FISCAL NOTE
Date Requested: January 22, 2018
Time Requested: 11:48 AM |
| Agency: |
Health and Human Resources, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1377 |
Introduced |
HB4234 |
|
|---|
| CBD Subject: |
Human Services |
|---|
|
FUND(S):
5224 - HEALTHY LIFESTYLES FUND
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Program, Creates New Fund:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to create the "West Virginia Winner" program to promote healthy living and improve lifestyle and increase longevity of West Virginia residents by competing in various athletic and cultural events in the fifty-five counties. The bill provides that the program be administered by the Office of Healthy Lifestyles. And, the bill declares who may participate in the events together with participation fees to be paid.
The Department estimates the total costs of this bill to be $122,782 in 2019 and $112,310 each year thereafter. In 2019 the Department estimates revenue collections of $127,500.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
122,782 |
112,310 |
| Personal Services |
0 |
107,952 |
107,952 |
| Current Expenses |
0 |
14,830 |
4,358 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
127,500 |
0 |
Explanation of above estimates (including long-range effect):
The estimated $107,952 in Personal Services for FY2019 and ongoing is for a Health and Human Resources Specialist Senior to plan and develop the WV Winner program and an Office Assistant II to provide clerical assistance. Included in this estimated Personal Services cost are salaries in the amount of $70,854 for 1.00 FTE HHR Specialist Senior ($44,412) and 1.00 FTE Office Assistant II ($26,442); and Fringe Benefits in the amount of $37,098. Fringe Benefits include Public Employees Health Insurance Administrative Fees of $100 ($50 per employee x 2 FTEs); Personnel Administrative Fee of $360 ($180 per FTE x 2 FTE); Health Insurance of $18,456 ($9,228 per FTE x 2 FTEs); Social Security of $5,420 ($70,854 x .0765); Retirement of $7,794 ($70,854 x .11); Workers Compensation of $264 ($70,854 x .00372); and WV OPEB Contribution of $4,704 ($2,352 per FTE x 2 FTEs).
The estimated Current Expenses for FY2019 and ongoing is $1,600 and include landline telephone service at $1,200 ($50 per month x 12 months x 2.00 FTEs); office supplies at $400 ($200 per FTE x 2.00); one-time Current Expenses for FY2019 include desktop computer equipment at $1,536 ($768 x 2.00 FTEs); network printer at $500; in-state travel costs at $11,194 for the HHR Specialist Senior to meet with 55 county commissions for the purpose of promoting the WV Winner Program and providing technical assistance (344 miles x $0.545 per mile x 55 counties = $10,311, 5 overnight stays x $100 per night = $500, per diem x 2 days each trip x 5 trips x $38.25 = $383). One-time Current Expenses for FY2020 include in-state travel costs at $2,758 for the HHR Specialist Senior to attend a minimum of 10 WV Winner events (344 miles x $0.545 per mile x 10 counties = $1,875, 5 overnight stays x $100 per night - $500, per diem x 2 days each trip x 5 trips x $38.25 = $383). The number of miles is estimated using the average distance from Charleston, West Virginia to Martinsburg in Berkeley County (305 miles); New Cumberland in Hancock County (211 miles); Welch in McDowell County (106); and Wayne in Wayne County (66), and return. Per Diem is estimated using the per diem rate for Martinsburg.
According to 2016 US Census data, there are 1.7 million West Virginia residents that are 5 years of age or older. It is estimated that 17,000 people could participate in at least one WV Winner event across the State assuming that 1% of the 5 years of age or older population participates in one event. This proposed HB4234 requires counties that win bids to host events to send the Department the total of their initial bids. It also requires counties that do not win bids to host an event to send 100% of the participant fee to counties that host those events. Additionally, HB4234 also requires the Department to reimburse counties that host events 25% of their initial bids. Assuming that total initial bids equal estimated total participant fees ($10 participant fee x 17,000 participants = $170,000) and the Department reimburses hosting counties 25%, Department revenue would be $127,500 in FY2019 and no revenue for FY2020.
Memorandum
House Bill 4234 requires counties to submit bids on or before July 1, 2018. The Department anticipates that it will take one year to develop, promote, and implement the WV Winner program. It is estimated that should this proposed legislation become effective on July 1, 2018, counties will not be ready to begin hosting WV Winner events until July 1, 2019 (FY2020).
The bidding process is unclear under this proposed legislation with regards to events requiring a bid and those that do not.
The nature of the program design under this proposed legislation does not appear to be an evidence based intervention as it gravitates to those that are already in a state of health that would support competitive engagement. Additionally, it is unclear how this project would impact other agencies that also host and support similar events such as the Department of Tourism, Fairs and Festivals, high school athletics, and collegiate sports.
It is also important to note that House Bill 4234 will more than likely result in increased costs to county commissions.
Person submitting Fiscal Note: Bill J. Crouch
Email Address: Bill.J.Crouch@wv.gov