FISCAL NOTE
Date Requested: February 01, 2019
Time Requested: 01:19 PM |
| Agency: |
Budget Office, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2150 |
Introduced |
SB500 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
Sewer and Water Infrastructure Replacement Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, Creates New Program, Creates New Fund: Sewer and Water Infrastructure Replacement Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Current statute requires 50% of surplus General Revenue from the fiscal year just ended to be deposited into the Revenue Shortfall Reserve Fund. The remaining 50% of surplus is available for surplus appropriation. Once the balance of the Revenue Shortfall Reserve Fund reaches 13 percent, there is no further obligation for deposits to the Revenue Shortfall Reserve Fund which allows the entire surplus balance of General Revenue to be available for appropriation by the Legislature for other purposes.
Based on our interpretation of the bill as it relates to the Revenue Shortfall Reserve Fund, increasing the cap on the required surplus to the Revenue Shortfall Reserve Fund from 13 percent to 17 percent would have a positive impact to the balance of the Revenue Shortfall Reserve Fund. However, as this bill proposes, diverting 100% of the surplus balance of General Revenue (after reaching the proposed cap of 17 percent to the Revenue Shortfall Reserve Fund) to the Sewer and Water Infrastructure Replacement Fund will eliminate any surplus funds from being available for later appropriation by the Legislature for other purposes.
As proposed, the diversion of surplus balances to the new fund, decreases potential revenue to the Revenue Shortfall Reserve Fund and surplus appropriations.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
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 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Memorandum
Current statute requires 50% of surplus General Revenue from the fiscal year just ended to be deposited into the Revenue Shortfall Reserve Fund. The remaining 50% of surplus is available for surplus appropriation. Once the balance of the Revenue Shortfall Reserve Fund reaches 13 percent, there is no further obligation for deposits to the Revenue Shortfall Reserve Fund which allows the entire surplus balance of General Revenue to be available for appropriation by the Legislature for other purposes.
Based on our interpretation of the bill as it relates to the Revenue Shortfall Reserve Fund, increasing the cap on the required surplus to the Revenue Shortfall Reserve Fund from 13 percent to 17 percent would have a positive impact to the balance of the Revenue Shortfall Reserve Fund. However, as this bill proposes, diverting 100% of the surplus balance of General Revenue (after reaching the proposed cap of 17 percent to the Revenue Shortfall Reserve Fund) to the Sewer and Water Infrastructure Replacement Fund will eliminate any surplus funds from being available for later appropriation by the Legislature for other purposes.
As proposed, the diversion of surplus balances to the new fund, decreases potential revenue to the Revenue Shortfall Reserve Fund and surplus appropriations.
Person submitting Fiscal Note: Michael Cook, Director, State Budget Office
Email Address: michael.t.cook@wv.gov