FISCAL NOTE
Date Requested: March 05, 2025
Time Requested: 09:32 AM |
| Agency: |
Tourism, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3694 |
Introduced |
HB2009 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
General Revenue
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill proposes to merge and reorganize the Department of Arts, Culture, and History and its sections and commissions under the Department of Tourism, specifying the authority of the Secretary of the Department of Tourism over these sections and commissions. By merging these two departments, several cost-saving measures have been identified.
These cost-saving measures include increasing electronic communications to both reduce costs and ensure better deliverability, strategically prioritizing staff travel to reduce mileage reimbursements, transitioning to virtual meetings in some cases, reducing underutilized office space, canceling outside services that are no longer needed as a result of new on-staff expertise gained in the merger, and reducing marketing costs for cultural programming by folding those costs into the Department of Tourism’s existing public-private partnership program for media buying.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
-15,535 |
-187,470 |
-203,005 |
| Personal Services |
0 |
0 |
0 |
| 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):
PRINTING: Increasing Electronic Communications
The estimated cost savings for this transition to more electronic communications is $19,000.00 based on the Department of Arts, Culture, and History’s current expenses for printing newsletters and publications, as well as freight for distribution. The Department of Tourism currently has systems in place for electronic communications, such as email newsletters, that allow the Department to track deliverability and open rates. Since these systems and tools are already in place, this transition for many of the Department of Arts, Culture, and History’s publications will result in cost savings. As part of the merger, we will evaluate the audiences for each printed piece and strategically transition a portion of them to digital formats.
TRAVEL: Virtual Meetings, Reducing Mileage Reimbursement, and Prioritizing Staff Travel When It is Truly Needed
We will begin convening certain meetings and review committees virtually to save on travel costs for staff and commission members. Staff travel requests will be evaluated to ensure that staff members are comparing costs and using fleet vehicles and rentals whenever possible to reduce mileage reimbursement costs. Travel requests that have a demonstrated need for in-person components, such as site visits to historic properties, will be prioritized and approved, while others that could easily be conducted virtually will be convened via online meeting platforms. We estimate these changes will save the Department at least $44,500 in mileage and meeting costs.
OVERHEAD: Reducing Costs for Underutilized Office Space
The Educational Broadcasting Commission currently owns office space for a small number of staff members located in Morgantown, which incurs roughly $70,000 annually in building-related expenses. As part of the merger, the Commission is interested in selling this space and pursuing a partnership with a local university to accommodate staff's need for a small amount of studio space and – simultaneously – to increase student involvement. While the building has not been recently appraised and we are unsure of the projected sale price, the sale of this real property will also generate one-time income for the agency, in addition to the annual cost-savings.
MARKETING: Combined Spending Power and Efficiencies
The Department of Tourism already purchases paid media in large volumes through the existing public-private partnership program. Through the merger, the current advertising costs that the Department of Arts, Culture, and History incurs will be reduced, as the Department of Tourism will strategically fold these costs into the public-private partnership program. This program will generate an estimated $31,830 in cost savings due to the volume of media purchased and through leveraging private contributions to shared advertising. In addition, the Department of Tourism currently pays a number of outside vendors for communications-related services. At least one of these external services, estimated at $22,140.00, can be eliminated due to on-staff expertise and efficiencies identified at the Department of Arts, Culture, and History.
Summary:
Overall, the merger of the two Departments is expected to generate at least $203,005 in cost savings as a result of the opportunities described above to leverage new shared expertise and efficiencies.
Memorandum
We are actively evaluating all the existing expenses for both state agencies and will continue to identify cost-saving measures and opportunities for new strategic collaborations. The content in this fiscal note represents the expenses, which we are confident can be reduced.
Person submitting Fiscal Note: Krysten Wolfe
Email Address: Krysten.A.Wolfe@wv.gov