FISCAL NOTE
Date Requested: March 05, 2025
Time Requested: 03:06 PM |
| Agency: |
Human Services, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3615 |
Introduced |
SB702 |
|
|---|
| CBD Subject: |
Human Services |
|---|
|
FUND(S):
0403 - DIV OF HUMAN SERVICES GENERAL ADMINISTRATION FUND
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 the Bureau for Family Assistance to increase the base rate paid to childcare providers and to study a performance-based model of incentive payments to increase quality and to provide reporting.
The fiscal impact of this legislation is difficult to quantify, however, based on the current CPI-U, the Department estimates cost associated with this bill to be $3,016,160 the first year and $3,106,625 for the second year.
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 |
3,016,160 |
3,106,625 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
3,016,160 |
3,106,625 |
| 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's Bureau for Family Assistance has provided an estimate of a provider rate increase of 3% based on the January 2025 year-over-year increase in the CPI-U for all categories. The calculation used 11,857 participants, 260 participant days and revised current base rates to compile the cost of the increased rate . The second year increase was computed at 103% of the first year increase. These impacts would need to be supported by general revenue.
The factors for calculating the base rate, on which this CPI-U increase would be a modifier, are laid out in federal regulations.
The costs for the study are de minimis and can be conducted by existing staff with existing resources.
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 reduction of participants or market rates for providers.
Bill Language for Annually Increasing Payment Rates
Beginning September 1, 2025, and September 1st annually thereafter, the Bureau of Family Assistance shall increase the base rate for each type of care based upon the Consumer Price Index for all Urban Consumers.
The Child Care and Development Block Grant Regulations require that rates be analyzed and set by:
• Type of care provided by quality level and setting
• Cost of providing care by age group, including staffing ratios
• Geographic and local variations
• Sufficient to ensure that regulatory requirements can be met
• Sufficient to support the cost of care
• Based on a Narrow Cost Analysis completed within the specific state.
• Include information from local Market Rate Survey Analysis completed with the specific state.
Person submitting Fiscal Note: Alex J. Mayer
Email Address: osafiscalnotes@wv.gov