Date Requested: January 26, 2015
Time Requested: 09:05 AM
Agency: Legislative Auditor
CBD Number: Version: Bill Number: Resolution Number:
2224 Introduced HB2239
CBD Subject: Boards and Commissions


FUND(S):



Sources of Revenue:

Special Fund

Legislation creates:

A New Fund



Fiscal Note Summary


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


    This bill would combine 25 health professional licensing boards into an umbrella Board of Health Professions. An executive director would have to be appointed by Governor and this fiscal note assumes that the boards would be consolidated into one facility.
    
    The boards would combine revenue and expenses as a result of this bill. As of 1/26/2015, the boards have a combined cash balance of $13,020,384.95. Combined revenues for FY 2014 $9,784,802.78 and expenses of $8,830,065.40. In FY 2014, the Board of Pharmacy purchased and remodeled a new office building which significantly increased expenses.
    
    Combined the boards license 91,253 individuals.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 525,364 -2,200,000
Personal Services 0 125,364 -2,100,000
Current Expenses 0 -100,000 -100,000
Repairs and Alterations 0 500,000 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 initial FY 2016 increase in personal services is for the hiring of a new executive director. The salary of $95,000 was selected since that is the current salary of several state cabinet secretaries. Including benefits this amount would be approximately $125,364.
    
    The long term decrease in personal services is a result of estimated efficiencies in consolidating personnel. The state of Virginia's Department of Health Professions was used as a model for comparison. Virginia has 314,626 licensees as compared to West Virginia's 91,253. Additionally, Virginia has approximately 230 employees (not including directors)compared to a current combined total of 90 (not including directors) employees that operate West Virginia's boards. The Virginia Department of Health Professions has 1,629 licensees per employee. West Virginia's combined boards have 1,013 licensees per employee. If West Virginia's Board of Health Professions were able to match the state of Virginia's efficiency of 1,629 licensees per employee then it is estimated that 56 employees (down from 90) would be needed to operate the Board of Health Professions.
    
    Current expenses was calculated by combining boards into one facility and paying rent for one entity rather than the current method of offices for each board. Currently, the boards operate out of 24 different facilities. Hillcrest Office Park was used as the current office space available in Charleston, and combining into this facility would be an annual decrease in rent expenses of $100,000.
    
    Repairs and Alterations was calculated by estimating a cost of moving all the boards and modifying an office for all the boards. $500,000 was used as an estimate.



Memorandum


    Estimates do not include consolidating other services such as: utilities, office supplies, information technology, office equipment, contracts, insurance, etc. It is assumed that further decreases in expenses would occur.
    
    Estimates also do not include the individual boards selling property such as the Board of Pharmacy selling its recently purchased office building.



    Person submitting Fiscal Note: Denny Rhodes
    Email Address: denny.rhodes@wvlegislature.gov