This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0840 - Relating to the Commodity Councils Merchandising Fund
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 3607-03
BILL NO. SCS for SB 840
SUBJECT: Agriculture and Animals
TYPE: Original
DATE: March 30, 1998
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| General Revenue | ($84,377) | ($103,939) | ($106,656) |
| Commodity Council Merchandising Fund* | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
($84,377) | ($103,939) | ($106,656) |
*Savings and losses of approximately $8,000,000 net to zero.
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 4 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Agriculture (AGR) assume this proposal would have a fiscal impact on general revenue because the funding source for existing employees (2.5 FTE) and administrative expenses incurred tracking the Commodity Councils' business would be transferred from the Commodity Council Merchandising Fund to general revenue. Expected costs to General Revenue would be $84,377 in FY99; $103,939 in FY00; and $106,656 in FY01.
Currently all monies collected for the Commodity Councils Merchandising Fund are considered a part of Total State Revenues. This proposal would transfer monies currently in the Commodity Councils Merchandising Fund to special funds set up by the Department of Agriculture. These funds would not be considered state funds. The funds would be held in trust by the director of the Department of Agriculture for the benefit of the commodity merchandising councils. The AGR would distribute all monies deposited in the funds during the preceding month to the treasurers of the appropriate councils.
Officials from the Department of Revenue and the Attorney General's Office stated this proposal would not fiscally impact their agencies.
The Office of the State Treasurer (STO) assumes that any resulting costs could be absorbed with current appropriations and therefore would have no fiscal impact on the STO.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| COMMODITY COUNCIL | |||
| MERCHANDISING FUND | |||
| Department of Agriculture - Savings | |||
| Personal Service (2.5 FTE) | $50,938 | $62,680 | $64,247 |
| Fringe Benefits | $14,278 | $17,569 | $18,008 |
| Expense and Equipment | $19,161 | $23,690 | $24,401 |
| Total Savings - AGR | $84,377 | $103,939 | $106,656 |
| Department of Agriculture - Savings | |||
| Discontinued Distributions | $7,915,623 | $7,896,061 | $7,893,344 |
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (continued) | (10 Mo.) | ||
| Department of Agriculture - Revenue Loss | |||
| Fees | ($8,000,000) | ($8,000,000) | ($8,000,000) |
| NET FISCAL IMPACT TO | |||
| COMMODITY COUNCIL | |||
| MERCHANDISING FUND | $0 | $0 | $0 |
| GENERAL REVENUE | |||
| Department of Agriculture - Cost | |||
| Personal Service (2.5 FTE) | ($50,938) | ($62,680) | ($64,247) |
| Fringe Benefits | ($14,278) | ($17,569) | ($18,008) |
| Expense and Equipment | ($19,161) | ($23,690) | ($24,401) |
| Total Cost - AGR | ($84,377) | ($103,939) | ($106,656) |
| NET FISCAL IMPACT TO | |||
| GENERAL REVENUE FUND | ($84,377) | ($103,939) | ($106,656) |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Small Business | |||
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal would clarify that monies in the Commodity Councils Merchandising Fund are not to be considered state funds when calculating total state revenues. Further, the Director of
Agriculture is given authority to manage all such funds.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This proposal would reduce Total State Revenues.
SOURCES OF INFORMATION
Department of Revenue
Department of Agriculture
Attorney General's Office
State Treasurer's Office
Jeanne Jarrett, CPA
Director
March 30, 1998