100 annually, but only if
the legislation is amended to reference the correct job title (i.e., Commonwealth’s Detective and
County Detective). This cost estimate assumes reimbursement for FICA tax, not the
administrative reimbursement, is provided. Costs will decrease to $348,800 if HB 137 GA is not
intended to capture Detectives employed on the state side of County Attorney Offices.
Regarding officers serving on joint task forces, it is believed that there are only two individuals
who would be captured by these provisions. If enacted, costs to the KLEFPF would increase by
$12,200 annually.
Furthermore, depending on the number of officers these provisions ultimately add as eligible to
receive the stipend, the DOCJT may need to employ additional staff, such as Training
Instructors, to avoid training delays for its current clientele. On average, a single training
instructor costs about $105,000 annually, including salary and related fringe benefits.
Lastly, it is important to note that expanding the number of eligible KLEFPF participants will
impact the County Employees Retirement System in the fact that retired/rehired KLEFPF
participants do not trigger employer contributions if the rehiring agency is a sheriff department
or police department (i.e., the System will lose contributions it otherwise would receive). An
actuarial analysis would provide greater detail as to the potential impact of reduced contributions
resulting from these changes.
Based on all of the above, costs will vary significantly depending on the exact number of officers
being added to participate in receiving stipend payments, the number of new staff hires the
DOCJT will need to accommodate the increase in its clientele, any changes in salary, and/or
fringe benefit costs, as well as any other unforeseen cost factors.
DATA SOURCE(S): LRC Staff
PREPARER: Zach Ireland NOTE NUMBER : 72 REVIEW: JAB DATE: 2/21/2022