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 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)
    



Fiscal Note Detail


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


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)
    



Memorandum


    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.L.Beanblossom
     Email Address: Robert.L.Beanblossom@wv.gov