FISCAL NOTE
FUND(S):
3200
Sources of Revenue:
Special Fund
Legislation creates:
A New Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill establishes a new program for the Division of Natural Resources and a new hunting stamp as a funding vehicle for that program. The bill would generate license revenue in the first year and thereafter, but, because none of the revenue may be used to administer the program, the bill will greatly increase the Division’s unfunded costs at a time when its human and financial resources are already stressed. Because much of the new revenue must be spent for activities that will not demonstrably benefit hunters who would be required to purchase the stamp, participation rates in upland bird hunting and the accrual of hunting license revenue from those activities would decline in the future as a result of the bill. The net fiscal impact of the bill will be that the Division will be required to annually absorb $100,000 of additional costs at a time when its human and financial resources are already under stress.
Estimated costs include:
1 biologist + overhead = $50,000 annually
Vehicle and other equipment = $30,000 first year, $5,000 thereafter
Travel, supplies, and other current expenses = $20,000 annually
Purchase of upland game birds = 4,000 birds X $25 = $100,000
Development of a bird holding facility = $100,000 first year
Repairs and alterations to holding facility = $10,000 annually thereafter
Estimated revenue from stamp sales:
First year = 10,000 hunters X $20 = $200,000
Thereafter (because of participation rate declines) = $150,000
The DNR’s major concern with the bill is it proposes to address a statewide problem of habitat loss for upland game birds with a dedicated hunting stamp for upland bird hunters that would fund a small-scale habitat improvement and propagation effort. Hunters buying these stamps will see little demonstrable effect of their stamp purchases. The probable result will be a decline in hunter participation in upland bird hunting with resulting declines in license revenue. Finally, because the bill prohibits the DNR from using any of the stamp revenues to administer the program, implementation of the habitat improvement and propagation activities will greatly increase the agency’s unfunded costs at a time when its human and financial resources are already stressed.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2005
Increase/Decrease
(use"-") |
2006
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
300,000 |
185,000 |
| Personal Services |
0 |
50,000 |
50,000 |
| Current Expenses |
0 |
120,000 |
120,000 |
| Repairs and Alterations |
0 |
0 |
10,000 |
| Assets |
0 |
30,000 |
5,000 |
| Other |
0 |
100,000 |
0 |
| 2. Estimated Total Revenues |
0 |
200,000 |
150,000 |
Explanation of above estimates (including long-range effect):
Estimated costs include:
1 biologist + overhead = $50,000 annually
Vehicle and other equipment = $30,000 first year, $5,000 thereafter
Travel, supplies, and other current expenses = $20,000 annually
Purchase of upland game birds = 4,000 birds X $25 = $100,000
Development of a bird holding facility = $100,000 first year
Repairs and alterations to holding facility = $10,000 annually thereafter
Estimated revenue from stamp sales:
First year = 10,000 hunters X $20 = $200,000
Thereafter (because of participation rate declines) = $150,000
Memorandum
The DNR’s major concern with the bill is it proposes to address a statewide problem of habitat loss for upland game birds with a dedicated hunting stamp for upland bird hunters that would fund a small-scale habitat improvement and propagation effort. Hunters buying these stamps will see little demonstrable effect of their stamp purchases. The probable result will be a decline in hunter participation in upland bird hunting with resulting declines in license revenue. Finally, because the bill prohibits the DNR from using any of the stamp revenues to administer the program, implementation of the habitat improvement and propagation activities will greatly increase the agency’s unfunded costs at a time when its human and financial resources are already stressed.
Person submitting Fiscal Note: Keith Wilson
Email Address: kwilson@dnr.state.wv.us