sb415 sub1 eng
Senate Bill No. 415
(By Senators Love, Anderson, Bailey, Boley, Bowman,
Caldwell, Edgell, Facemyer, Fanning, Hunter, Minard,
Mitchell, Prezioso, Redd, Ross, Rowe, Sprouse, Plymale and
[Originating in the Committee on Government Organization;
reported March 22, 2001.]
A BILL to amend chapter seven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article twenty-one, relating
to authorizing rainy day funds for counties known as a
financial stabilization fund; naming act; providing findings
of the Legislature; authorizing county commissions to create
financial stabilization funds; specifying the receipts
available for the fund; establishing cap of 30 percent for the
fund; authorizing investment of funds; and specifying
authorized expenditures from the fund.
Be it enacted by the Legislature of West Virginia:
That chapter seven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended by adding thereto
a new article, designated article twenty-one, to read as follow:
ARTICLE 21. COUNTY FINANCIAL STABILIZATION FUND ACT.
§7-21-1. Short title.
This article may be known and cited as the "County Financial
Stabilization Fund Act".
§7-21-2. Findings and declarations.
The Legislature finds and declares that:
(1) County government should maintain a prudent level of
financial resources to try to protect against reducing service
levels or raising taxes and fees because of temporary revenue
shortfalls, unpredicted one-time expenditures or emergency
(2) The creation, maintenance and use of a financial
stabilization fund will provide counties with assistance to meet
these challenges, as well as enable them to improve their financial
management and practices.
§7-21-3. Budget stabilization fund; creation; appropriation;
(a) A county commission may create a "financial stabilization
fund" by a majority vote of the members. The fund may receive appropriations, gifts, grants and any other funds made available.
(b) The county commission may appropriate a sum to the fund
from any surplus in the general fund at the end of each fiscal year
or from any other money available.
(c) The amount of money in the fund may not exceed 30 percent
of the county's most recent general fund budget, as originally
adopted. When the fund exceeds the thirty percent, the county
commission shall transfer the excess to any fund it considers
§7-21-4. Fund investment; usage.
(a) The county commission may invest the money in the fund as
it considers appropriate, with the earnings retained by the fund.
(b) The county commission may appropriate money in the
financial stabilization fund upon a majority vote for any of the
(1) To cover a general fund shortfall; or
(2) Any other purpose the commission considers appropriate.
(NOTE: The purpose of this bill is to authorize county
commissions to create financial stabilization funds, which are
better known as "rainy day funds". The bill also provides for
receipts and disbursements from the fund, as well as investing the
This article is new; therefore, strike-throughs and
underscoring have been omitted.)