FISCAL NOTE
Date Requested: February 01, 2022
Time Requested: 12:45 PM |
| Agency: |
School Building Authority, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1173 |
Introduced |
HB4466 |
|
|---|
| CBD Subject: |
Bonds |
|---|
|
FUND(S):
Special Revenue
Sources of Revenue:
Special Fund
Legislation creates:
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.
This measure will have no impact on revenue or expense to the State of WV. This bill only gives the County the ability to request the approval from SBA to show that the County will be receiving funds from the SBA in addition to the levy they are requesting.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2022
Increase/Decrease
(use"-") |
2023
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.
The would be no change to revenue/expenses for this measure.
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.
The SBA is in agreement with HB4466; however, we do not believe the SBA statutes, Chapter 18-9D, provide for the SBA to use those funds other than for payment of debt service on bonds issued by the SBA or to pay for capital projects. Also, since County Boards of Education issue their bonds as general obligation bonds, they're required to levy property taxes in an amount sufficient to repay their bond. I'm not sure that the provisions of Ch. 13, Art. 1 authorize the pledging of other sources of funds to repay those types of bonds. The concern would be a county pledging SBA funds to their bonds, which is not permissible.
To address this, after the sentence, "If the County intends to use financial support from the Authority as part of its bond funding plan, the County may not proceed with a bond levy election without first obtaining initial approval from the School Building Authority," I suggest to include the following language: "Notwithstanding the foregoing, financial assistance to be provided by the School Building Authority may only be used to pay costs of capital improvements and shall not be pledged as security for or repayment of any bonds issued by the County Board of Education."
Person submitting Fiscal Note: JORDAN KIRK
Email Address: JORDAN.L.KIRK@WV.GOV