FISCAL NOTE

Date Requested: February 04, 2019
Time Requested: 02:38 PM
Agency: Lottery Commission, WV
CBD Number: Version: Bill Number: Resolution Number:
1536 Introduced HB2839
CBD Subject: Legal Gaming


FUND(S):

Lottery

Sources of Revenue:

Special Fund

Legislation creates:

Decreases Existing Revenue



Fiscal Note Summary


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


    Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
    
    
    The projected impact to the Excess Lottery Revenue Fund is a reduction of $26,171,164. This projected reduction will reduce the funds available for the allocations outlined in West Virginia Code §29-22-18a through §29-22-18f.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 26,171,164 26,171,164
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


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


    Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
    
    
    



Memorandum


    Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
    
    
    HB2839, as introduced, will likely have a negative effect upon the State’s Debt Service Coverage, thereby impacting West Virginia’s AAA bond rating. The proposed bill would reduce the funds available to pay debt service below the expected ratio* considered by bondholders and rating agencies as a key credit factor to maintain a AAA bond rating.
    
     *A ratio of 4x the revenue available for repayment to the amount of debt service = Debt Service Coverage
    
    



    Person submitting Fiscal Note: Tracy L. Webb, General Counsel
    Email Address: twebb@wvlottery.gov