FISCAL NOTE

Date Requested: January 10, 2020
Time Requested: 03:59 PM
Agency: Agriculture, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1257 Introduced SB173
CBD Subject: Agriculture


FUND(S):

Special Revenue - WV Farm-to-School Grant Program Fund

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Revenue, Creates New Expense, Creates New Program, Creates New Fund: WV Farm-to-School Grant Program Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The bill proposed for the purpose of creating a Farm-To-School Grant Program (Program) and related activities, will incur costs to the state for the development, implementation, administration and review of the new Program. During the initial year, two (2) employees, utilizing thirty (30) percent of full time employment plus cost of fringe benefits, would be required to administer activities for the development and implementation phase of programming. During subsequent years, two (2) employees utilizing twenty (20) percent of full time employment plus cost of fringe benefits, would be required to administer activities for the implementation phase of programming. Additional costs for Program promotion, training, application processing, establishment and facilitation of a review committee and technical assistance would be required. Information in this fiscal note was developed by the WVDA Agriculture Business Development Division, who would be responsible for the program if implemented.



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 55,212 39,308 39,308
Personal Services 47,712 31,808 31,808
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 7,500 7,500 7,500
2. Estimated Total Revenues 0 0 0


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


With the addition of new Program administration responsibilities, two (2) full time employees will be required to complete necessary Program activities with the costs noted below. Employees would be existing employees, or possibly new, depending on program implementation timeline and staff workload. Program Development and Implementation Year 1 - (2) FTE x 30% effort + fringe rate brings us to a personnel total for Program management of $47,712. An additional $7,500 is estimated to be incurred for the promotion, training, application processing, establishment and facilitation of a review committee and technical assistance. The total Program management cost for Year 1 is estimated to be $55,212. Program Implementation Year 2 and Fiscal Year - (2) FTE x 20% effort + fringe rate brings us to a personnel total for Program management of $31,808. An additional $7,500 is estimated to be incurred for the promotion, training, application processing, establishment and facilitation of a review committee and technical assistance. The total Program management cost for Year 2 is estimated to be $39,308.



Memorandum


The bill does not provide definitions as used in this article and thereby has areas of vagueness throughout. For example, the bill is missing a definition for "local foods" thereby does not provide a clear indication of who would be eligible to participate in this Program. In addition, §19-38-2 of the bill establishes the Farm to School Grant Program Fund but does not establish an allocation. With the omission of the allocation, it is difficult to understand funding revenue or the size and scale of the Program that the state would be tasked with administering. In order to support effective administration of this program and fund, it is suggested that language be added to permit a percentage of annual fund revenue be used for administrative expenses. This would parallel other special programs and funds, such as the WV Spay Neuter Assistance Program established under WV Code 19-20C, which permits up to ten (10) percent of annual revenue be used for program oversight. §19-38-1 states this bill is an incentive to farmers to sell to local schools. §19-38-3 states that awards will be made to county school districts. It is unclear how awarding funds to the school district would be an incentive to farmers.



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