This bill amends West Virginia Code §11-8-26 to clarify the limitations on how local fiscal bodies can obligate funds beyond a one-year period. It specifies that local fiscal bodies are prohibited from incurring obligations in an unauthorized manner, for unauthorized purposes, or in excess of allocated funds. The bill introduces a new subsection (b) that allows local fiscal bodies to enter into multi-year contracts, extending up to five years, provided these contracts include a cancellation clause allowing termination with 30 days' notice. Additionally, it permits multi-year contracts for technology licensing service agreements with terms extending up to ten years under the same conditions.

Furthermore, the bill includes a provision that local fiscal bodies must justify entering into these multi-year contracts by maintaining documentation of material fiscal savings. The existing language regarding casual deficits is also modified, ensuring that local fiscal bodies are not penalized for deficits that do not exceed three percent of their approved levy estimate, provided these deficits are addressed in the following fiscal year's levy estimate. Overall, the bill aims to provide clearer guidelines for local fiscal bodies in managing their financial obligations while allowing for some flexibility in contract terms.

Statutes affected:
Introduced Version: 11-8-26