FISCAL NOTE
Date Requested: February 11, 2020
Time Requested: 12:11 PM |
| Agency: |
Agriculture, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2075 |
Amendment |
HB4800 |
|
|---|
| CBD Subject: |
Agriculture |
|---|
|
FUND(S):
Multiple Funds (General, Special, Federal Rev.)
Sources of Revenue:
General Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The language in HB4800 provides for the transfer of all personnel, real and personal property of the Division of Forestry, and financial resources to the Department of Agriculture (WVDA) effective July 1, 2020. WVDA believes that this will be an opportunity for efficiencies to be gained through realigning and consolidating existing activities currently performed by both the Division of Forestry and the WVDA's own Plant Industries Division. Consolidation of these activities will facilitate cross-utilization of staff expertise and resources across multiple programs, and eliminate any duplication of effort that currently exists between the functions.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
8,000,000 |
8,000,000 |
| Personal Services |
0 |
5,500,000 |
5,500,000 |
| Current Expenses |
0 |
2,250,000 |
2,250,000 |
| Repairs and Alterations |
0 |
250,000 |
250,000 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
3,000,000 |
3,000,000 |
Explanation of above estimates (including long-range effect):
NOTE: THE ESTIMATED REVENUES AND EXPENSES HAVE BEEN DEVELOPED WITH VERY LIMITED INFORMATION. THE AMOUNTS PRESENTED ABOVE REPRESENT OF THE TOTAL COST OF THE PROGRAM RATHER THAN SPECIFIC INCREASES OR DECREASES TO EXISTING FUNDING LEVELS FOR THE PROGRAM.
Based on a review of Forestry revenue and expenditures from FY15 onward, the estimated annual operating cost is approximately $7-8 million. When compared to average revenue of $2.5-$3 million (including federally-funded programs), there is an anticipated deficit which would require support via General Revenue However, both revenue and expenses are difficult to estimate. Plans are being formulated to optimize the resources held by the Division of Forestry to closely align with and support economic growth in the industry.
Some of the factors affecting expenses for the WVDA initial and subsequent years of responsibility for Forestry programs include the number, composition and current salary of Forestry staff during and after the transition (the number of full-time versus temporary positions, cost of fringe benefits, leave accruals of full-time employees [including Comp Time], and/or outstanding unemployment or workers' comp claims, for example), current and future utilization of facilities, and equipment. Existing equipment and equipment needs (including vehicle fleet) would have to be evaluated to determine if and when future capital outlays would occur.
This projection does not include anticipated revenue and expenditures of the Outdoor Heritage Conservation Program's dedicated fund (3091), as that funding source is considered highly restricted and cannot be used to support general Forestry operations.
Memorandum
None noted.
Person submitting Fiscal Note: Alan Clemans, on behalf of Sandra Gillispie, CFO
Email Address: sgillispie@wvda.us