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 FY2012, the Division of Natural Resources collected $21,708.177 in user fees at state parks, state forests, and other recreation facilities managed by the Parks and Recreation Section. Of this total, $4,964,781 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.81% of the time. Therefore, $1,579,296.84 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 $157,929.68. In addition, $1,931,063 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 71.52% of the time. The revenue from camping fees paid by West Virginia residents is $1,381,096.26. A 10% reduction in this amount would result in a loss of $138,109.63. A total of $5,975,249 was collected in lodge room sales. From the daily tabulation of folios, it is known that 41.26% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,465,387.74 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $246,538.77. Subtracting the above amounts from the grand total revenue of $21,708,177 leaves a balance of $8,837,084. 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 $5,744,104.60. If this were reduced by 10%, the loss in revenue would be $574,410.46. To summarize: Revenue Source FY12 Revenue from W. Va. Residents 10% Reduction if Bill were Enacted Total Loss of Revenue Cabin Rentals $1,579,296.84 $(157,929.68) $(157,929.68) Camping $1,381,096.26 $(138,109.63) $(138,109.63) Lodge Room Rentals $2,465,387.74 $(246,538.77) $(246,538.77) Day Use Fees (golfing, swimming, etc.) $5,744,104.60 $(574,410.46) $(574,410.46) TOTAL $(1,116,988.54)



Fiscal Note Detail


Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 -1,116,988 -1,116,988
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 -1,116,988 -1,116,988


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


In FY2012, the Division of Natural Resources collected $21,708.177 in user fees at state parks, state forests, and other recreation facilities managed by the Parks and Recreation Section. Of this total, $4,964,781 came from cabin rentals. On average, cabins were rented by West Virginia residents 31.81% of the time. Therefore, $1,579,296.84 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 $157,929.68. In addition, $1,931,063 was collected in campsite rental fees throughout the Parks and Recreation system. Campsites are rented by West Virginia residents 71.52% of the time. The revenue from camping fees paid by West Virginia residents is $1,381,096.26. A 10% reduction in this amount would result in a loss of $138,109.63. A total of $5,975,249 was collected in lodge room sales. From the daily tabulation of folios, it is known that 41.26% of all lodge rooms are sold to West Virginia residents. Applying this percentage to the foregoing amount means that $2,465,387.74 was paid by West Virginia residents for lodge rooms. A 10% reduction would result in a loss of $246,538.77. Subtracting the above amounts from the grand total revenue of $21,708,177 leaves a balance of $8,837,084. 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 $5,744,104.60. If this were reduced by 10%, the loss in revenue would be $574,410.46. To summarize: Revenue Source FY12 Revenue from W. Va. Residents 10% Reduction if Bill were Enacted Total Loss of Revenue Cabin Rentals $1,579,296.84 $(157,929.68) $(157,929.68) Camping $1,381,096.26 $(138,109.63) $(138,109.63) Lodge Room Rentals $2,465,387.74 $(246,538.77) $(246,538.77) Day Use Fees (golfing, swimming, etc.) $5,744,104.60 $(574,410.46) $(574,410.46) TOTAL $(1,116,988.54)



Memorandum


If further information is needed regarding this fiscal note, please contact: Robert Beanblossom, District Administrator Division of Natural Resources Parks & Recreation Section 324 4th Avenue South Charleston, WV 25303-1228 304.558.2764 office 304.389.5041 cell 304.558.0077 fax



    Person submitting Fiscal Note: Robert.L.Beanblossom
    Email Address: Robert.L.Beanblossom@wv.gov