FISCAL NOTE
Date Requested: February 05, 2026
Time Requested: 04:37 PM |
| Agency: |
Revenue, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3189 |
Introduced |
HB5272 |
|
|---|
| CBD Subject: |
Counties; Legislature |
|---|
|
FUND(S):
PIT Reserve Fund, Rainy Day A, Rainy Day B
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
House Bill 5272 authorizes a one-time allocation of $250 million to the West Virginia Flood Resiliency Trust Fund. The intent of HB 5272 appears to be that $100 million of this funding would be transferred from the Revenue Shortfall Reserve Fund, although it is not fully clear whether HB 5272 refers to Rainy Day A or Rainy Day B, as both funds are defined under the bill’s citation of §11B-2-20. An additional $150 million is intended to be transferred from the Personal Income Tax Reserve Fund.
As written, the bill has no impact on the State’s revenues due to the permissive language of the bill. This bill would not cause these transfers to occur and would require additional supplemental bills to carry out these transfers.
However, the impact of the bill’s legislative intent can be reasonably estimated. Under §11-21-93, all interest generated by the investment returns of the Personal Income Tax Reserve Fund are credited to the General Revenue Fund. Using the balance of the PIT Reserve Fund for any purpose reduces the balance in that Fund and the amount of principal on which interest is generated.
The West Virginia State Treasurer’s Office invests the balance of the PIT Reserve Fund in the West Virginia Money Market Pool. According to their FY 2025 Annual Report, the total pool returns over one year, three years, and five years were 4.95 percent, 4.89 percent, and 2.89 percent, respectively. Using the one-year return, if the balance of the PIT Reserve Fund had been $150 million less Interest Income, and thus the General Revenue Fund, would have been lower by approximately $7.5 million.
Rainy Day A and Rainy Day B each retain their own interest earnings and, as a result, transfers from those funds do not directly affect the State’s revenues but would lower their interest earnings. Transfers from either Fund also make it more likely that surplus dollars at the end of any fiscal year must be used to replenish their balance, making “back of the budget” items less likely to be funded.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-7,500,000 |
Explanation of above estimates (including long-range effect):
House Bill 5272 authorizes a one-time allocation of $250 million to the West Virginia Flood Resiliency Trust Fund. The intent of HB 5272 appears to be that $100 million of this funding would be transferred from the Revenue Shortfall Reserve Fund, although it is not fully clear whether HB 5272 refers to Rainy Day A or Rainy Day B, as both funds are defined under the bill’s citation of §11B-2-20. An additional $150 million is intended to be transferred from the Personal Income Tax Reserve Fund.
As written, the bill has no impact on the State’s revenues due to the permissive language of the bill. This bill would not cause these transfers to occur and would require additional supplemental bills to carry out these transfers.
However, the impact of the bill’s legislative intent can be reasonably estimated. Under §11-21-93, all interest generated by the investment returns of the Personal Income Tax Reserve Fund are credited to the General Revenue Fund. Using the balance of the PIT Reserve Fund for any purpose reduces the balance in that Fund and the amount of principal on which interest is generated.
The West Virginia State Treasurer’s Office invests the balance of the PIT Reserve Fund in the West Virginia Money Market Pool. According to their FY 2025 Annual Report, the total pool returns over one year, three years, and five years were 4.95 percent, 4.89 percent, and 2.89 percent, respectively. Using the one-year return, if the balance of the PIT Reserve Fund had been $150 million less Interest Income, and thus the General Revenue Fund, would have been lower by approximately $7.5 million.
Rainy Day A and Rainy Day B each retain their own interest earnings and, as a result, transfers from those funds do not directly affect the State’s revenues but would lower their interest earnings. Transfers from either Fund also make it more likely that surplus dollars at the end of any fiscal year must be used to replenish their balance, making “back of the budget” items less likely to be funded.
Memorandum
Person submitting Fiscal Note: Peter Shirley
Email Address: peter.shirley@wv.gov