FISCAL NOTE
FUND(S):
Fund(s) would need to be created or transferred.
Sources of Revenue:
Other Fund Gen, Spec or Other
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The bill proposes a complete transfer of the Donated Foods Program from the Department of Agriculture to the Department of Military Affairs and Public Safety (DMAPS). Thus, it is not a new program. The Department of Agriculture's General Revenue Fund 0131's Activity numbers 363 Donated Foods Program and 969 WV Good Banks only, are dedicated to the Donated Foods Program. Only those Activity numbers could be re-designated to a different fund. The Special Revenue Fund number 1446 is dedicated to the Donated Foods Program and could be re-designated as well. the Federal Revenue Fund number 8736 is the Department of Agriculture's consolidated account and could not be re-designated. The only segment of that account that is used for the Donated Foods Program is the sub-org numbers 4920 and 4922.
The passage of HB 4027 would have a detrimental impact on the Donated Foods Program for an indefinite period of time. DMAPS cannot forecast specific information on the financial impact that the transfer would have on the Department of Agriculture and thus the State's financial requirements. However, anytime a program is moved away from experienced management and administrative personnel that are intimately familiar with program specific compliance issues, processes and operations to an agency that will not have this seasoned expertise to carry it forward, there will inevitably be additional costs incurred and operational efficiency lost during the transition and for an extended period of time thereafter due to the learning curve necessary to understand and properly administer the complexities of the Donated Foods Program.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
3,602,500 |
0 |
| Personal Services |
0 |
771,000 |
0 |
| Current Expenses |
0 |
2,640,000 |
0 |
| Repairs and Alterations |
0 |
18,000 |
0 |
| Assets |
0 |
115,500 |
0 |
| Other |
0 |
58,000 |
0 |
| 2. Estimated Total Revenues |
0 |
3,610,000 |
0 |
Explanation of above estimates (including long-range effect):
The figures above are indeed estimates gleaned from information taken from the Department of Agriculture's website and from that submitted by the Department of Agriculture with regard to this Fiscal Note request. It would be hard for DMAPS to give an accurate statement about any anticipated financial impact concerning the move of this program due to its unfamiliarity with the operation of such a program. Also realized is the fact that the Department of Agriculture pays some expenses from certain accounts (unnamed) that are not supported by the Donated Foods Program revenues -- a fact that would require additional dollars (not included in the above estimates) be placed in DMAPS for program operation.
Memorandum
In reviewing the information submitted by the Department of Agriculture, much would need to be accomplished before the program could be transferred from one department to the other by the July 1, 2008 effective date listed in the bill. Additional research would have to be done by DMAPS in preparation of the programs receipt.
Person submitting Fiscal Note: Barbara S. Wimer
Email Address: bwimer@wvdmaps.gov