FISCAL NOTE
FUND(S):
West Virginia Firefighters Game Fund
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.
House Bill 2993 would create new section 29-22-9b modeled after current section 29-22-9a. [Section 9a created the veterans instant lottery ticket with all net profit from the special game earmarked for veterans nursing facilities.]
New section 9b would create a special firefighters scratch-off lottery game with all net profits from the special game earmarked for paid fire departments and volunteer fire departments.
A new fund - the West Virginia Firefighters Game Fund - would be created. The State Fire Commission would administer the fund.
Net profits would be split equally between (a)higher education support for volunteer firefighters in the form of payments for tuition, books and school fees, and (b) contributions to firefighter pension and relief funds of Classes I, II and III cities that have their own pension systems created pursuant to article 22, chapter 8 of the West Virginia Code.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2005
Increase/Decrease
(use"-") |
2006
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
187,000 |
374,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
45,000 |
90,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
142,000 |
284,000 |
| 2. Estimated Total Revenues |
0 |
310,000 |
620,000 |
Explanation of above estimates (including long-range effect):
Based upon a review of one-year sales and revenue performance of two recent average one dollar instant lottery tickets, the lottery projects a one-year potential revenue for the new fund of $600,000.
Continuing years will be significantly less and may not meet the initial annual revenues of $600,000. These projections are based upon the issue of two, one-dollar games per year.
Two games per year based on average sales, costs and net revenues:
Number of tickets ordered for one game: 1,670,000
Tickets sold before game end: $1,420,000
Printing cost per game: $45,000
Retail Sales Commissions @ 7%: $99,400
Vendor fee @3%: $42,600
Cost of Prizes won by players: $923,000 $1,110,000 $310,000
Times two games per year = $620,000
Memorandum
A proceeds-specific ticket themed with volunteer firefighters will have a negative impact upon the Veterans Cash ticket as many persons who are involved in volunteer firefighting are in some way associated with military endeavors (reserves, National Guard, retired military, relative of veteran, etc.)
West Virginia's veteran population may very well perceive a firefighters' instant game as a threat to their funding for a skilled nursing home and not purchase the ticket with the same frequency as they do the Veterans' Cash ticket.
A revenue-dedicated instant lottery ticket must have a loyal constituency base to which the ticket will be repeatedly sold. The number of veterans and their families residing in West Virginia has ensured the revenue projections of the Veterans Cash tickets, over the past several years. It is less likely that the number of firefighters and their families in West Virginia can comprise an adequate constituency to sustain a profitable instant lottery ticket.
Person submitting Fiscal Note: John Melton
Email Address: jmelton@wvlottery.com