Fiscal Note & Local Impact Statement
127 th General Assembly of Ohio
|
STATE FUND |
FY 2008 |
FY 2009 |
FUTURE YEARS |
|
State Bureau of Motor
Vehicles Fund (Fund 4W4) |
|||
|
Revenues |
Potential gain, |
Potential gain, |
|
|
Expenditures |
Potential increase, |
Potential increase, |
Potential increase, |
|
License Plate Contribution
Fund (Fund 5V1) |
|||
|
Revenues |
Potential gain, |
Potential gain, |
Potential gain, |
|
Expenditures |
Potential increase, |
Potential increase, |
Potential increase, |
|
Highway Operating Fund
(Fund 002) |
|||
|
Revenues |
- 0 - |
- 0 - |
- 0 - |
|
Expenditures |
Potential minimal increase
to install and maintain markers |
Potential minimal increase to install and maintain markers |
Potential minimal increase to install and maintain markers |
Note: The state
fiscal year is July 1 through June 30.
For example, FY 2008 is July 1, 2007 – June 30, 2008.
·
State Bureau of Motor Vehicles Fund (Fund 4W4). The fiscal effect of the bill's license plate provisions on the
state, in particular the Department of Public Safety's Bureau of Motor Vehicles
(BMV) and its Fund 4W4 will be dependent on the number of "Ohio National
Guard Retired," "U.S. Paratrooper," "Civil Air
Patrol," and "Support Our Troops" license plates actually
issued. As of this writing, LSC fiscal
staff is unable to estimate the demand and production costs for these license
plates, or the additional revenues that may be collected. This means that the potential annual magnitude
of the gain in BMV's Fund 4W4 license plate revenues and any related increase
in operating expenses is uncertain.
·
License Plate Contribution Fund (Fund 5V1). The bill requires the Registrar to collect a contribution of $25
when issuing "Support Our Troops" license plates, and to deposit all
such contributions in the state treasury to the credit of the existing License
Plate Contribution Fund (Fund 5V1) for payment to Support Our Troops,
Incorporated, a national nonprofit corporation. As LSC fiscal staff is unable to estimate the demand for these
license plates, the amount of money that would be collected and paid annually
to Support Our Troops, Incorporated is uncertain.
·
Highway Operating Fund (Fund 002). The Ohio Department of Transportation (ODOT) may experience
minimal costs to install suitable markers along the designated portions of
various state and U.S. highways listed in the bill. Future maintenance costs may result if the markers are damaged.
|
LOCAL
GOVERNMENT |
FY 2007 |
FY 2008 |
FUTURE YEARS |
|
|
Counties, Municipalities,
and Townships (redistributed Public Safety revenues) |
||||
|
Revenues |
Potential minimal effect |
Potential minimal effect |
Potential minimal effect |
|
|
Expenditures |
- 0 - |
- 0 - |
- 0 - |
|
|
Certain Municipalities
(those whose boundaries include bill's designated highways) |
||||
|
Revenues |
- 0 - |
- 0 - |
- 0 - |
|
|
Expenditures |
Potential minimal increase
to install and maintain markers |
Potential minimal increase to install and maintain markers |
Potential minimal increase to install and maintain markers |
|
Note: For most local governments, the fiscal year is the calendar year. The school district fiscal year is July 1 through June 30.
·
Redistributed Public Safety revenues. Whenever the state's BMV Fund 4W4 cash flow changes, local
governments may also be affected in some manner. As BMV's expenses or revenue sources increase or decrease, moneys
available for redistribution to local governments may increase or decrease. As of this writing, however, the manner in
which the bill may affect that cash flow dynamic, if at all, is uncertain. That said, LSC fiscal staff has not gathered
any information suggesting that the potential magnitude of the annual fiscal
effect on any local government would be more than minimal, if that. In this context, "minimal" means
an estimated annual revenue gain or loss of:
(1) no more than $5,000 for any affected county, city, or township with
a population of 5,000 or more, and (2) no more than $1,000 for any affected
village or township with a population of less than 5,000.
·
Municipal signage costs. If the Ohio
Department of Transportation chooses not to erect the markers, municipalities
may install markers on the designated portions of various state and U.S.
highways listed in the bill at a minimal cost.
Future maintenance costs may result if the markers are damaged.
|
|
Overview
For the purposes of this fiscal analysis, the bill most notably:
· Permits an owner or lessee of certain cars or vehicles to apply to the state's Registrar of Motor Vehicles for issuance of "Ohio National Guard Retired," "U.S. Paratrooper," "Civil Air Patrol," and "Support Our Troops" license plates.
· Requires the Registrar to collect an additional fee of $10 to compensate the Bureau of Motor Vehicles (BMV) for the additional services required in the issuing of "Support Our Troops" and "Civil Air Patrol" license plates, and to deposit all such fees in the state treasury to the credit of the existing State Bureau of Motor Vehicles Fund (Fund 4W4).
