FUND(S):

Revenue Shortfall Reserve Fund (7005) & Revenue Shortfall Reserve Fund - Part B (7006)

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    SB 395 – Transferring any funds at the end of a fiscal year in the Revenue Shortfall Reserve Fund(s){Rainy Day Funds} that exceeds 10% of the state’s General Revenue Fund budget for the fiscal year just ended to the State Road Fund.
    
    Example:
    FY 2010 – General Revenue budget $3,785,976,953 * 10% = $378,597,695.30
    Rainy Day – June 30, 2010 balance - $276,949,590.37
    Fund did not have balance to trigger new provision.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
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):


    N/A - Rainy Day Fund(s) do not incur daily operational expenses.



Memorandum


    The new phrase added in 11B-2-20 (g) seems contradict the sections e - 1, 2 and 3 that state only interest earnings in the Revenue Shortfall Reserve Fund - Part B fund may be expended once all funds in the Revenue Shortfall Reserve Fund have been exhausted and not before June 30, 2025 for revenue shortfalls or fiscal emergencies of an extraordinary nature.
    
    Also the new sentence refers to revenues in the fund while the existing phrasing preceding is referring to 10% of expenditures allowed from fund(s) in each fiscal year.
    
     Person submitting Fiscal Note: Tammy Scruggs
     Email Address: tammy.l.scruggs@wv.gov