FISCAL NOTE

Date Requested: February 19, 2018
Time Requested: 09:16 AM
Agency: Agriculture, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2670 Introduced SB557
CBD Subject: Agriculture


FUND(S):

Senior Farmers Market Nutrition Fund

Sources of Revenue:

General Fund

Legislation creates:

Creates New Expense, Creates New Fund: Senior Farmers' Market Nutrition Program Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    SB557 provides for state funding to supplement annual federal Senior Farmers Market Nutrition Program (SFMNP) funding provided by USDA. As written, the legislation would allow each senior to have $50 in coupons. Presently, existing USDA funds are used to provide each senior $28 worth of vouchers, with the 2018 SFMNP season starting June 1. By adding $22 to the existing $28 to equal $50, state resources of $369,600 would be required to cover the increase for the 16,800 anticipated participants. Additionally, other fees noted below would be required to cover the increased administrative workload.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 55,000 342,100 397,100
Personal Services 5,000 5,000 10,000
Current Expenses 50,000 337,100 387,100
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


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


    The SFMNP voucher season previously started on July 1. For 2018, it will begin on June 1, in order to give seniors an additional 30 days' access to fresh produce. As such, the 2018 season would require an estimated $55,000 prior to the end of FY 2018 to cover initial voucher printing, redemption, and staff distribution costs.
    
    In subsequent years, to maintain an ongoing program at this level, an estimated $397,100 would be required, including $387,100 for voucher printing, redemption, and bank fees, as well as $10,000 in personnel time for distribution and other program administration tasks (such as preparing new draft of vouchers and sending to printer, receiving vouchers and sorting for distribution by counties, then distributing to counties). It is also anticipated the increase in funding will increase number of program participants. Should the number of participants served increase to an estimated 22,000, then state funding of up to $500,000 would be required to cover all expenses.



Memorandum


    Vouchers for 2018 have already been ordered in booklets of $28. Technically, we cannot reach $50 for the current season. We could do seven (7) $3 vouchers in a booklet ($21 total) to equal a per-participant amount of $49. Under the current printing specifications, we can only have a certain number of pages in a book for the vouchers to be automated by machine; if more, the booklets have to be hand-stapled which would increase the cost of printing. Participants would have to be issued two separate booklets, one $28 and one $21 by the local agency and would have to make sure they are kept separate for 2018. For 2019, the increase would require either each participate getting two booklets of $25 thereby making them $5 each (which the participants do not prefer) or having a booklet printed with many more pages at an increased printing cost. Additional program funding may likely bring an increase in participants wanting vouchers and would require printing more in 2019. Should the program grow substantially and federal funds not increase, additional state funds would be required.



    Person submitting Fiscal Note: Alan Clemans, on behalf Sandra Gillispie, CFO
    Email Address: sgillispie@wvda.us