· Requires the Registrar to collect a contribution of $25 when issuing "Support Our Troops" license plates, and to deposit all such contributions in the state treasury to the credit of the existing License Plate Contribution Fund (Fund 5V1) for payment to Support Our Troops, Incorporated, a national nonprofit corporation.
· Exempts "Ohio National Guard Retired" and "U.S. Paratrooper" license plates from both the minimum registration requirement and the termination and revival procedures.
· Specifies that the Ohio Pet Fund (a nonprofit corporation), rather than the Pets Program Funding Board, receive the contributions from the Pets license plate.
· Designates several portions of state and U.S. highways an official name and allows the Director of Transportation to erect suitable markers.
Certain special license plates
State fiscal effects
The fiscal effect of the
bill's license plate provisions on the state, in particular the Department of
Public Safety's Bureau of Motor Vehicles and its Fund 4W4, as well as the
License Plate Contribution Fund (Fund 5V1), will be dependent on the number of
"Ohio National Guard Retired," "U.S. Paratrooper,"
"Civil Air Patrol," and "Support Our Troops" license plates
actually issued. As of this writing,
LSC fiscal staff is unable to estimate the demand and production costs for
these license plates, or the additional revenues that may be collected. This means that the potential annual
magnitude of the gain in BMV's Fund 4W4 license plate revenues and any related
increase in operating expenses, as well as the amount of moneys that would be
collected and paid annually to Support Our Troops, Incorporated, is uncertain.
Local fiscal effects
Redistributed Public Safety
revenues. Whenever the BMV Fund 4W4 cash flow changes,
local governments may also be affected in some manner. Most collected local and state motor vehicle
license taxes are deposited into a holding account within the Department of
Public Safety. Monthly, an assessment
of Fund 4W4 occurs and cash is transferred from the holding account to Fund 4W4
in order to cover BMV's monthly operating expenses. Any remaining funds in the holding account are then forwarded to
local governments (counties, municipalities, and townships) to use for
transportation related needs such as roads and bridges. As BMV's expenses or revenue sources
increase or decrease, moneys available for redistribution to local governments
may increase or decrease.
As of this writing, however,
the manner in which the bill may affect that cash flow dynamic, if at all, is
uncertain. That said, LSC fiscal staff
has not gathered any information suggesting that the potential magnitude of the
annual fiscal effect on any local government would be more than minimal, if that. In this context, "minimal" means an
estimated annual revenue gain or loss of:
(1) no more than $5,000 for any affected county, city, or township with
a population of 5,000 or more, and (2) no more than $1,000 for any affected
village or township with a population of less than 5,000.
Pets license plate contributions
State
and local fiscal effects
Amended Substitute House
Bill 406 of the 125th General Assembly created the Pets license plate and
directed that contributions for issuance of the license plate be deposited in the License
Plate Contribution Fund for distribution to the Pets Program Funding Board,
which consists of seven members with specific qualifications who are appointed
by the Ohio Pet Fund, a nonprofit corporation.
This
bill – H.B. 273 – requires that the Registrar of Motor Vehicles pay the
contributions from Pets license plates to the Ohio Pet Fund, rather than to the
Pets Program Funding Board, and makes other language revisions in the Pets
license plate contribution distribution provisions. From LSC fiscal staff's perspective, these changes to existing
law relative to Pets license plate contributions appear to be largely technical
in nature and thus would have no discernible fiscal impact on the state or its
political subdivisions.
Highway signage
The Ohio Department of
Transportation (ODOT) may experience minimal costs to install suitable markers,
such as plaques or signs, along the designated portions of SR-11, I-71, SR-2,
SR-59, U.S. 30, and SR-660. Current costs to manufacture, install, and maintain
a single set of memorial plaques or markers at one location is estimated to be
a few hundred dollars, more or less, depending on the size of the marker(s),
equipment and materials needed to install them, and the frequency of
maintenance.
When a highway or bridge is
designated as a memorial, the Department's policy is to first install a
memorial plaque in a rest area, scenic overlook, recreational area, or other
appropriate location.[1] If installation of a plaque is not
practical, a marker is installed along the highway or near the bridge
instead. At one location two plaques or
two markers are usually installed, one in each direction.
If the Department chooses
not to install the plaques or markers, municipalities may install such markers
on the designated portions of SR-11, I-71, SR-2, SR-59, U.S. 30, and SR-660
within municipal boundaries at their expense.
Costs to municipalities are likely to be minimal and estimated to be
similar to those incurred for the state as described above.
LSC fiscal staff: Joseph Rogers, Senior Budget Analyst
Jonathan Lee, Senior Budget Analyst