This financial overview covers the state fiscal year 2012-13 which ran from July 1, 2012 through June 30, 2013. Federal grants run on a different cycle (October 1, 2012 through September 30, 2013) than the state fiscal year; this report covers those portions of the federal grants that occurred during the state fiscal year. The following flowchart depicts the revenue and expenditure streams related to industry fees collected by the ACM Bureau. The five tables identified within the flowchart are further explained below. The Environmental Fund supports Clean Sweep grants to local governments and the revenue and expenditures for Clean Sweep grants are not included in any of the five tables.
The primary source of funding for the ACM Bureau is industry fees for licenses, permits, registrations and tonnage fees under the feed, fertilizer, soil and plant additive, lime, and pesticide programs. In addition, the U.S. Environmental Protection Agency and the U.S. Food and Drug Administration also provide some funding to cover annual program expenses. The ACM Bureau recognizes this important partnership with industry and the federal government and works hard to maximize the use of this funding for the benefit of the industry, consumers, and the environment.
Agrichemical Management Fund (ACM Fund)
The ACM Fund is the primary source of funding for the regulatory, investigative and enforcement aspects of the ACM Bureau. Table 1 shows the money collected and deposited into the ACM Fund from industry fees for licenses, permits, registrations and tonnage fees under the feed, fertilizer, soil and plant additive, lime, and pesticide programs.
FY 2012-13 Other ACM Program Revenues
In addition to the industry fees, the ACM programs are also supported by grants from the U.S. Environmental Protection Agency (EPA) and the U.S. Food and Drug Administration (FDA)
The EPA pesticide grant is the largest grant and is for implementing, investigating and enforcing federal pesticide use laws and regulations. Our cooperative efforts with FDA provide funds for inspection of certain higher risk medicated feed producing establishments and allows for monitoring of the affected industries, including feed manufacturers, ingredient transporters and ruminant animal feeders, which are all regulated by the Bovine Spongiform Encephalopathy (BSE) feed ban. Table 2 is a summary of the total ACM revenues collected to operate the programs within the ACM bureau.
Agricultural Chemical Cleanup Program Fund (ACCP Fund)
The ACCP Fund is used to make reimbursement payments for agricultural chemical spill cleanups. Table 3 shows the money collected and deposited into the ACCP Fund from industry surcharges. In more recent budget bills, additional appropriations have been added to this fund for Non-ACCP/ACM programs.
In addition to the fees paid to the ACM and ACCP Funds, the ACM Bureau collects fees that are directed solely to other state agencies or programs. Table 4 shows the fees that are collected from industry used by Non-ACM programs. Table 5 shows how much money is collected for each Non-ACM program.
Direction for the Coming Year
The FY 13-15 budget had numerous account adjustments that will take effect over the next several years. Grazing grants are no longer funded by the ACM Fund. The funding for Discovery Farms and the Division of Animal Health positions moved from the ACCP Fund to the ACM Fund. Both the ACM and ACCP Fund had fee reductions. The ACM Fund revenues for fertilizer tonnage were reduced by 7¢/ton and moved to fund UW research on fertilizer. The ACCP Fund revenues were reduced by approximately 20%, from surcharges to certain licenses and pesticide product fees.
As shown in Table 1, the ACM fund had a balance remaining at the end of the fiscal year. Over the years, similar balances have been lapsed and used for purposes other than ACM programs. As a result, this past year the department met with industry associations and began discussions about using some of this balance for updating outdated IT systems within the ACM Bureau. In doing so, the fund balance would be utilized for programs from which the fees were originally collected. Improvements would include several updates to make it easier to do business including on-line licensing and permitting and the ability to make electronic payments. In general, the industry supported the use of the fund balance to make these IT improvements within the bureau. The bureau has begun the detailed discovery phase for the project. Based upon the outcome of this process, the department will likely prepare a detailed request later in 2014 to include utilizing a portion of the ACM fund balance for updating ACM bureau IT systems.
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