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