2012 Financial Overview
This financial overview covers the state fiscal year 2011-12 which ran from July 1, 2011 through June 30, 2012. Federal grants run on a different cycle (October 1, 2011 through September 30, 2012) 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.
FY 2011-12 Other ACM Program Revenues
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. FY 2012 is the last year that USDA will provide this funding. 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.
ACM and ACCP Fund Update
As required by Act 32 (2011 budget bill) a report was prepared and submitted to the Joint Finance Committee in June of 2012. This report summarized the condition of the ACCP and the ACM funds. The department also met with several industry associations to discuss management of the ACM and ACCP funds. In the fall of 2012, the department proposed a number of adjustments to manage the funds as part of the budget process, based on input from industry. Some but not all of these proposals were included in the Governor’s FY 13-15 budget bill.
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
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 present a detailed request to the Joint Finance Committee later in 2013 or 2014 to include utilizing a portion of the ACM fund balance for updating ACM bureau IT systems.
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