Expiring funds to the Department of Administration, Board of Risk and Insurance Management, Public Entity Insurance Trust Fund
Impact
The passage of HB 3542 has implications for state budgeting and financial management concerning public insurance trusts. By reallocating funds from one department to another, the bill aims to enhance the financial stability and availability of the Public Entity Insurance Trust Fund, which provides coverage to various public entities in West Virginia. The effective use of these funds is critical for ensuring that risks related to public works and services are adequately managed, potentially impacting state financial resilience and risk mitigation strategies.
Summary
House Bill 3542 is an act concerning the allocation of funds within the West Virginia Department of Administration, specifically aimed at the Board of Risk and Insurance Management. The bill proposes expiring $50,000,000 from the Mine Subsidence Insurance Fund and reallocating it to the Public Entity Insurance Trust Fund. This reallocation is based on the Governor's assessment that the balance in the Mine Subsidence Insurance Fund exceeds what is necessary for its established purposes. The bill, which passed on March 10, 2023, is effective from the date of passage.
Sentiment
General sentiment surrounding the bill appears to be supportive among legislators, as indicated by the significant majority vote of 31 in favor and only 2 against. The bill seems to have been viewed as a prudent financial decision to enhance the management of risk and insurance in the public sector, reflecting a consensus on the necessity for effective oversight of state funds.
Contention
While the bill passed with broad support, there may be underlying concerns regarding the specific amounts allocated and the potential impact on local entities affected by the mine subsidence insurance provisions. However, the limited points of contention observed reflect a general alignment on the priorities of budgetary management within the state legislature, with stakeholders recognizing the need for financial adjustments in response to existing fund balances.