Sources of Revenue:

General Fund

Legislation creates:

A New Program

Fiscal Note Summary

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

The purpose of this legislation is to establish the Bureau of Health Care Improvement and set forth the related legislative findings as well as the bureau staffing and duties. It also creates the Healthy Children and Healthy Communities Act; on or before January 1, 2015, all county school boards, the Bureau for Public Health, the Division of Highways and municipal governments may determine the feasibility of collaborative agreements which provide for the use of all available public facilities in communities for healthy lifestyle opportunities and shall report to the Joint Committee on Government and Finance. These entities shall determine how each public facility and recreational area may be better utilized for physical activities. The Department estimates the cost of the proposed legislation to create the feasiblity of collaborative agreements for health lifestyle opportunities to be $38,455 in FY 2015. There is an appropriation of $250,000 for the Governor's Office of Health Enhancement and Lifestyle Planning; with the passage of this legislation, it will be renamed the Bureau of Health Care Improvement and moved under the authority of Secretary of the Department of Health and Human Resources. It is assumed that this appropriation will transfer to the Department to cover current personnel costs and current expenses.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2014 Increase/Decrease (use"-")	2015 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	38,455	0
Personal Services	0	24,171	0
Current Expenses	0	14,284	0
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):

Personal Service costs are estimated based on 1 FTE for a Health and Human Resource Specialist Senior at an annual salary rate of $31,164 and Fringe benefits at 55.12% ($17,178 annually). Total personal services is $24,171 for six months of annualized salary and benefits. Current Expenses costs include In-state travel, estimated at 7,200 miles @ $0.47 per mile for a total of $3,384; telephone, internet, and general office supplies at $150 per month for a six-month cost of $900; and $10,000 in contractual costs. A temporarily reallocated full time staff person will perform duties such as: engaging state and local stakeholders to assess feasibility, costs, barriers, and opportunities for joint land-use agreements that promote physical activity in communities; researching evidence-based strategies related to increasing physical activity in communities through joint land use agreements and built environment improvements; initiating and monitoring contracts for cost analysis research; coordinating the development of a report of the assessment. Contractor services are expected to be necessary for conducting cost analysis as specified within the Bill.

Memorandum

If the "Healthy Children and Healthy Communities Act" were to be implemented beyond the report, due on January 1, 2015, additional resources would need to be allocated to provide for stable staffing and programming funds. The legislation mentions several activities and pilot programs in which the Bureau for Medical Services would be a participant or collaborator with the newly established Bureau for Health Care Improvement, however any related fiscal impact can not be determined. Note section 16-29H-5(e) of the legislation does not include the Bureau for Medical Services in the membership of the Health Care Improvement Advisory Council along with the other payers and agencies such as PEIA, Office of the Insurance Commissioner, WV Health Care Authority, and WV Children's Health Insurance Program.

Person submitting Fiscal Note: Karen L. Bowling
Email Address: karen.l.bowling@wv.gov