FISCAL NOTE
Date Requested: February 18, 2026
Time Requested: 03:48 PM |
| Agency: |
Risk and Insurance Management, Board of (BRIM) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4109 |
Introduced |
SB969 |
|
|---|
| CBD Subject: |
Counties; Education (K12); Insurance |
|---|
|
FUND(S):
Public Entity Insurance Trust Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The proposed legislation would allow County Boards of Education to seek insurance coverage from licensed insurance carriers, in addition to the West Virginia Board of Risk and Insurance Management. The proposed legislation if enacted could decrease revenue, require claim run-off capital (appropriation), decrease expenses, and potentially create an adverse risk retention for BRIM and the state of West Virginia. Without obtaining an outside actuarial opinion, which will take a considerable amount of time, BRIM is unable to quantify the costs associated.
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 |
-36,000,000 |
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.
1. Premium revenue for Fiscal Year 2026 is approximately $36 million. This revenue would decrease overtime should County Boards of Education leave BRIM’s Insurance program;
2. When County Boards of Education opt out of BRIM's program, funding obligations remain becasuse of the lag time between coverage and claim development and funding. Therefore, a legislation appropriation would likely be necessary to maintain fund levels if a significant amount of County Boards of Education leave BRIM's insurance program;
3. Attrition of County Boards of Education within BRIM’s insurance program could reduce claim payouts and associated expenses over time.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
BRIM's current policy renewed on July 1, 2025. BRIM cannot unilaterally change the terms of the policy for FY 2026. BRIM requests if this proposed legislation takes effect before July 1, 2026, the County Boards of Education become “Permissive Entities”, that fall under 115CSR2, thereby allowing BRIM to avoid adverse risk retention for the programs and State. If this change is not made, BRIM would be unable to cancel or non-renew County Boards of Education, allowing retention for adverse risk and increasing costs.
Person submitting Fiscal Note: Emily Fleck
Email Address: emily.s.fleck@wv.gov