|Date Requested:March 13, 2013
Time Requested:12:51 PM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
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.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||289,850||289,850||282,900|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
Total Annual Renewals 1,300,000
Inquiries (15%) Actual Contributions (5%)
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
One time cost for internal
accounting changes $ 800
TOTAL COST FIRST YEAR $289,850
TOTAL COST THEREAFTER $282,900