Reimbursement for livestock.

12LSO-0061.C1

                            

FISCAL NOTE

 

This bill contains an appropriation of $500,000 from the GENERAL FUND to the proposed Aninal Reimbursement Program Account created in the bill.

 

DETAIL OF APPROPRIATION

Agency #:  051     Agency Name:  Livestock Board

Unit:  0201 - Wyoming Livestock Board Animal Health

 

EXPENDITURE BY SERIES AND YEAR       FY 2012         FY 2013         FY 2014

0200  Supportive Services Costs                         $10,000                

0900  Contractual Services Costs                       $100,000        $100,000

 

Total Expenditure Per Year:                            $110,000        $100,000      

 

Grand Total Expenditure:              $210,000

Total Appropriated to Agency:         $500,000

Total Appropriated by Fund

GENERAL FUND             :            $500,000

 

Description of Appropriation:

Funds will be used to reimburse livestock owners for the fair market value of animals removed from the herd for disease control and/or diagnostic evaluation. Market value would be determined either by appraisal or average pricing for like animals at Wyoming livestock auction markets during the week the animal is removed. The payment would be calculated based on fair market value minus salvage value and minus any indemnity payment made by the federal government (U.S. Dept. of Agriculture/Animal & Plant Health Inspection Service). In addition, the owner would be paid documented transportation and disposal costs of getting the animal to market, slaughter, or disposal (landfill, burial, etc.).

 

Assumptions:

Expenditures will depend on the number of disease cases requiring quarantine and removal of livestock. The state has had an increase in the number of Brucellosis cases in recent years and in the number of reactor (infected) animals required to be removed. The Board expects that case numbers may increase, which will increase staff workload to respond and process cases. The above estimate reflects expenditures to reimburse livstock owners of $100,000 per year as a best guess, howvever actual expeditures could be more or less depending on the number of cases. Under extreme circumstances, it is possible that the entire $500,000 appropriation could be expended in one year.

 

 

 

 

 

 

 

 

 

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This bill creates the Animal Reimbursement Program Account and requires interest on the funds in the Account to be credited to the Account. The amount of that interest is indeterminable, since it is unknown how quickly or how much of the appropriated funds will be expended.

 

On its own, this bill has no significant fiscal or personnel impact on the State Auditor's Office. However, passage of multiple bills of this type could have a cumulative administrative impact on the agency. Due to the recent adoption of Government Accounting Standards Board (GASB) statement no. 54, accounts without a dedicated revenue stream must now be combined and reported with the General Fund for financial reporting purposes. Since this account is credited with interest on the account balance, the State Auditor's Office will be required to manually track the fund balance for proper inclusion in the State's Comprehensive Annual Financial Report (CAFR).

 

 

Prepared by:  Michael Swank, LSO           Phone:  777-7881

(Information provided by Dr. Jim Logan, Livestock Board, phone 777-7515;

Vicci Colgan / Tom Rowe, State Auditor's Office, phone 777-7831)