| Date Requested:February 14, 2013 Time Requested:04:53 PM |
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| FUND(S) 3265 | |||
|---|---|---|---|
Sources of Revenue | |||
| Special Fund | |||
Legislation creates:
Neither Program nor Fund | |||
Effect this measure will have on costs and revenues of state government.
| In FY2012, the Division of Natural Resources collected $21,708.177 in user fees at state parks, state forests, and other recreation facilities managed by the Parks and Recreation Section. Of this total, $4,964,781 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.81% of the time. Therefore, $1,579,296.84 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 $157,929.68.
In addition, $1,931,063 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 71.52% of the time. The revenue from camping fees paid by West Virginia residents is $1,381,096.26. A 10% reduction in this amount would result in a loss of $138,109.63. A total of $5,975,249 was collected in lodge room sales. From the daily tabulation of folios, it is known that 41.26% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,465,387.74 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $246,538.77. Subtracting the above amounts from the grand total revenue of $21,708,177 leaves a balance of $8,837,084. 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 $5,744,104.60. If this were reduced by 10%, the loss in revenue would be $574,410.46. To summarize: Revenue Source FY12 Revenue from W. Va. Residents 10% Reduction if Bill were Enacted Total Loss of Revenue Cabin Rentals $1,579,296.84 $(157,929.68) $(157,929.68) Camping $1,381,096.26 $(138,109.63) $(138,109.63) Lodge Room Rentals $2,465,387.74 $(246,538.77) $(246,538.77) Day Use Fees (golfing, swimming, etc.) $5,744,104.60 $(574,410.46) $(574,410.46) TOTAL $(1,116,988.54) |
| Over-all effect |
| Effect of Proposal | Fiscal Year | ||
|---|---|---|---|
| 2013 Increase/Decrease (use"-") |
2014 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) | |
| 1. Estmated Total Cost | 0 | -1,116,988 | -1,116,988 |
| 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 | -1,116,988 | -1,116,988 |
|
3. Explanation of above estimates (including long-range effect):
In FY2012, the Division of Natural Resources collected $21,708.177 in user fees at state parks, state forests, and other recreation facilities managed by the Parks and Recreation Section. Of this total, $4,964,781 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.81% of the time. Therefore, $1,579,296.84 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 $157,929.68.
In addition, $1,931,063 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 71.52% of the time. The revenue from camping fees paid by West Virginia residents is $1,381,096.26. A 10% reduction in this amount would result in a loss of $138,109.63. A total of $5,975,249 was collected in lodge room sales. From the daily tabulation of folios, it is known that 41.26% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,465,387.74 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $246,538.77. Subtracting the above amounts from the grand total revenue of $21,708,177 leaves a balance of $8,837,084. 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 $5,744,104.60. If this were reduced by 10%, the loss in revenue would be $574,410.46. To summarize: Revenue Source FY12 Revenue from W. Va. Residents 10% Reduction if Bill were Enacted Total Loss of Revenue Cabin Rentals $1,579,296.84 $(157,929.68) $(157,929.68) Camping $1,381,096.26 $(138,109.63) $(138,109.63) Lodge Room Rentals $2,465,387.74 $(246,538.77) $(246,538.77) Day Use Fees (golfing, swimming, etc.) $5,744,104.60 $(574,410.46) $(574,410.46) TOTAL $(1,116,988.54) |
| 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 |