FISCAL NOTE
Date Requested: January 31, 2024
Time Requested: 01:34 PM |
| Agency: |
Human Services, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3106 |
Introduced |
HB5398 |
|
|---|
| CBD Subject: |
Crime; Domestic Relations; Juveniles |
|---|
|
FUND(S):
0403 - DIV OF HUMAN SERVICES GENERAL ADMINISTRATION FUND, 8816 - TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)
Sources of Revenue:
General Fund Federal
Legislation creates:
Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill relates to establishing a drug testing program for adults who apply to serve as foster parents, kinship parents, or caregivers to displaced children in the legal custody of the Department of Human Services.
The Department estimates a fiscal impact of $464,572 initially and $147,706 ongoing. The Department could potentially receive some federal participation, but would need prior approval from Federal agency, therefore, currently projecting state funding.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
464,573 |
147,706 |
| Personal Services |
0 |
464,573 |
147,706 |
| Current Expenses |
0 |
0 |
0 |
| 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 currently has a contract in place with a vendor to provide drug testing services. The current contract parameters do match the list of drugs outlined in the bill. Additionally the contract does specify urine testing. The drug testing vendor currently charges $29.33 per urine drug screening. The vendor has locations throughout the State of West Virginia where individuals can be tested. After October 2025 the costs of each drug test could increase or decrease as the contract will have to be re-bid.
The current and future costs are based on a calculation of $29.33 per urine screening drug test.
Currently the Department estimates there are 3,258 foster families that would be required to be tested. It is also assumed that each foster families has at least 2 adult individuals in the home. The calculation would be $29.33 per test times 6,516 individuals $191,115 for the initial costs. For future years the Department estimates the cost based on the number of new home studies requested of 2,518 with at least 2 adults in each home; 5,036 times the $29.33 per drug screening for an ongoing cost of $147,706.
Currently the Department estimates there are 2,957 TANF relative caretaker cases that would be required to be tested. It is also assumed that each TANF relative caretaker case has at least 2 adult individuals in the home. The calculation would be $29.33 per test times 5,914 (2,957 x 2) individuals for a total cost of $173,458 for the initial costs. For future years the Department cannot estimate the cost based on an unquantifiable possible increase in the number of new TANF relative caretakers cases.
Programming and system changes to account for tracking of information in system is estimated at $100,000 per current contractor.
Memorandum
Because the current drug testing contract expires in October 2024 and only has one remaining renewal, the cost of each drug test could increase or decrease after October 31, 2025. Additionally, if all adults in the home beyond the parents of household will be required to be drug tested, additional costs will be incurred at the $29.33 per drug test per individual. The Department does not have an estimate of how many homes have additional adults, beyond the 2 parents, in the home.
There is reference in the bill language to "…who has a positive drug test shall complete a substance abuse treatment and counseling program approved by the secretary." The bill is silent to whom shall pay for the cost of the treatment and counseling program. If it is the bill's intent that the Department will bear these costs, the estimate will increase. The Department does not have an associated cost of treatment and counseling, nor an estimate of the number of positive drug tests. Therefore the cost are not estimateable.
Cost estimates do not include personnel costs associated with assisting current or future foster parents, kinship parents or caregivers with scheduling drug tests. Tracking negative and positive drug tests are also not factored into personnel costs associated with assisting current or future foster parents.
Person submitting Fiscal Note: Cynthia A. Persily, Cabinet Secretary
Email Address: dhhrbudgetoffice@wv.gov