FISCAL NOTE



FUND(S):

Road Fund

Sources of Revenue:

Other Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


The purpose of this bill is to create a Veterans Auxiliary Fund to assist with the mission of the Department of Veteran’s Assistance and to provide for donations to the fund by income tax return check off and by contributions facilitated by motor vehicle registration renewal forms. The current vendor responsible for mailing renewals estimates changes to add a check box on the renewal application would cost around two hundred dollars ($200). Internal accounting costs will be approximately $800 per year. Transaction costs, based on 1.3 million renewals and assuming 15 percent would inquire and 5 percent would donate, would cost approximately $282,100 annually. This fund will need to be separated on cash register tape receipts and deposits. Programming will be needed for our cash register system. The current vendor has given us a cost of $6,750 to implement these changes. Currently all revenues collected by the Division of Motor Vehicles, excepted only by specific provision, are designated for the State Road Fund. A Constitutional Amendment was required to allow for fees collected by the Division of Motor Vehicles to be sent to the Division of Natural Resources for the additional revenues generated by sales of the Deer and Bird plates.



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 289,850 289,850 282,900
Personal Services 282,900 282,900 282,900
Current Expenses 6,950 6,950 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):


Total Annual Renewals 1,300,000 Inquiries (15%) Actual Contributions (5%) 195,000 65,000 Time required for explaining Time required for entering program (minutes) 5 donation (minutes) .50 Total Minutes 975,000 32,500 CSR Cost (minutes) .28 .28 Cost of Fund Inquiry/Donation 273,000 $ 9,100 Annual Renewal Cost $282,100 One time cost for revising renewal form $ 200 One time cost for mailing $ 6,750 One time cost for internal accounting changes $ 800 TOTAL COST FIRST YEAR $289,850 TOTAL COST THEREAFTER $282,900



Memorandum






    Person submitting Fiscal Note: Jerry L. Conrad
    Email Address: Jerry.L.Conrad@wv.gov