FISCAL NOTE



FUND(S):

0403 - Div of Human Services General Administration Fund, 8722 - Cons Federal Funds Div Human Services Gen Admn Fund

Sources of Revenue:

General Fund,Other Fund Federal

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The purpose of this bill is to create a pilot program for children ages four through ten who are entering the foster care system and need specialized services and an evaluation upon entry. The estimated fiscal impact to the Department of Health and Human is $1,171,540 ($296,745 - fed and $874,795 - state) the first year and $2,194,165 ($551,456 - fed and $1,642,709) thereafter. See memorandum section below for additional information.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2010
Increase/Decrease
(use"-")
2011
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 1,171,540 2,194,165
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 1,171,540 2,194,165
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


The cost of providing training to foster parents = $148,915.20 The cost of increasing the Specialized Foster Care daily rate for the new children would be $2,045,250 ($75/day x 909 children x 30 days) per year upon full implementation. The delay in establishing the program (estimated to begin January 1, 2011) will result in the cost for the first year being approximately half that amount ($1,022,625).



Memorandum


There are several concerns in regards to this bill. Below are issues that affect the Department ability to assign costs to the pilot program: The assumption that placement is in a new category of Enhanced Specialized Foster Care home. The proposed legislation references an independent advocate for each child. The Department assumed the role of the independent advocate would be filled by volunteers from Court Appointed Special Advocates (CASA) or other similar organizations, thus no additional cost to the Department. There is a requirement for participation from child care agencies, Department of Education, community programs and other appropriate agencies. Under the assumption duties of these entities do not change, there would be no impact. However, if these duties are expected to change that would need to be defined to assign costs. The legislation requires an evaluation by an external agency. The Department currently does not have an agreement similar in nature to assist in determining associated costs. The population that would be covered by this pilot project have been assumed to be Medicaid covered, and already receiving treatment services through Medicaid. The Department assumes the crisis intervention services would be operated by the provider organizations which operate the Enhanced Specialized Foster homes, and thus no additional costs are included. The Department response assumes ยง49-7-35(d)(4) regarding the exemption of review under the Behavioral Health Medicaid Administrative Services contract will be removed from the bill. Assumptions used in developing costs: 1. An average of 909 children between ages 4-10 went into placement each year between 2007 and 2009. 2. A new category of Enhanced Specialized Foster Care Homes would be required. 3. Daily boarding care rate for Enhanced Specialized Foster Care estimated at $75/day for 30 days per child (current specialized boarding care rate is $50/day per child). 4. After 30 days in Enhanced Specialized Foster Care the child would revert to customary foster care settings, with customary Medicaid coverage and federal financial participation.



    Person submitting Fiscal Note: Patsy A. Hardy
    Email Address: dhhrbudgetoffice@wv.gov