FISCAL NOTE
Date Requested: February 17, 2026
Time Requested: 01:40 PM |
| Agency: |
Auditor, State of WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3454 |
Introduced |
HB5641 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
State Funds
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of proposed House Bill 5641 is to create mandatory public financial transparency for governmental entities.
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 |
634,000 |
634,000 |
| Personal Services |
0 |
134,000 |
134,000 |
| Current Expenses |
0 |
500,000 |
500,000 |
| 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):
In assessing the potential financial impacts of the proposed legislation, we first determined that 22 counties and 206 municipalities in West Virginia were still not participating in the Transparency Program developed by the State Auditor known as “West Virginia Checkbook” and would need to be brought onboard in either our Program or stood up independently. Upon reading the proposed legislation, we made an attempt to determine the population of boards and authorities which are likely operating in West Virginia and subject to the provisions of the proposed Bill; however, a quick and accurate assessment of that population cannot be obtained in a manner which would allow us to make a timely response to this Fiscal Note Request. Simply based on a quick review, we were able to identify about 60 such boards and authorities, but we suspect the true number of such boards and authorities is larger. We believe upon full implementation of the Bill, the State Auditor would need to hire two new staff members to oversee the transparency activities outlined in the proposed Bill at a total cost of $134,000, inclusive of fringe benefit costs. Also, we believe the addition of several hundred new entities to the Transparency Program will result in a significant increase of data collection, program manipulation and storage which could result in approximately $500,000 of new contract costs with our current program vendor. In summary, we currently estimate the implementation costs of the proposed Bill would total $634,000. In order to implement the provisions of the legislation, our best estimate is the actions needed to effectuate the provisions of the Bill would require an appropriation of $634,000 annually from the State General Revenue Fund.
Memorandum
In terms of implementation, we believe the vast majority of covered entities will operate using a July 1 – June 30 fiscal year which would dictate the effective date for transparency compliance for counties and municipalities would be July 1, 2027 should the Bill be adopted. Based on our prior experience, we believe the State Auditor could fully bring up the remaining 22 counties and a substantial number of the 206 remaining municipalities by July 1, 2027. However, we do have concerns about having all affected entities in compliance within calendar year 2027 depending on whether the entity’s fiscal year begins on January 1; July 1; or another date established in law, particularly the various boards and authorities as we do not have great visibility at the time of preparation of this fiscal note in terms of identifying them fully. As such, it will be helpful if the Legislature would consider amending the provisions of the Bill to provide that boards and authorities would be required to be compliant with the transparency provisions at the start of their first full fiscal year beginning in calendar year 2028, whether that year begins on January 1, July 1, or another date established by law. However, as always, should the Bill be adopted in any form, the State Auditor will assess all available options and take all possible measures to effectuate the requirements of the Bill.
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov