FISCAL NOTE
Date Requested: January 18, 2023
Time Requested: 10:41 PM |
| Agency: |
Health and Human Resources, WV Department of |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1982 |
Introduced |
HB2582 |
|
|---|
| CBD Subject: |
Taxation |
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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 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 reduce the amount of money provided in welfare programs for individuals who can otherwise work or obtain an education.
As written, the Department cannot determine the fiscal impact of this legislation. The cost for development of new policy, business rules and processes, and IT system changes for this change is unquantifiable, but would be enormous. Costs for IT systems changes that would be necessary to accommodate these new business rules and processes are anticipated to be in the millions.
See additional comments in memorandum section.
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 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| 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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Memorandum
If the term "assistance" in the new §9-3-7 created under this bill is construed to be the same as "welfare assistance" as defined for Chapter 9 in §9-1-2, it would apply to every program administered by the Bureau for Family Assistance, as well as Medicaid.
Impacted programs would include, but are not limited to:
Supplemental Nutrition Assistance Program (SNAP)
Temporary Assistance for Needy Families (TANF)/WV WORKS
Child Care Subsidy
Low-Income Home Energy Assistance Program (LIHEAP)
Low-Income Home Water Assistance Program (LIHWAP)
Emergency Assistance
Indigent Burial
Medicaid
Time limits for eligibility and work/education requirements for these programs are often defined in federal law.
Regarding TANF, there is flexibility to set more restrictive time limits than the regular 60 month lifetime limit set in federal regulations, which won't necessarily require any shift to state dollars, but a reduction in TANF benefits disbursed. Furthermore, approximately 60% of families who received TANF benefits in WV in FFY22 were child-only cases (including kinship-relative caretakers); the bill is unclear on how those cases would be impacted.
On SNAP, the Department has been advised that if the bill is enacted as drafted, there would likely be consequences as outlined in 7 CFR 276.4, which provides for the suspension or disallowance of all or part of a state's federal funding for administration of the SNAP program when it determines that a state agency "fails to comply with the SNAP requirements established by the Food and Nutrition Act of 2008, the regulations issued pursuant to the Act, or the FNS-approved State Plan of Operation.”
While the bill provides a few narrow exceptions (death of a spouse or minor child, personal long-term illness, or being caretaker for someone with long-term illness) which would extend receipt of benefits for a limited time, it does not define how someone is otherwise determined to be "capable of enrolling in a trade school or college program" or "capable of working or starting a business." It could be construed as applying to any individual over the age of 18, which would have an impact on the elderly and disabled.
Overall, it should be noted that this could also potentially pose unquantifiable financial and systemic risks to the child welfare system, as struggling families who might find themselves losing access to these benefits would be at increased risk of child welfare involvement.
Person submitting Fiscal Note: Jeffrey H. Coben
Email Address: dhhrsecretary@wv.gov