Date Requested: February 19, 2015
Time Requested: 03:26 PM
Agency: Health and Human Resources, Department of
CBD Number: Version: Bill Number: Resolution Number:
3063 Introduced HB2827
CBD Subject: Boards and Commissions


FUND(S):

0403 Division of Human Services Administrative Fund, 5454 James "Tiger" Morton Catastrophic Illness Fund

Sources of Revenue:

Special Fund

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 abolish the James "Tiger" Morton catastrophic illness fund and commission, and to require that all appropriations to the fund to be deposited in the state's General Fund.
    The Department of Health and Human Resources administers the James "Tiger" Morton Catastrophic Illness Program under §16, Article 5Q, of the West Virginia code, which provides medical care for catastrophically ill citizens and other assistance for citizens who have no other public or private resources. The proposed legislation, if adopted, will result in the elimination of a general revenue annual appropriation in the amount of $101,472 (based on FY2015 appropriation) and a one-time influx of $1,275,749 to the state's General Fund from the James "Tiger" Morton Catastrophic Illness special revenue fund.
    



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 -101,472 -101,472
Personal Services 0 -101,472 -101,472
Current Expenses 0 0 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):


    The above estimate is based on the state fiscal year 2015 general revenue appropriation of $101,472. In addition to the elimination of the annual appropriation, there is a one-time transfer to the state General Fund in the amount of $1,275,749 from the James "Tiger" Morton Catastrophic Illness special revenue fund (Fund 5454).
    Assuming, this legislation would be effective beginning with SFY2016, the current balance of Fund 5454 is $1,424,277 (as of 02/20/2015). The annual general revenue appropriation (from Fund 0403-45500) of $101,472 will be transferred into the fund, along with estimated expenses of $250,000 for the remainder of the SFY2015, for an estimated cash balance of $1,275,749.
    The general revenue appropriation (0403-455) for the James Tiger Morton Catastrophic Illness Fund (5454) has been reduced since it was established in FY2000 due to lack of expenditures and a growing cash balance . For the first three fiscal years, the appropriation was $1,000,000, dropping to approximately $940,000 for the next several fiscal years. By FY2010, the cash balance had grown to over $2,000,000 and the appropriation was then reduced to approximately $700,000 for FY2010 – FY2013. In FY2014, the appropriation was reduced to $100,327 with an additional midyear cut of $50,000; as of June 30, 2014 the fund still housed $1,634,342. Over the fourteen year period, average expenditures are $720,000. The FY2015 expenditures are expected to be below average, estimated at $460,065; with the Affordable Care Act (ACA) more individuals would be eligible for Medicaid, which results in a decreased need for these services.
    



Memorandum


    The James "Tiger" Morton Catastrophic Illness Commission currently has 1.4 FTEs that would need to be relocated for other duties elsewhere in the Department.
    



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