FISCAL NOTE
Date Requested: February 18, 2026
Time Requested: 04:00 PM |
| Agency: |
Human Services, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2090 |
Comm. Sub. |
HB4390 |
|
|---|
| CBD Subject: |
Juveniles |
|---|
|
FUND(S):
0489 - BUREAU FOR SOCIAL SERVICES FOSTER CARE
Sources of Revenue:
General Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to require that a kinship parent be paid a subsidy equal to that of a foster parent in specified circumstances and set forth the timeframe for such payment.
The Department anticipates a fiscal impact of $1,080,080 yearly should this legislation pass based on 6 months of higher rate. This estimated cost provided is the yearly cost for one month of home studies. Amount would likely be significantly higher as continued new kinship homes come on board (over 200 home studies are requested per month) and each have 6 month timeframe to become certified. Therefore, as one home is in the 6 month process, other homes are starting the process. Additionally, the estimate accounts for cost savings related to requiring kinship parents to pay for background checks, which are currently paid by the Department.
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 |
1,080,080 |
1,080,080 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
1,080,080 |
1,080,080 |
| 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 bill requires that eligible kinship placements receive a temporary increase in subsidy amount equal to the foster parent subsidy for up to six months.
The Bureau for Social Services estimates the fiscal impact based on the Average of 216 home study request for kinship each month. This calculation takes the Average of 216 homes a month x 2 children for a total estimated child count of 432. The rates are tiered by age. Historical averages indicate approximately 35% in Tier 1, 30% in Tier 2, and 35% in Tier 3. Therefore, 151 kids (432 x 35%) for Tier 1 would equate to a cost of $119,290 (151 x $790) per month or $715,740 for 6 months. Tier 2 would be 130 kids (432 x 30%) totaling $110,630 (130 x $851) per month or $663,780 for 6 months. Tier 3 would be 151 kids (432 x 35%) totaling $142,242 (151 x $942) per month or $853,452 for 6 months. Total cost to apply foster parent subsidy would be $2,232,972 ($715,740 + $663,780 + $853,452). This Cost is all state dollars and is not IV-E reimbursable.
This cost would be offset by the current rate being paid (TANF rate) which is not based on age, but number of children in the home. The more children in the home equals a lower per child rate. Factoring this into the offset is more difficult, however, an initial estimate based on subsidies paid July-Sept 2025 for kinship placements totalled approximately $513,000 with differing lengths of time in the home. This amount reflects payments made during the specified quarter, although the service period may have been for different times. If this amount were applied to two quarters (6 months), it would equate to approximately $1,026,000.
Potential increased cost ($2,232,972) less estimated current payments ($1,026,000) would equate to a net increase of $1,206,972. These estimates change depending on the number of children in non-certified, non-licensed home each month.
Additionally the state will save $26,892.00 ($25 application fee+$37.25 background check= $62.25*432 potential parents=$26,892) from Home study backgroud checks currently being covered by the Department. $1,206,972 - $26,892 = net cost of $1,180,080.
The above calculations are based on the below Tier amounts.
Tier I - $790 for ages 0-5
Tier II - $851 for ages 6-12
Tier III - $942 for ages 13+
Memorandum
This estimate reflects only the direct subsidy cost impact and does not include secondary administrative workload increases for eligibility verification, payment processing, and monitoring compliance with the bill’s requirements.
Person submitting Fiscal Note: Alex J. Mayer, MSA, PMP, DoHS Cabinet Secretary
Email Address: osafiscalnotes@wv.gov