FISCAL NOTE
FUND(S):
3265
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.
In FY08, the Division of Natural Resources collected $21,229,122 in user fees at state parks, state forests, and other recreational facilities managed by the Parks and Recreation Section. Of this total, $4,770,553 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.21% of the time. Therefore, $1,488,741.66 of the revenue generated from cabins came from West Virginia residents. If a 10% reduction was given to West Virginia residents, the loss in cabin revenue would be $148,874.17.
In addition, $1,761,829 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 69.31% of the time. The revenue from camping fees paid by West Virginia residents is $1,223,123.68. A 10% reduction in this amount would result in a loss of $122,112.37.
A total of $5,189,791 was collected in lodge room sales. From the daily tabulation of folios, it is known that 38.83% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,015,195.85 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $201,519.59.
Subtracting the above amounts from the grand total revenue of $21,229,122 leaves a balance of $9,506,949. This represents the amount collected from day-use recreational facilities such as golfing, swimming, picnic shelter rentals, horseback riding stables, etc. From attendance surveys, we know that 65% of all daily visits are by West Virginia residents; therefore, the amount received from them is $6,179,516.85. If this were reduced by 10%, the loss in revenue would be $617,951.69
Revenue Source FY08 Revenue from WV Residents 10% Reduction if Bill Were Enacted Total Loss of Revenue
Cabin Rentals $1,488,741.66 $(148,874.17) $(148,874.17)
Revenue Source FY08 Revenue from WV Residents 10% Reduction if Bill Were Enacted Total Loss of Revenue
Camping $1,221,123.68 $(122,112.37) $(122,112.37)
Revenue Source FY08 Revenue from WV Residents 10% Reduction if Bill Were Enacted Total Loss of Revenue
Lodge Room Rentals $2,015,195.85 $(201,519.59) $(201,519.59)
Revenue Source FY08 Revenue from WV Residents 10% Reduction if Bill Were Enacted Total Loss of Revenue
Day-Use Fees (golfing, swimming, etc.) $6,179,516.85 $(617,951.69) $(617,951.69)
TOTAL $(1,090,457.82)
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2011
Increase/Decrease
(use"-") |
2012
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-1,090,458 |
-1,090,458 |
| 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 |
-1,090,458 |
-1,090,458 |
Explanation of above estimates (including long-range effect):
In FY08, the Division of Natural Resources collected $21,229,122 in user fees at state parks, state forests, and other recreational facilities managed by the Parks and Recreation Section. Of this total, $4,770,553 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.21% of the time. Therefore, $1,488,741.66 of the revenue generated from cabins came from West Virginia residents. If a 10% reduction was given to West Virginia residents, the loss in cabin revenue would be $148,874.17.
In addition, $1,761,829 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 69.31% of the time. The revenue from camping fees paid by West Virginia residents is $1,223,123.68. A 10% reduction in this amount would result in a loss of $122,112.37.
A total of $5,189,791 was collected in lodge room sales. From the daily tabulation of folios, it is known that 38.83% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,015,195.85 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $201,519.59.
Subtracting the above amounts from the grand total revenue of $21,229,122 leaves a balance of $9,506,949. This represents the amount collected from day-use recreational facilities such as golfing, swimming, picnic shelter rentals, horseback riding stables, etc. From attendance surveys, we know that 65% of all daily visits are by West Virginia residents; therefore, the amount received from them is $6,179,516.85. If this were reduced by 10%, the loss in revenue would be $617,951.69
Revenue Source FY08 Revenue from WV Residents 10% Reduction if Bill Were Enacted Total Loss of Revenue
Cabin Rentals $1,488,741.66 $(148,874.17) $(148,874.17)
Revenue Source FY08 Revenue from WV Residents 10% Reduction if Bill Were Enacted Total Loss of Revenue
Camping $1,221,123.68 $(122,112.37) $(122,112.37)
Revenue Source FY08 Revenue from WV Residents 10% Reduction if Bill Were Enacted Total Loss of Revenue
Lodge Room Rentals $2,015,195.85 $(201,519.59) $(201,519.59)
Revenue Source FY08 Revenue from WV Residents 10% Reduction if Bill Were Enacted Total Loss of Revenue
Day-Use Fees (golfing, swimming, etc.) $6,179,516.85 $(617,951.69) $(617,951.69)
TOTAL $(1,090,457.82)
Memorandum
Revenues have declined somewhat in FY10 due to higher gasoline prices; the considerable impact of major construction projects at both Twin Falls Resort and Berkeley Springs state parks; and the overall effect of the current recession. As a result FY10 revenues are not a true measure of the overall impact of this legislation. Therefore, this estimate is still based upon the higher earlier revenue figures from FY08.
If further information is needed regarding this fiscal note, please contact:
Robert Beanblossom, District Administrator
Division of Natural Resources
Parks & Recreation Section
324 4th Avenue
South Charleston, WV 25303-1228
304.558.2764 office
304.389.5041 cell
304.558.0077 fax
Person submitting Fiscal Note: Robert Beanblossom
Email Address: Robert.L.Beanblossom@wv.gov