This financial overview covers the state fiscal year 2010-11 which ran from July 1, 2010 through June 30, 2011. Federal grants run on a different cycle (October 1, 2010 through September 30, 2011) 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 from 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.
Program HighlightsAgricultural Chemical Cleanup Program Fund (ACCP Fund)
The ACCP Fund is used to make reimbursement payments for agricultural chemical spill cleanups. Table 2 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 3 shows the fees that are collected from industry fees that are used by Non-ACM programs. Table 4 shows the total industry fee amounts that are collected for each of the Non-ACM programs. Included in this amount is $3,708,818 that was lapsed to the General Fund during FY 10-11.
FY 2010-11 Program Expenditures
In addition to the industry fees, the ACM programs are also supported by grants from the following federal agencies:
- Environmental Protection Agency (EPA)
- Department of Agriculture (USDA)
- 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. The USDA grant provides funding for inspection of restricted-use pesticide records on farms. Our cooperative efforts with FDA, include the inspection contract and the Bovine Spongiform Encephalopathy (BSE) expansion grants. These grants 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 BSE feed ban. Table 5 is a summary of the total ACM revenues collected to operate the programs within the ACM bureau.
Direction for the Coming Year
In the past, the ACM and ACCP funds have had significant balances remaining in them at the end of the fiscal year. Over the years, the remaining balance in these funds has been lapsed and used for many purposes other than ACM programs. As a result, in the upcoming year the Department will be working with industry associations with the goal of developing an approach to manage the ACM and ACCP funds so there is a limited balance remaining in the funds at the end of the fiscal year. A report will be submitted to the Joint Finance Committee in 2012, as required by Act 32 (budget bill).
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