FISCAL NOTE
Date Requested: March 07, 2023
Time Requested: 09:51 AM |
| Agency: |
Homeland Security, Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3515 |
Revised Comm. Sub. Eng. |
SB596 |
|
|---|
| CBD Subject: |
Corrections |
|---|
|
FUND(S):
Special Revenue/General Revenue
Sources of Revenue:
Special Fund Would affect both Special And General
Legislation creates:
Decreases Existing Revenue, Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
New process to recalculate the perdiem to offer counties a discount if they stay under 80% of their pro rata share of inmate days and also a penalty if they go over the pro rata share of days.
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 |
129,000 |
129,000 |
| Personal Services |
0 |
126,000 |
126,000 |
| Current Expenses |
0 |
2,000 |
2,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
1,000 |
1,000 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-6,253,227 |
0 |
Explanation of above estimates (including long-range effect):
Avg Days Billed for last 2 fiscal years is 929,359 if DCR collected the actual Revenue for those days it would be 929,359 x 54.48 = 50,631,478. With the new calculations based on the same data the new SB would only collect $44,378,252 for a loss of $(6,253,227) for fy 24
I also think there will need to be at least 1 or 2 additional staff at the DAS. With the delay in court orders and the way credits and debits are already a constant daily process, I think this will increase those types of corrections substantially and require a lot of scrutiny to make sure they are credited and debited at the proper amount and days are corrected etc. I also think we will need a person to track the county jail days daily to make sure that the correct per diem is utilized.
Division of Administrative Services - General Fund increase
2 FTE @ 45,000 = 90,000
Benefits @ 40% = 36,000
Total = 126,000
Current Exp = 2,000
Assets = 1,000
Total impact to Gen Rev is $129,000
Estimated Revenue was only predicted for FY 24 but there would be continuous additions to loss of Revenue each year.
Memorandum
With the new tiered structure allowing the counties to get a discount of 20% of the per diem rate, for keeping their jail billing under 80% of the pro rata share of days (K)(2), or paying actual rate from 80%-100%, or paying 120% for anything over their pro rata share of days DCR jail fund would be shorted approximately $6.3 million in revenue even if every county paid their invoices in full.
Avg Days Billed for last 2 fiscal years is 929,359 if DCR collected the actual Revenue for those days it would be 929,359 x 54.48 = 50,631,478. With the new calculations based on the same data the new SB would only collect $44,378,252 for a loss of $6,253,227
This bill has the County per diem rate at $54.48 as of 7/1/23, there will be a new rate for DCR calculated in 8/1/23 for FY 24 which will be different than the counties. Those 2 per diem rates along with the discounted rate, penalty rate and the 2 federal rates will cause us to have up to 6 different rates to track. This will create additional programming to be done on the new billing system to allow for these transactions to be billed correctly.
I also think there will need to be at least 1 or 2 additional staff at the DAS level to track these days. With the delay in court orders and the way credits and debits are already a constant daily process, I think this will increase those types of corrections substantially and require a lot of scrutiny to make sure they are credited and debited at the proper amount and days are corrected etc. I also think we will need a person to track the county jail days daily to make sure that the correct perdiem rate is utilized
Person submitting Fiscal Note: Bryan Arthur
Email Address: Bryan.D.Arthur@wv.gov