FISCAL NOTE
FUND(S):
New
Sources of Revenue:
Special Fund
Legislation creates:
A New Program,A New Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill creates a new program that will result in substantial cost to state government with limited revenue through pet food registration fees to support the program. Although, the program is intended to be self supporting from increases in pet food fees, there will be one time costs of approximately $50,000 for the start up of the program that will have to come from state funds if the program is implemented before a reserve of funding from the fees is accumulated to fund the start up cost of the program. The program will require the addition of 1 new employee to perform the administrative activities involved. In addition to the one-time start up costs, there will be additional on-going operational costs of approximately $54,000 annually to cover personal services, benefits and supplies. This does not include any amount for reimbursement to the veterinarians who will be performing the services. We have no way of determining an estimate for those costs since we do not know how many surgeries or vaccinations or the amount of the charges that may be submitted for reimbursement. We do not anticipate that the income from the fee increases will be sufficient to fully cover the on-going cost of the program.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2012
Increase/Decrease
(use"-") |
2013
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
104,000 |
54,000 |
| Personal Services |
0 |
47,000 |
47,000 |
| Current Expenses |
0 |
52,000 |
7,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
5,000 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
93,100 |
93,100 |
Explanation of above estimates (including long-range effect):
Start up costs will include one-time expenditures of $40,000 for enhancements to existing computer programs to accommodate the required tracking; $5,000 for the purchase of computer equipment plus $5,000 to furnish and equip an office for the program administrator. On-going costs will consist of $47,000 to cover personal services and benefits for the new employee plus $7,000 for consumable supplies and other routine operations expense. The greatest component of on-going cost is not included in these estimates and that is the reimbursements that will be due to the veterinarians who provide the surgical and immunization services. We do not have any data with which to develop an estimate of how many services may be provided or the cost of those services. We believe that this will be the largest component of expense to the program. Program revenue from the fee increases is estimated at $93,100. In the first year, program costs exceed revenues by $10,900 with no reimbursements to vets. After the first year, revenues would only be sufficient to cover administrative costs and approximately $39,100 for reimbursement for veterinarian services.
Memorandum
The amount and nature of the documentation required to operate the program in accordance with the proposed legislation is time consuming for both the participating veterinarians and the Department of Agriculture. It is uncertain whether there would be widespread participation by state vets due to the additional documentation that they would be required to collect and submit for reimbursement from the program. Also, given that we do not estimate that program revenue would be sufficient to fully cover reimbursement to the participating veterinarians, this could create ill-will with a valued component of the agricultural community.
Person submitting Fiscal Note: Sandra Gillispie
Email Address: sgillispie@wvda.us