FISCAL NOTE
Date Requested: January 18, 2023
Time Requested: 08:51 PM |
| Agency: |
Health and Human Resources, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2644 |
Introduced |
SB273 |
|
|---|
| 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
Sources of Revenue:
Other Fund Both General and Other 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 revise requirements regarding the allocation of child protective workers in counties based upon the population of the county. The department shall provide for a redundancy system for its centralized intake to provide for a seamless transition in the event of an outage. This system shall allow for reporting in the same means as if the outage had not occurred and no time delay shall occur when the outage takes place. The bill provides for data reporting on statistics from the time centralized intake is contacted. The bill creates a special merit-based system for critical, high need positions that the Bureau for Social Services has had difficulty filling. This system provides that there can be a pay disparity among regions in the state based upon job demand and market rates and this cannot be subject to a grievance even if it is within the same job classifications.
The Department estimates the fiscal impact to this legislation to be approximately $1,301,706 initially for start up costs (approximately $963,262 state/$338,444 fed). Ongoing costs are estimated at $879,189 (approximately $650,600 state/$228,589 fed).
The current statewide contract for phone systems with Segra does not have the option for redundant system for centralized intake to provide for a seamless transition in the event of an outage. In order to provide the required report and backup during an outage a new phone system would have to be obtained. There would be additional costs associated with obtaining a new phone system. These total $163,800 for the first year and $129,000 ongoing.
Estimated costs related to the creation and maintenance of a merit system separate from the DOP system is approximately $1,137,906 for implementation cost. This is additional financial support to administratively establish and manage the system. Estimate is based on similar process prepared a few years ago for the Office of Health Facilities. The start up costs would include new software, equipment, and space as well as a market study to help build the compensation system. This would not include any additional personnel costs incurred as a result of the new wage structure that may be implemented.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
1,301,706 |
879,189 |
| Personal Services |
0 |
493,006 |
411,930 |
| Current Expenses |
0 |
808,700 |
467,259 |
| 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):
Detailed costs to obtain a phone system that has the redundancy and reporting features is estimated for start up cost of $10,800.00, Equipment costs $24,000.00, Annual operating cost $129,000 for the first year and then $129,000 annually to maintain the system with the vendor.
Software cost of $405,065 initially and $338,259 ongoing based on vendor amounts.
Staffing is estimated at $493,006 for the first year and $411,930 ongoing.
Salary information is based on the addition of six full-time staff at a total of $411,930 ongoing. MIS Program Analyst at $40,560, Class & Comp Director at $71,822, HR Generalist 2 at $51,334 and 3 HR Generalist 1's at $44,928 each for a total of $298,500. Fringe benefits are calculated at 38% or $113,430. First year costs of $493,005 include estimates of 6 months to create system, rules, and policies. Staffing costs for the six full-time individuals would be calculated at 6 mo. rather than a full year ($411,930 / 2 = $205,965). Additionally, a request for 10 temporary staff is estimated for the first year @ $20/hr x 1,040 hours ($208,000), plus 38% benefit rate ($79,041) for a total of $287,041.
Equipment and furniture needs total $68,430. These costs include 6 laptops @ $1,010 each ($6,060), 6 docking stations @ $158 each ($948), 6 phones @ $749 each ($4,494), 12 monitors @ $244 each ($2,928), cubicle/office construction and furniture for 5 new cubicles total $36,000, and miscellaneous supplies/equipment of $3,000 each ($18,000).
Consultant costs for market analysis is estimated at $116,405 based on 2019 analysis with inflation. Outside attorneys for market analysis is estimated at $35,000 ($350/hr x 100 hrs). Total consulting cost, $151,405.
Staff training and conferences regarding implementation of merit-based pay system is estimated at $20,000.
Memorandum
The Department would need to create/recreate policies, procedures, classification and compensation plans, etc. Any law, rule, or policy created should be reviewed by qualified outside labor attorneys.
The legislation, if passed, would likely create a system of pay inequalities throughout all state government.
The legislation would require new classification pay codes in the wvOasis system and Kronos. The cost to the State Auditor's Office and vendor billing is not included in this fiscal note.
Reciprocity pertaining to tenure, leave accrual, preference hiring after layoff, and other benefits would not exist among agencies within the classified system.
Employees could not transfer from one merit system to another and would therefore be required to apply and be hired from a register for positions at other agencies.
State code includes references to classified, classified-exempt, exempt, merit system, and similar terminology relating to the merit system administer by DOP that would be complicated by the existence of a separate merit system.
The committee substitute for SB 273 requires the allocation of CPS workers based upon the 2020 census and a yearly report to the Legislative Oversight Commission on Health and Human Resource Accountability (LOCHHRA) by July 1. The 2020 census will not change for a decade. This would require static allocations for the next 10 years. Additionally, given the static nature of the census data, there would be no reason to report annually because the allocation would not change unless more positions were allocated. Beyond that, this methodology of allocation doesn’t allow for any flexibility in staffing needs being adjusted to respond to changing caseloads between counties. It is important to understand that a reallocation of positions just occurred in July 2022 based upon caseload data from the preceding year.
Additionally, the reallocation of currently funded positions would require the lay off of some workers in counties to reallocate to other counties with current vacancies.
There remain position vacancies in many localities across the state. Allocating additional positions to specific regions will have no real impact unless and until the currently vacant positions are filled. Once those vacancies are resolved, the Department suggests the undertaking of studies to determine the potential need to allocate additional positions in counties across the state.
Person submitting Fiscal Note: John Jackson
Email Address: DHHRBudgetoffice@wv.gob