WEST virginia legislature
2017 regular session
Senate Bill 476
By Senators Carmichael (Mr. President) and Prezioso
(By Request of the Executive)
[Introduced February 28,
to the Committee on Finance]
A BILL expiring funds to the unappropriated balance in the State Fund, General Revenue, for the fiscal year ending June 30, 2017, in the amount of $101,700,000 from the Department of Revenue, Office of the Secretary – Revenue Shortfall Reserve Fund, fund 7005, fiscal year 2017, organization 0701.
Whereas, The Governor submitted to the Legislature the Executive Budget document, dated February 8, 2017, which included a Statement of the State Fund, General Revenue, setting forth therein the cash balance as of July 1, 2016, and further included the estimate of revenues for the fiscal year 2017, less net appropriation balances forwarded and regular appropriations for the fiscal year 2017; and
Whereas, The Secretary of the Department of Revenue has submitted a monthly General Revenue Fund Collections Report for the first seven months of fiscal year 2017 as prepared by the State Budget Office; and
Whereas, This report demonstrates that the State of West Virginia has experienced a revenue shortfall of approximately $116 million for the first seven months of fiscal year 2017, as compared to the monthly revenue estimates for the first seven months of the fiscal year 2017; and
Whereas, Current economic and fiscal trends are anticipated to result in projected year-end revenue deficits, including potential significant shortfalls in Personal Income Tax, Consumer Sales and Use Tax, and Corporation Net Income Tax; and
Whereas, Projected year-end revenue surpluses in various other General Revenue sources will only offset a small portion of these deficits; and
Whereas, The total projected year-end revenue deficit for the General Revenue Fund is estimated at $192 million; and
Whereas, On November 4, 2016, the Governor issued Executive Order 8-16 which redirected certain revenues pursuant to the terms SB 419 for fiscal year 2017 of approximately $25.5 million; and
Whereas, On November 15, 2016, the Governor issued Executive Order 9-16 which directed a spending reduction for General Revenue appropriations for fiscal year 2017 of approximately $59.8 million; and
Whereas, On December 30, 2016, the remaining balance of $5,000,000 in the Personal Income Tax Reserve Fund was utilized to ensure timely payment of tax refunds; and
Whereas, The Revenue Shortfall Reserve Fund may be drawn on in the event of a revenue shortfall in lieu of imposing additional reductions in appropriations; and
Be it enacted by the Legislature of West Virginia:
That the balance of the funds available for expenditure in the fiscal year ending June 30, 2017, in the Department of Revenue, Office of the Secretary - Revenue Shortfall Reserve Fund, fund 7005, fiscal year 2017, organization 0701, be decreased by expiring the amount of $101,700,000, to the unappropriated balance of the State Fund, General Revenue, to be available during the fiscal year ending June 30, 2017.
NOTE: The purpose of this supplemental appropriation bill is to expire funds from the aforesaid account to the State Fund, General Revenue unappropriated balance for the fiscal year 2017.