FISCAL NOTE

Date Requested: February 25, 2019
Time Requested: 02:57 PM
Agency: Health and Human Resources, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2487 Introduced HB2010
CBD Subject: Human Services


FUND(S):

0403 - DIV OF HUMAN SERVICES GENERAL ADMINISTRATION FUND, 8722 - CONS FEDERAL FUNDS DIV HUMAN SERVICES GEN ADMN FD, 8816 - TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF), 8757 - FEDERAL BLOCK GRANT SOCIAL SERVICES FUND, 8817 - CHILD CARE DEVELOPMENT BLOCK

Sources of Revenue:

General Fund Federal

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 make modifications to West Virginia's foster care system. The shift in funding from a fee-for-service delivery system to a managed care delivery system is estimated to be cost neutral in year one, with future cost savings to be determined as experience is gained. The cost shift is estimated at $225 million. The department estimates a fiscal impact of $393,984 for FY2020 and $348,984 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 0 393,984 348,984
Personal Services 0 378,349 378,349
Current Expenses 0 15,635 -29,365
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):


This will cost the department $378,349 in salary and fringes for FY2020 and ongoing, and $15,000 in one-time costs for FY2020. The following salaries are based on the department average for each classification. Salary for an HHR Office Director I (Ombudsman) - $58,386, two Program Manager 1 positions - $100,500, two Office Assistant 2 positions - $43,350, two HHR Specialist Seniors - $78,022 for a total of $280,258 for personal services. Fringes would total $98,091 (35%). One time costs include $45,000 start-up. One-time costs are for computers, phones, furniture, etc. Current expenses for FY2020 and on going will be $5,000 for travel costs for the Program Manager 1, which would include mileage, hotels and training. Current staffing levels will be sufficient to cover any other responsibilities included in the bill. Limiting the requirement for a risk and needs assessment (YLS_CMI) would result in a cost savings of a minimum of $34,365 annually. This savings is based on the following: Licensure of the "risk assessment totals $2,000 annually. Materials would include a cost of $75 per training manual times 184 allocated Youth Services positions totaling $13,800. The online cost for YLS-CMI assessments currently is $10 per assessment. Based on SFY 2018 new Youth Service cases totaling 376 would result in $3,760 in costs. This total does not include youth who may require a YLS-CMI assessment retro- retroactively. Estimated training costs could total up to $14,805 annually. This total includes travel, lodging and per diem for 5 days.



Memorandum


Performance-based contracting: This requirement will not cost the department any additional monies. The current budget will be capped and will be managed with available funds. Non-Medicaid portion of costs: The department will have the ability to set rates. This should save the department money. This savings cannot be quantified at this time. Foster Care recertification: Changing the recertification requirements from annually to every three (3) years would not appear to have any fiscal impact on the Bureau for Children and Families (BCF). Child Placing Licensure: Any fiscal impact cannot be quantified at this time. Child Care Licensing Unit: This would require a revision to the Child Placing rules to meet the provisions of the bill. The bill has a provision regarding recertification and the department having sole authority to determine if a substantial change has occurred. This would require a substantial increase in resources needed and responsibilities of the Residential Learning Unit. The impact cannot be quantified as the bill is unclear if the department would need to review every home or child placing agency.



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