FISCAL NOTE

Date Requested: January 30, 2024
Time Requested: 10:54 AM

3291	Introduced	HB5293
Agency:	Human Services, WV Department of
CBD Number:	Version:	Bill Number:	Resolution Number:
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 $2,080,490 the first year and $907,990 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
Effect of Proposal	2024 Increase/Decrease (use"-")	2025 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	2,080,490	907,990
Personal Services	0	187,050	187,050
Current Expenses	0	1,893,440	720,940
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 $1,262,820.00, equal responsibility of $420,940.00 each for the state, employer and employee (state share only is included in above amount). Total estimated cost for personal services for FY2025 would be $187,050. This would include $101,756 ($50,878 each) for two Health & Human Resource Specialist Senior and $36,800 for one Accounting Tech 3 position to oversee and administer the additional duties. Benefits estimated at 35% of PS in the amount of $48,494 are also included in personal services. Additionally, unquantifiable costs for printing, mailing and travel costs have not been included. Current expenses for FY2025 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, 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: Cynthia A. Persily, Cabinet Secretary
Email Address: dhhrbudgetoffice@wv.gov