FISCAL NOTE
Date Requested: January 15, 2026
Time Requested: 05:02 PM |
| Agency: |
Human Services, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2804 |
Introduced |
SB399 |
|
|---|
| CBD Subject: |
|
|---|
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FUND(S):
0483 - Bureau for Medical Services Medical Services Administration; 0489 - Bureau for Social Services Foster Care; 8722 - Cons Federal Funds Div Human Services Gen Admn Fd
Sources of Revenue:
Other Fund General and Federal
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to provide for the renovation and repair of state-owned properties and buildings to expand high-acuity psychiatric, neurodevelopmental, and trauma services for children in West Virginia.
The Department estimates a potential annual savings of $129,692 per youth transitioned from out of state to in state placement.
The Department anticipates potential savings of $6,383,185 in the first full year of implementation (estimated federal share $2,566,145/estimated state share $3,817,040).
Savings will be offset by cost of renovations to accommodate returning youth.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-6,484,600 |
-6,484,600 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
-6,484,600 |
-6,484,600 |
| 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's Bureau for Social Services indicates a potential savings, calculated by using the daily rate and yearly cost based on the average costs of the number of youth placed out of state to date, approximately 400 youth. The average yearly cost of one youth placed out of state is approximately $250,025 compared to the average yearly cost of one youth placed in state which is approximately $120,333.
The Department estimates cost savings by bringing home 50 children in the first year and an additional 50 children for each year thereafter. The savings is calculated at $250,025 (out of state cost) - $120,333 (in state cost) = $129,692 (savings per youth returning to WV) x 50 (current oos placements) = total savings of $6,484,600.
Repairs and renovations to existing state properties will reduce the cost savings, but will potentially be offset by HB5302/SB847 supplemental for $6 million should either pass.
Memorandum
Considerations not listed above:
This bill specifies that any savings from decreased numbers of out-of-state placements be reinvested into the fund. It should be noted that the Department will not receive any federal share from savings as federal share is only recognized as eligible expenditures occur, therefore, only the state share of savings will be deposited in the account.
There could be indirect costs of having additional in-state providers.
Person submitting Fiscal Note: Alex J. Mayer, MSA, PMP, DoHS Cabinet Secretary
Email Address: osafiscalnotes@wv.gov