FISCAL NOTE
Date Requested: January 13, 2022
Time Requested: 11:11 AM |
| Agency: |
WVU |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1156 |
Introduced |
SB31 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
Special Medical School Fund for Soft Drinks Tax
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The soft drinks tax provides crucial funding to support WVU medical, dental and nursing schools. WVU would not be able to provide these healthcare professionals to serve our state if we lose the soft drinks tax and do not receive another equitable source of funding.
WVU uses the proceeds from the soft drinks tax to maintain quality faculty and student services, including salary and benefits for 237 state employees. Loss of this revenue will result in loss of jobs and a reduction of support for these health sciences schools. Ultimately, this will culminate in training fewer doctors, nurses and dentists to care for patients in the state and in providing less support for programs that assist those in need around the state. Furthermore, WVU is engaged in several strategic initiatives, including solutions for COVID-19, preventing opioid deaths from drug overdose and our comprehensive opioid addiction and treatment program, which could be severely impacted if we are forced to reduce these types of initiatives and redeploy moneys to keep our medical, dental and nursing schools accredited and operational.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2022
Increase/Decrease
(use"-") |
2023
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
13,133,780 |
13,133,780 |
| Personal Services |
0 |
9,626,423 |
9,626,423 |
| Current Expenses |
0 |
3,344,880 |
3,344,880 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
162,477 |
162,477 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-13,728,544 |
-13,728,544 |
Explanation of above estimates (including long-range effect):
Actual revenue received per year is dependent upon soda sales so it is not definitively predictable. In order to produce a conservative best estimate, the above dollar amounts are based upon the average actual revenue received and subsequent dollars expended over the past two closed fiscal years (FY20 and FY21).
However, please note that actual revenue received in recent years has been lower than previous years, presumably due to decreased soda sales resulting from the pandemic. The amount provided in the annual budget bill for these years is higher than revenue received. In both FY20 and FY21 the budget bill allowed for $16.4M transferred as revenue to WVU but $13.6M and $13.9M was received, respectively. Thus, the amount of lost revenue to WVU is likely to be higher in future years.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
None.
Person submitting Fiscal Note: Victoria Thomas
Email Address: vthomas@hsc.wvu.edu