FISCAL NOTE

Date Requested: January 24, 2022
Time Requested: 04:25 PM
Agency: Health and Human Resources, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2172 Introduced HB4344
CBD Subject: Juveniles


FUND(S):

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

Sources of Revenue:

Other Fund General & Federal

Legislation creates:

Increases Existing Expenses



Fiscal Note Summary


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


The purpose of this bill is to update foster care regulation. The department estimates a fiscal impact of $18,495,739 ($11,619,650 federal and $6,876,089 state) related to this bill for the first year and $11,745,739 ($5,952,350 federal and $5,793,389 state) each year thereafter. Of this amount,$10,495,739 is the total for Personal Services, which includes the employee benefits and a one-time cost of $8,000,000 for development, design, integration. Ongoing maintenance costs for each additional year is $1,250,000.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2022
Increase/Decrease
(use"-")
2023
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 18,495,739 11,745,739
Personal Services 0 10,495,739 10,495,739
Current Expenses 0 8,000,000 1,250,000
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):


The department has 1,265 direct service employees, filled and vacant. Out of the 1,265 positions, 273 are currently vacant. That is approximately a 5:1 ratio for every position that are currently vacant. The 20% raise would have a FY2023 estimated cost of $10,495,739 (the average salary was utilized for each classification when calculating the 20% increase for the vacant positions). The $8M for development, design, & integration and ongoing maintenance and overhead of $1.25M per year was provided by the Department's current Integrated Eligibility System vendor.



Memorandum


In summary, it may require up to $8M in development, design, and integration and $6.25M ($1.25M per year) in maintenance and overhead over remaining life of contract to implement and maintain items described below; for total of $14.25M. It may be substantially less or more depending on final requirements, timeline to implement, integration points, and maintenance and operations.  Note, this is not a formal or binding quote and represents only an educated estimate given the aforementioned unknowns.  Above estimate is broken down as follows: Data Dashboard may be best visualized via tableau and incorporated into the Department's website.  The design, development, and integration of data may require up to $2M depending on final requirements.  Up to $250k annually may be required to refresh, maintain, and update dashboard.      Matching Database - Integration requirements and capabilities of "additional products" are unclear.  Up to $3M may be required to implement with as much as $500k annually to refresh, maintain, and update database.    Portal - Integration requirements and capabilities of "additional products" are unclear.  Up to $3M may be required to implement with as much as $500k annually to refresh, maintain, and update database.    Clarification is being requested on 49-2-111d (c) "Funding for the pay rates for direct service employee of the Bureau for Social Services shall be provided from the general revenue appropriations to the bureau". These positions complete time studies which determine the funding split with general revenue and other federal revenue funding. These funding splits change monthly based on the results of the time studies. The calculations above are based on the most recent completed fiscal year data. Is this section indicating they will all be funded by general revenue, thereby foregoing the federal funding or is this indicating that the general revenue portion must be covered by current appropriations?



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