FISCAL NOTE
Date Requested: March 21, 2025
Time Requested: 02:59 PM |
| Agency: |
Homeland Security, Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4038 |
Introduced |
SB880 |
|
|---|
| CBD Subject: |
Corrections; Public Safety |
|---|
|
FUND(S):
WV DCR Genereal Revenue
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
In the Spring of 2024, DCR started the process to assume operations and ownership of the Stevens Correctional Center. In November 2024, DCR and the McDowell County Commission entered into a sales contract and deed. The County Commission, for in-kind consideration, conveyed said property and assets to DCR on November 22, 2024, in addition to entering into the sales contract outlining the terms. DCR worked with the State’s Administration with said conveyance and to obtain one-time funding through a supplemental appropriation and requested a budget increase for ongoing operations which are all outlined in more detail below. At this time, the last part of this process is to deal with the transfer of county employees to being DCR employees. The $3,813,657.00 mentioned below in this fiscal note is already in the Governor’s budget bill for the 2026 fiscal year.
Additional costs will arise with acquiring and assuming the operations, buildings, and grounds of the Stevens Correctional Center. Personnel costs will make up approximately 60% of the cost of acquisition. Currently, McDowell County pays considerably less to their staff than what DCR pays its prison staff. For example: the starting salary for a Correctional Officer paid through McDowell County is $28,000.00. The starting salary for a Correctional Officer employed with DCR is $42,900. Although the current proposed total cost to acquire Stevens Correctional Center is a little over $5 million, that total not only includes the real property Stevens is situated upon; also, vehicles, equipment, materials, and other assets. The property alone that Stevens sits upon and its structures most likely are worth well over $5million. Consideration for the property and assets is in- kind, no cash is being paid to McDowell County. DCR is receiving a large array of real and personal property at an extreme cost value percentage. McDowell County will still owe a per diem towards the cost to house their inmates. However, given the fact that DCR is taking over their employee costs, as well as the operational costs of the facility; it is expected the McDowell County Commission will have a more realistic ability to maintain their per diem responsibilities. Furthermore, although the DCR is taking on costs; due to the employees and facility having to follow DCR and State procedures and protocols, the facility will be run at a more efficient and proficient manner.
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 |
3,813,657 |
3,813,657 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
3,813,657 |
3,813,657 |
| 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):
In the Spring of 2024, DCR started the process to assume operations and ownership of the Stevens Correctional Center. In November 2024, DCR and the McDowell County Commission entered into a sales contract and deed. The County Commission, for in-kind consideration, conveyed said property and assets to DCR on November 22, 2024, in addition to entering into the sales contract outlining the terms. DCR worked with the State’s Administration with said conveyance and to obtain one-time funding through a supplemental appropriation and requested a budget increase for ongoing operations, all outlined in more detail below. At this time, the last part of this process is to deal with the transfer of county employees to being DCR employees. The $3,813,657.00 mentioned below in this fiscal note is already in the Governor’s budget bill for the 2026 fiscal year.
DCR currently receives two appropriations for per diem payments to McDowell County, totaling $10,405,785. The intent is to retain said appropriations, changing the budget description to Stevens Correctional Center operating costs. The $10.4M is not included in the above amounts but our personal services amount of $8,515,911 is included in the $10.4M. DCR received a one-time amount in a Supplemental for FY25 in the amount of $6.5M for needed start-up. Exact costs for repairs and alterations costs are unknown at this time until we assume the operations of said prison.
Stevens Correctional Center
1 Additional Operating need:$3,813,657
Currently DCR receives $10,405,785 in their McDowell County and Stevens
appropriations that are allocated for per diem payments. DCR will need an additional, on-going $3,813,657 for operating the facility.
2 DCR Supplemental for FY25 $6,500,000
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.
There will be no increase in services, expenses, repairs, etc.; other than employee salaries. Long term costs will be de-minimized by the efficiency changes implemented due to following of DCR and State policies and procedures.
Memorandum
There are multiple and far-reaching economic impacts to both the region and the State related to the DCR’s acquisition of Stevens Correctional Center:
1) The McDowell County Commission will be relieved of a large (too large for them) financial burden, freeing them for the potential better and more efficient use of county tax payer dollars
2) DCR, although taking on some initial increased cost expenditures, will be able to better address costs and financial dependency projects. Going from a county to a State-run facility will allow DCR to make better use of Government funds. It will also enable the DCR to better avoid potential liability situations due to more strictly adhering to State and Federal guidelines.
3) Lastly, and most importantly, this acquisition stands to be a major financial impact to the region and the State of WV. Employees of Stevens will immediately receive an almost 40% increase in salary and benefits. This will be an immediate infusion of funds back into the community due to an increase in purchasing power. The County will be relieved of a huge financial burden, better enabling the County to make mor efficient use of funds to grow the community. There will be a draw to the community, that has not existed in some time, due to a greater employment opportunity.
Person submitting Fiscal Note: Bryan D Arthur
Email Address: Bryan.D.Arthur@wv.gov