FISCAL NOTE
Date Requested: October 07, 2024
Time Requested: 05:41 PM |
| Agency: |
Economic Development Authority, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 5091 |
Introduced |
HB241 |
|
|---|
| CBD Subject: |
Governor -- Bills Requested By |
|---|
|
FUND(S):
Economic Development Project Fund
Sources of Revenue:
Special Fund
Legislation creates:
Increases Revenue From Existing Sources, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This Bill appears to be an allocation of excess revenue and does not create a new revenue source. It will be an appropriation of excess revenue from the Legislature to increase the funding in an existing fund, authorized for use to fund some existing loan programs, and providing additional funds to keep an existing broadband loan insurance program in operation.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
100,000 |
100,000 |
100,000 |
| Personal Services |
70,000 |
70,000 |
70,000 |
| Current Expenses |
30,000 |
30,000 |
30,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
416,667 |
416,666 |
416,667 |
Explanation of above estimates (including long-range effect):
It is anticipated that this bill will require the hiring of one entry-level full-time commercial loan officer, at $70,000/year salary, benefits-related expenses of $25,000-28,000/year, and ancillary/office equipment and operating expenses of $2,000-$5,000/year, for a total annual expense increase of $100,000.
Annual revenues can be anticipated at 1.0% of the total award of $125 million, spread over several years of implementation, resulting in additional annual gross revenue of $416,667/year.
The fiscal impact can be expected to vary in future years and will be mostly driven by broadband internet services expansion. As can be expected, as the expansion efforts prove successful, the impact on future years can be expected to decrease.
Memorandum
There is one conflicting area in the Bill, located on page 11-12, between terms in line 138 and lines 160-163. As it exists in current legislation, the Broadband Loan Insurance program is subject to a biennial legislative audit, as stated in line 138. However, it is stated in lines 160-163 that "During each year..." "...the Legislative Auditor shall audit the procedures, accounting practices, and internal controls of the authority for compliance...". It should be noted that since the initial enactment of legislation requiring the biennial legislative audit, the EDA has been undergoing the first occurrence of the required audit for nearly a full year. If an annual audit is required it can be assumed that the audit process would be nearly continual.
It is highly recommended that any funds directed to be used for Broadband Loan Insurance not be deposited and comingled in the existing Economic Development Project Fund, but be deposited into a newly created special purpose fund dedicated wholly to Broadband Loan Insurance due to the completely different use of, accounting for, and processing of those funds. Broadband Loan Insurance funds are not analogous to loan funds.
Person submitting Fiscal Note: J. Steven Webb
Email Address: Steven.J.Webb@wv.gov