FISCAL NOTE
Date Requested: February 21, 2025
Time Requested: 01:18 PM |
| Agency: |
Human Services, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1447 |
Introduced |
HB2730 |
|
|---|
| CBD Subject: |
Human Services |
|---|
|
FUND(S):
0403 - DIV OF HUMAN SERVICES GENERAL ADMINISTRATION FUND
Sources of Revenue:
General Fund
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 is to improve the affordability, access, and quality of childcare by reducing the cost to the parent or caretaker.
The Department estimates cost associated with this bill to be $2,099,816 the first year and $923,243 upon full implementation. A similar program was implemented in Michigan and this estimated cost is based on that state's activity of employee participation counts, rounded to 100 employees.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
2,099,816 |
927,316 |
| Personal Services |
0 |
202,303 |
202,303 |
| Current Expenses |
0 |
1,897,513 |
725,013 |
| 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 Bureau for Family Assistance has calculated a total child care provider cost for 100 participants to amount to $1,275,040.00, equal responsibility of $425,013.00 each for the state, employer and employee (state share only is included in above amount).
Model breaks out participants by age group and applies cost per child at the Per Market Rate costs for Infants (17 at $49 each), Toddlers (15 at $47 each), Preschool (30 at $49.50 each) and School Age (38 at $49.50 each) times 260 days per year. (17 x 49) + (15 x 47) + (30 x 49.5) + (38 x 49.5) = 833 + 705 + 1,485 + 1,881 = 4,904 x 260 days = 1,275,040/3 = $425,013 shared responsibility.
Total estimated cost for personal services for FY2026 would be $202,303. This would include $107,672 ($53,836 each) for two Health & Human Resource Specialist Senior and $42,182 for one Accounting Tech 3 position to oversee and administer the additional duties. Benefits estimated at 35% of PS in the amount of $52,449 are also included in personal services. Additionally, unquantifiable costs for printing, mailing and travel costs have not been included.
Current expenses for FY2026 would include the estimated start-up costs of $22,500 for three employees ($7,500.00 x 3) and would be a one-time cost. Start-up costs includes costs for computers, furniture and office supplies. In future years, these costs will be reduced/eliminated.
Additional estimated costs include systems development costs, in the amount of $1,000,000, which would be reduced or eliminated in future years, consumer education costs in the amount of $150,000 (one-time), and the economic impact study costs on the communities this bill would require, in the amount of $300,000. In order to provide a rapid response for the impact statement, no solicitations for the estimated costs used herein were obtained. These impacts would need to be supported by general revenue.
Memorandum
The full costs for this are unquantifiable by the Bureau for Family Assistance. The above fiscal note detail impact does not consider escalation or diminution of participants or market rates for providers. Michigan experience was 102 participants in the first year, but grew to more than 3,600 by year three.
There would be a Fiscal Impact to BCSE if WV Dept of Human Services decides to be a participating employer- however BCSE is unable to quantify due to the unknown variants of the number of new hires that meet the qualifications, their total household income, the number of day care age children in their home, and cost of day care services in the areas of the pilot program.
The Department's Bureau for Social Services could experience a reduction in expenditures related to court ordered child care for foster/adoptive children. This savings cannot be calculated since court ordered child care is not a program within the Bureau. Court order child care is currently covered with state funding, however if the results of this program reduce the amount of court order child care services, a savings could be recognized.
Person submitting Fiscal Note: Alex J. Mayer
Email Address: osafiscalnotes@wv.gov