This financial overview covers the state fiscal year 2013-14 which ran from July 1, 2013-June 30, 2014. Federal grants run on a different cycle (October 1, 2013- September 30, 2014) 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. Revenue and expenditures for Clean Sweep grants are not included in any of the five tables, except a one-time transfer of $750,000 from the ACM Fund to the Environmental Fund. This was a statutory correction to the Clean Sweep program’s funding cycle.
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 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 2013-14 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)
- Food and Drug Administration (FDA)
- United States Department of Agriculture (USDA)
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. It allows for monitoring the affected industries, including feed manufacturers, ingredient transporters and ruminant animal feeders, which are all regulated by the bovine spongiform encephalopathy (BSE) feed ban. The bureau also received a small grant from the USDA specialty crop block grant program. 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 reimburse some costs of agricultural chemical spill cleanups. Table 3 shows the money collected and deposited into the ACCP Fund from industry surcharges. As can be seen in Table 3, the fund balance is growing as revenues continue to outpace expenditures. A 20 percent reduction in surcharges was approved in the 2013-2015 budget bill, but those surcharge reductions have not yet been fully realized due to the timing of surcharge collections. In addition, a large legal settlement increased the ACCP Fund balance in FY14. While additional appropriations had been added to this fund in recent budget bills, in 2014 all non-ACCP related expenditures were removed from the ACCP Fund.
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 by the ACM Bureau from industry and directed by statute to non-ACM programs. Table 5 shows how much money is collected for each non-ACM program. In addition, some of the non-ACM programs’ expenditures do come directly from ACM fund revenues. All of the non-ACM program expenditures that come from the ACM Fund are required by statute.
Direction for the Coming Year
As shown in Table 1, the ACM fund continued to have a large fund 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. The Bureau is continuing to designate and use some of this balance for updating outdated information technology systems within the Bureau. In doing so, the fund balance will be used for programs for which the fees were originally collected. Improvements will include several updates to make it easier to do business, including online licensing and permitting and the ability to make electronic payments. The Bureau continued the detailed discovery phase for the project in 2014. Based upon the outcome of this process, the department will likely prepare a detailed request later in 2016 to include using a portion of the ACM fund balance for updating ACM bureau information technology systems.
In addition, the Bureau began a comprehensive review of all revenues and expenditures (RevEx) to ensure fee levels and revenues are appropriate and properly aligned with bureau expenditures. RevEx will also be reviewing how fees are collected and the timing of various licenses. Bureau staff will be working with a stakeholder working group and several subcommittees throughout 2015 and 2016 in order to make recommendations by fall 2016. Legislation will likely be required to implement some recommendations.
For more information about any of the bureau programs you may email the department.
Back to ACM Annual Report homepage.