SB 0206 - Fiscal Note

Fiscal Note - SB 0206 - Establishes the Mature Worker Child Care Program

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 0933-02

BILL NO. SB 206

SUBJECT: Children and Minors

TYPE: Original

DATE: January 25, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	($147,840)	($182,058 to $212,058)	($186,834)
Total Estimated Net Effect on All State Funds	($147,840)	($182,058 to $212,058)	($186,834)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 5 pages.

FISCAL ANALYSIS

ASSUMPTION

The Department of Mental Health assumes this proposal would not fiscally impact their agency.

The Department of Social Services (DOS) states that according to the State Demographer's Office, there are 117,532 people over the age of 50 and below 100% of poverty. The Department of Health has determined there are 4,311 licensed providers with approximately 16,958 personnel. If 588 of these individuals (.5% x 117,532) participate in the program, DOS assumes the additional cost of the background screenings could be absorbed with existing resources. Therefore, DOS assumes this proposal would not fiscally impact their agency.

The Department of Health (DOH) states that based on U.S. Census Bureau data, it is estimated there are 117,532 disadvantaged persons in Missouri that are 50 years of age or over. For the purposes of this fiscal note, the term "disadvantaged individuals" refers to persons 50 years of age or over with an income at or below 100% poverty level. Of the 117,532 persons, it is estimated that 5% or 5,877 of those persons would be interested in working in child-care assignments. There are 4,311 licensed child-care facilities in Missouri with approximately 16,958 staff positions available. It is doubtful that 5,877 persons could be placed in child care assignments due to the limitations on the number of available positions, and as some areas have a higher concentration of persons with an income at or below 100% poverty level. Therefore, DOH estimates that 10% or 588 disadvantaged persons over 50 years of age would be placed in child care settings.

DOH anticipates that it will only be necessary to fund four participating organizations to supervise the participants. The participating organizations would be located in Kansas City, St. Louis, Springfield, and Cape Girardeau. Based on a total of 588 disadvantaged persons over the age of 50 to be placed in child care settings statewide, each organization would supervise approximately 147 persons to work an average of 24 hours per week. DOH assumes this would require one full-time staff person in each organization to supervise the participants. DOH assumes these positions will be contracted out and the contracting organizations will be responsible for recruiting and training participants, locating child care assignments, and paying participants. DOH estimates contracting costs at $41,865 per person, including a salary of $30,000, travel, office, and data processing expenses of $9,600, and rent expenses of $2,265, for total contracting costs of $167,460 for the participating organizations. Oversight assumes additional FTE could be located using existing office space and contracting costs would total $158,400.

ASSUMPTION (continued)

DOH further assumes this proposal would require a Health Program Representative (HPR) III and a Clerk Typist II to be located in Jefferson City. The HPR III ($33,972) would be responsible for supervising the Mature Worker Child-Care Program and all state staff working with the program. Duties would include developing a computer database to record and track information on participating organizations, developing administrative rules to implement the program, supervising the contracting process, monitoring the organizations and their utilization of awarded funds, developing an annual comprehensive report for submittal to the legislature, developing a plan to enhance public awareness of the program, responding to complaints about the program, and supervising the development and implementation of procedures and training to assist the participating organizations in all facets. The Clerk Typist II ($19,260) would be needed for clerical support for the HPR III and to assist in all areas of the program.

Oversight assumes this proposal limits administrative costs to 12% of the amount funded for the program, and therefore, has limited administrative costs to the Department of Health to 12% of the estimated contract amount.

Oversight further assumes this proposal would result in a cost of up to $30,000 to general revenue every two years for costs related to the independent evaluation of the Mature Worker Child Care Program, as required. Oversight further assumes that existing resources could be used for the contracting process. For fiscal note purposes, Oversight assumes the first evaluation would be completed during FY01.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE
Costs - Department of Health (DOH)
Contract Costs for
Participating Organizations	($132,000)	($162,552)	($166,816)
Administrative Costs	($15,840)	($19,506)	($20,018)
Total Costs - DOH	($147,840)	($182,058)	($186,834)
Costs - Oversight Division
Evaluation of the Mature Worker		$0 to
Child Care Program	$0	($30,000)	$0
FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
ESTIMATED NET EFFECT		($182,058
ON GENERAL REVENUE	($147,840)	to $212,058)	($186,834)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Small Business
No direct fiscal impact on small businesses would be expected as a result of this proposal.

DESCRIPTION

This proposal creates the Mature Worker Child Care Program under the Department of Health. The program will administer a statewide community service to enroll disadvantaged individuals, age fifty or older, to work in child care assignments. Enrollees may include qualified individuals who are currently participating in existing community service programs.

The proposal requires the Department of Health to take proposals from organizations that are interested in contracting to supervise program participants. Contracting organizations will be responsible for recruiting and training participants, locating child care assignments, and paying participants. Contract proposals are to include a federal minimum wage requirement, a process allowing approximately a twenty-four hour work week, a description of the range of services to be provided by participants, and a requirement that participating child care facilities provide proof of licensure, if required. This program is to be implemented by July 1, 2000 and will be funded through general revenue funds with no more than twelve percent of the funds used for administrative purposes.

The proposal also requires the Oversight Division of the Committee on Legislative Research to award up to thirty thousand dollars every two years for an independent evaluation of the program. Based on this evaluation, the Department of Health is required to provide an annual report

by March 1 of each year, beginning in 2001.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Social Services

Department of Health

Department of Mental Health

Committee on Legislative Research

Oversight Division

Jeanne Jarrett, CPA

Director

January 25, 1999