Relating to “unencumbered” special revenue accounts to be surrendered to general revenue under certain circumstances
The bill's enactment is expected to impact the management of state finances by reducing the number of dormant accounts that accumulate unspent funds. This would serve to streamline financial processes within state agencies and encourage the utilization or reallocation of state resources. The bill intends to enhance the state's treasury operations by ensuring more efficient use of public funds and discouraging the prolonged inactivity of revenue accounts.
House Bill 2372 aims to amend the West Virginia Code to introduce new provisions regarding unencumbered funds in special revenue accounts. The bill outlines a process whereby funds that have remained inactive for specified periods will be forfeited and returned to the General Revenue Fund. Specifically, it mandates that if a special revenue account has had no activity for a duration of over one year, up to 100% of those funds may be returned to the state treasury, depending on the length of inactivity.
General sentiment around HB 2372 appears to be pragmatic, with a focus on improving fiscal responsibility. Supporters seem to endorse the idea of reallocating unused funds back into the General Revenue Fund where they can be more effectively used. There may, however, be concerns from certain agencies that rely on these special funds, as the bill could disrupt established funding streams and financial planning.
Notably, the bill raises questions regarding agency autonomy in managing their funding sources. Stakeholders may argue that forcibly removing unspent funds could compromise programs that depend on special revenue accounts for funding—especially those that may require extended time frames before projects can show financial outputs. Hence, the conversation around HB 2372 might highlight a balance between state financial efficiency and agency funding independence.