FISCAL NOTE



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 FY08, the Division of Natural Resources collected $21,229,122 in user fees at state parks, state forests, and other recreational facilities managed by the Parks and Recreation Section. Of this total, $4,770,553 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.21% of the time. Therefore, $1,488,741.66 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 $148,874.17. In addition, $1,761,829 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 69.31% of the time. The revenue from camping fees paid by West Virginia residents is $1,223,123.68. A 10% reduction in this amount would result in a loss of $122,112.37. A total of $5,189,791 was collected in lodge room sales. From the daily tabulation of folios, it is known that 38.83% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,015,195.85 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $201,519.59. Subtracting the above amounts from the grand total revenue of $21,229,122 leaves a balance of $9,506,949. 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 $6,179,516.85. If this were reduced by 10%, the loss in revenue would be $617,951.69. To summarize (assuming a July 1, 2009 effective date): Revenue Source FY08 Revenue from WV Residents 10% Reduction if Bill Were Enacted Total Loss of Revenue Cabin Rentals $1,488,741.66 $(148,874.17) $(148,874.17) Camping $1,221,123.68 $(122,112.37) $(122,112.37) Lodge Room Rentals $2,015,195.85 $(201,519.59) $(201,519.59) Day-Use Fees (golfing, swimming, etc.) $6,179,516.85 $(617,951.69) $(617,951.69) TOTAL $(1,090,457.82)



Fiscal Note Detail


Effect of Proposal Fiscal Year
2009
Increase/Decrease
(use"-")
2010
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 -1,090,457 -1,090,457
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 -1,090,457 -1,090,457


Explanation of above estimates (including long-range effect):


In FY08, the Division of Natural Resources collected $21,229,122 in user fees at state parks, state forests, and other recreational facilities managed by the Parks and Recreation Section. Of this total, $4,770,553 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.21% of the time. Therefore, $1,488,741.66 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 $148,874.17. In addition, $1,761,829 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 69.31% of the time. The revenue from camping fees paid by West Virginia residents is $1,223,123.68. A 10% reduction in this amount would result in a loss of $122,112.37. A total of $5,189,791 was collected in lodge room sales. From the daily tabulation of folios, it is known that 38.83% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,015,195.85 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $201,519.59. Subtracting the above amounts from the grand total revenue of $21,229,122 leaves a balance of $9,506,949. 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 $6,179,516.85. If this were reduced by 10%, the loss in revenue would be $617,951.69. To summarize (assuming a July 1, 2009 effective date): Revenue Source FY08 Revenue from WV Residents 10% Reduction if Bill Were Enacted Total Loss of Revenue Cabin Rentals $1,488,741.66 $(148,874.17) $(148,874.17) Camping $1,221,123.68 $(122,112.37) $(122,112.37) Lodge Room Rentals $2,015,195.85 $(201,519.59) $(201,519.59) Day-Use Fees (golfing, swimming, etc.) $6,179,516.85 $(617,951.69) $(617,951.69) TOTAL $(1,090,457.82)



Memorandum






    Person submitting Fiscal Note: Keith Wilson
    Email Address: keithwilson@wvdnr.gov