West Virginia House Bill HB2490

West Virginia 2022 Regular Session

• Introduced: 1/12/22
• Refer: 1/12/22

Caption

Requiring fifty percent of all reappropriated revenue accounts to be surrendered to general revenue

Impact

The anticipated impact of HB 2490 on state laws primarily revolves around state budgeting and the allocation of financial resources. By compelling the transfer of funds from reappropriated accounts, the bill is expected to augment the liquidity of the General Fund, potentially allowing for enhanced allocation toward pressing state needs such as education, infrastructure, and public health. This could lead to a more proactive approach to managing state resources, addressing deficiencies in service delivery that are frequently hampered by funding shortfalls.

Summary

House Bill 2490 aims to amend the existing Code of West Virginia by instituting a requirement for the State Treasurer to transfer 50 percent of the unencumbered balance from each reappropriated revenue account to the General Fund within 30 days of the bill's effective date. This legislative measure targets the optimization of state financial management by ensuring that excess funds are redirected to the General Fund, which is crucial for funding various state operations and services. However, specific exceptions are included to safeguard against transfers that could violate federal laws or contractual agreements.

Sentiment

Sentiment around HB 2490 appears to be cautiously supportive among financial management advocates. Proponents argue that the bill represents a necessary step toward greater fiscal responsibility and accountability in state governance. They assert that utilizing unencumbered funds in this manner may mitigate budgetary shortfalls and streamline financial operations. However, some critics express concerns that the mandatory transfer of funds could lead to potential conflicts in financial planning, limiting the flexibility of state agencies to allocate resources based on specific needs or initiatives.

Contention

Notable points of contention include the implications of mandatory funding transfers on state agencies' financial autonomy and programmatic decisions. Opponents may argue that such a regulation could create challenges for certain agencies that rely heavily on stable funding streams assigned to their reappropriated accounts. Furthermore, the stipulations that exempt transfers under specific legal conditions could lead to ambiguity in implementation, raising questions about compliance and the overall intent of enhancing transparency in state finance management.