FISCAL NOTE
Date Requested: January 14, 2026
Time Requested: 05:10 PM |
| Agency: |
Human Services, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1635 |
Introduced |
HB4067 |
|
|---|
| CBD Subject: |
Health |
|---|
|
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 provide a subsidy for child care services rendered to children of child care program employees.
A bill that would require WV DoHS to develop a program and procedures that would provide any employee working 20 hours or more per week in a licensed childcare center or certified family childcare (FCC) home be eligible for a childcare subsidy, regardless of their household income. The DoHS would incur additional costs associated with developing, administering, and monitoring the expanded program. No direct increase in state revenue is anticipated as a result of this measure.
The Department estimates the fiscal impact of this legislation to be $27,246,815 state funds the first year and $27,240,039 state funds ongoing.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
27,246,815 |
27,240,039 |
| Personal Services |
0 |
340,959 |
340,959 |
| Current Expenses |
0 |
26,905,856 |
26,899,080 |
| 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 Department estimates the need for additional staff totaling $340,959. This amount includes total salaries of $252,562 for two HHS Seniors at $63,870 or total of $127,740, one Accounting Technician 3 at $48,122, and one Program Manager at $76,700. Employee benefits of $88,397 calculated at 35% of salary.
The Department has calculated an estimated figure based on workforce and utilization assumptions derived from the current childcare workforce data. The childcare workforce is estimated at (8,611) employees. Approximately 74% (6,372) employees are assumed to work 20 hours or more per week. Of those eligible, 33% (2,103) are assumed to exceed the federal CCDF income eligibility limit, 67% (4,269) employees are assumed to already qualify for and potentially be already serving. Families exceeding income limits (2,103) are assumed to have an average household size of 1.7 children, resulting in 3,575 children requiring state-funded payments. Average monthly childcare payment is estimated at $627 per child, based on the current ACF 801 report. Annual cost per child is ($7,524). Estimated annual cost for 3,575 children is (26,898,300).
Current expenses for FY2027 would include estimated start-up costs of $6,776 for four employees ($1,694 x 4) to include laptop, docking station, monitors, warranty, cell phone and would be a one-time cost. Additionally, cell phone service of $780 x 4 employees would be needed and would be ongoing costs. Total estimated cost is $27,246,815 ($340,959 + $26,898,300 + $6,776 + $780) the first year and $27,240,039 ($340,959 + $26,898,300 + $780) ongoing. Future costs will based on participation rates, changes in workforce size, adjustment to monthly childcare rates, availability of state funding.
Memorandum
The bill seeks to require WV DoHS to develop and implement a program allowing employees working 20 hours a week in a licensed childcare center or FCC home to be eligible for childcare subsides regardless of their household income.
The bill would have significant financial impact on the WV DoHS and require additional staff (2 HHS Seniors, 1 PM and a Acct Tech 3) to operate and maintain the program.
Current childcare policy does not allow family childcare providers (FCC) to use childcare subsidies to increase their ratio at home. If allowed, Family Child Care providers would be able to bill WV DoHS for childcare services, while also billing for childcare services they provide.
It should also be noted that federal regulations do not allow for subsidy funding to cover cost of childcare for individuals or families whose household income exceeds 85% of the state median income. State funding would need to be allocated to pay for those families.
Person submitting Fiscal Note: Alex J. Mayer, MSA, PMP, DoHS Cabinet Secretary
Email Address: osafiscalnotes@wv.gov