Date Requested: February 05, 2015
Time Requested: 04:45 PM
Agency: State Budget Office
CBD Number: Version: Bill Number: Resolution Number:
1636 Introduced HB2218
CBD Subject: Legislature


FUND(S):

General, Lottery, Special, Road, Federal, and Federal Block

Sources of Revenue:

General Fund,Special Fund,Other Fund Road, Federal, Federal Bl

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


    HB2218 reduces the budget of the State of West Virginia by 1% per year (starting in FY 2016) and in each succeeding fiscal year for the next 10 years.
    
    The Governor's proposed FY 2016 budget for all "appropriated" accounts totals $12,528,391,000.
    
    A 1% reduction would reduce the FY 2016 appropriations by $-125,283,910, resulting in a FY 2016 appropriated budget of $12,403,107,090.
    
    If reductions were applied to each funding source proportionally, then
    General Revenue FY16 appropriations would be reduced by $-43,215,760,
    Road Fund FY16 appropriations would be reduced by $-11,743,920,
    Special Revenue FY16 appropriations would be reduced by $-18,901,020,
    Lottery Fund FY16 appropriations would be reduced by $-1,363,260,
    Excess Lottery Fund FY16 appropriations would be reduced by $-3,003,810,
    Federal Revenue FY16 appropriations would be reduced by $-47,056,140.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 -125,283,910 -1,197,938,750
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 -125,283,910 -1,197,938,750
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    A 1% reduction would reduce the FY 2016 appropriations by $-125,283,910, resulting in a FY 2016 appropriated budget of $12,403,107,090.
    
    If reductions were applied to each funding source proportionally, then
    General Revenue FY16 appropriations would be reduced by $-43,215,760,
    Road Fund FY16 appropriations would be reduced by $-11,743,920,
    Special Revenue FY16 appropriations would be reduced by $-18,901,020,
    Lottery Fund FY16 appropriations would be reduced by $-1,363,260,
    Excess Lottery Fund FY16 appropriations would be reduced by $-3,003,810,
    Federal Revenue FY16 appropriations would be reduced by $-47,056,140.



Memorandum


    This fiscal note assumes that appropriation reductions would be based upon the total amount appropriated.
    
    There are many appropriations that are statutorily required (School Aid Formula, debt service, etc.) and therefore, if not changed in statute, would have to be exempted from cuts, which would have the effect of cutting other appropriations by more than 1%.
    
    Also, under this bill,Federal funds could not be totally spent and, in some cases, would revert back to the Federal Government.



    Person submitting Fiscal Note: Mike McKown
    Email Address: mike.p.mckown@wv.gov