COMMITTEE SUBSTITUTE

FOR

H. B. 4018

(By Mr. Speaker, Mr. Chambers, and Delegate Burk)


(Originating in the House Committee on Finance)


(January 27, 1994)


A BILL to amend and reenact section twenty, article two, chapter five-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to creating a revenue shortfall reserve fund, funding and use of said fund.
Be it enacted by the Legislature of West Virginia:

That section twenty, article two, chapter five-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 2. FINANCE DIVISION.

§ 5A - 2 - 20. Reduction of appropriations - - Powers of governor.

(a) Notwithstanding any provision of this section, the governor may reduce appropriations according to any of the methods set forth in sections twenty-one and twenty-two of this article. The governor may, in lieu of imposing a reduction in appropriations, request an appropriation by the Legislature from the revenue shortfall reserve fund established in this section.

(b) A revenue shortfall reserve fund is hereby created within the state treasury. The revenue shortfall reserve fund shall be funded as set forth herein from surplus revenues, if any, in the state fund, general revenue, as such surplus revenues may accrue from time to time. Commencing with the fiscal year ending the thirtieth day of June, one thousand nine hundred ninety-four and for each fiscal year thereafter, within sixty days of the end of each fiscal year, the secretary shall cause to be deposited into the revenue shortfall reserve fund the first fifty percent of all surplus revenues, if any, determined to have accrued during the fiscal year just ended. The revenue shortfall reserve fund shall be funded continuously and on a revolving basis in accordance with this subsection up to an aggregate amount not to exceed five percent of the total appropriations from the state fund, general revenue for the fiscal year just ended. If at the end of any fiscal year the revenue shortfall reserve fund is funded at an amount equal to or exceeding five percent of the state's general revenue fund budget for the fiscal year just ended, then there shall be no further obligation of the secretary under the provisions of this section to apply any surplus revenues as set forth herein until such time as the revenue shortfall reserve fund balance is less than five percent of the total appropriations from the state fund, general revenue.
(c) Not earlier than the first day of November of each calendar year, if the state's fiscal circumstances are such as to otherwise trigger the authority of the governor to reduce appropriations under section twenty, twenty-one or twenty-two of this article, then in such event the governor may notify in writing the presiding officers of both houses of the Legislature of his or her intention to convene the Legislature pursuant to section 19, article VI of the West Virginia Constitution for the purpose of requesting the introduction of a supplementary appropriations bill or to request a supplementary appropriation bill at the next preceding regular session of the Legislature to draw money from the surplus revenue shortfall reserve fund to meet any anticipated revenue shortfall. If the Legislature fails to enact a supplementary appropriation from the revenue shortfall reserve fund during any special legislative session called for the purposes set forth in this section or during the next preceding regular session of the Legislature, then the governor may proceed with a reduction of appropriations pursuant to section twenty-one and section twenty-two of this article. Should any amount drawn from the revenue shortfall reserve fund pursuant to an appropriation made by the Legislature prove insufficient to address any anticipated shortfall, then the governor may also proceed with a reduction of appropriations pursuant to sections twenty-one and twenty-two of this article.