FISCAL NOTE

Date Requested: February 11, 2016
Time Requested: 02:51 PM
Agency: Agriculture
CBD Number: Version: Bill Number: Resolution Number:
2161 Introduced HB4515
CBD Subject: Agriculture


FUND(S):

1481 - WV Spay Neuter Assistance 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.


    HB4515 establishes a method to fund the WV Spay Neuter Assistance Program via an increase in the fee assessed for large pet food package registrations (those packages exceeding 10 pounds). This program, established in 2013, was previously unfunded; this proposal will establish a reliable external revenue stream of approximately $200,000 per year to the special revenue fund dedicated to spay neuter activities.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 55,000 50,400
Personal Services 0 50,400 50,400
Current Expenses 0 3,000 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 1,600 0
2. Estimated Total Revenues 0 222,300 222,300


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


    There are currently 2,223 products registered as of the date of this Fiscal Note. Based on this number of registrations, the $100 increase would generate an estimated $222,300 per year exclusively for the Spay Neuter Assistance Fund. The actual amount will vary slightly from year to year due to the fluctuation in the number of products registered annually. The total revenue deposited into the fund, less administrative expenses (in accordance WV Code 19-20C-2(c)) would drive the number and amount of spay neuter assistance grants which could be awarded by the Department of Agriculture to entities throughout the state.
    
    A new 1.00 FTE position for a Registration Specialist is requested at $36,000/year (plus benefits). The additional staff member would help equalize the workload of existing staff and avoid registration backlogs or delays. In the case of this fee increase, the position would focus on reconciling registrations to ensure that fees are properly split between the Agriculture Fees Fund (which would receive the first $50 of each registration) and Spay Neuter Assistance Fund (which would receive the remaining $100). This position would also identify erroneous registrations and process refunds in a timely manner to avoid an overstated balance in the Spay Neuter Assistance Fund. Once all revenue is processed (net of refunds), total funding available for annual grants and administrative expenses can be identified. To aid in the tracking and reconciliation process, enhancements to the agency’s existing registration management software would also be required in the first year at an estimated cost of $1,600. New work space for the new employee and other miscellaneous implementation costs would result in $3,000 in initial expenses as well.
    



Memorandum


    Upon passage of HB4515, the Department of Agriculture would need to submit an improvement package for Fund 1481 (WV Spay Neuter Assistance Fund) in order to increase the spending authority of this Appropriated Special Revenue fund to a level sufficient to expend the anticipated revenue in order to fully implement the program.



    Person submitting Fiscal Note: Alan Clemans, on behalf of Sandra Gillispie, CFO
    Email Address: aclemans@wvda.us