Date Requested:March 12, 2013
Time Requested:09:02 AM
Agency: Budget Office
CBD Number: Version: Bill Number: Resolution Number:
2013R2545 Introduced HB2882
CBD Subject: BUDGET REFORM ACT
FUND(S)
All Appropriated Funds (General, Lottery, Road, Special, and Federal funds)
Sources of Revenue
General Fund,Special Fund,Other Fund Lottery, Road & Federal
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

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

    This bill requires spending cuts of 1% for all appropriated accounts in FY 2014 and additonal 1% cuts each succeeding fiscal year for the next 10 years. The Governor has proposed a FY 2014 Budget Bill that recommends appropriations for FY 2014 as follows:
    General Fund $4,140,751,000; Road Fund $1,201,720,704; Special Funds $1,537,485,278; Lottery Fund $151,573,583; Excess Lottery Fund $256,522,000; Federal Funds $3,753,075,577; Federal Block Grant Funds $329,905,155; for a grand total of appropriated FY 2014 Funds of $11,371,033,297.
    
    Required reductions related to these 1% cuts to the recommended FY 2014 appropriations are as follows:
    General Fund $41,407,510; Road Fund $12,017,207; Special Funds $15,374,853; Lottery Fund $1,515,736; Excess Lottery Fund $2,565,220; Federal Funds $37,530,756; Federal Block Grant Funds $3,299,052; for a grand total reductions of appropriated FY 2014 Funds of $113,710,333.
    
    The 10 year phase-in of 1% cuts per year results in total reductions in FY 2023 of a grand total $1,137,103,330 for all funds.
    
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 113,710,333 1,137,103,330
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 113,710,333 1,137,103,330
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    The Governor has proposed a FY 2014 Budget Bill that recommends appropriations for FY 2014 as follows:
    General Fund $4,140,751,000; Road Fund $1,201,720,704; Special Funds $1,537,485,278; Lottery Fund $151,573,583; Excess Lottery Fund $256,522,000; Federal Funds $3,753,075,577; Federal Block Grant Funds $329,905,155; for a grand total of appropriated FY 2014 Funds of $11,371,033,297.
    Required reductions related to these 1% cuts to the recommended FY 2014 appropriations are as follows:
    General Fund $41,407,510; Road Fund $12,017,207; Special Funds $15,374,853; Lottery Fund $1,515,736; Excess Lottery Fund $2,565,220; Federal Funds $37,530,756; Federal Block Grant Funds $3,299,052; for a grand total reductions of appropriated FY 2014 Funds of $113,710,333.
    
    The 10 year phase-in of 1% cuts per year results in total reductions in FY 2023 of a grand total $1,137,103,330 for all funds.
    


Memorandum
Person submitting Fiscal Note:
Mike McKown
Email Address:
mike.p.mckown@wv.gov
    The bill addresses all appropriated funds reguardless of funding source, including special and federal funds which are dedicated for specific purposes. Such proposed state sequestration may result in a number of possible unintended consequences for various goods and services provided by the state or otherwise mandated by federal or state law.
    
    Also, many lines in the budget bill are mandated by statute (for example the School Aid Formula) and may require changes to WV laws.