FISCAL NOTE
FUND(S):
non-appropriated special revenue
Sources of Revenue:
Other Fund Banking Services Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The State Treasurer's Office and the Small Business Program of the WV Development Office both play a roll in this program. This fiscal note only references costs by the State Treasurer's Office. You should contact the Develoment Office to obtain their costs.
Businesses opting to use the Linked Deposit Program must apply for a load from a bank. The bank and the company then submit the loan to the Small Business Program and subsequestly to the State Treasurer's Office for final approval. Once approved, the State Treasurer's Office places a deposit in said bank and receives a lower rate of interest on the deposit that would regularly be received for a like deposit not tied to the Linked Deposit Program.
The State Treasurer's Office uses up to $20 million of surplus revenue to make the deposits at the banks. Therefore, other than processing and record-keeping at the State Treasurer's Office which would be done by existing staff, there would not be additional cost to the State to run this program.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
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):
Since, the code requires deposits to banks be made from up to $20 million of surplus there is not a specific cost for the investment. However there is a reduction in the interest rate paid by the bank to the State. This reduced interest does affect the amount of revenues that could be available to the Leglslature for appropriation in subsequest years.
Record keeping activities performed by State Treasurer's Office staff are absorbed by the State Treasurer's Office current operating expenses.
Memorandum
Person submitting Fiscal Note: Blair Taylor
Email Address: blair.taylor@wvsto.com