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 expending money or incurring obligations in unauthorized manners, for unauthorized purposes, or in excess of allocated amounts. 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 will not be penalized for a casual deficit that does not exceed three percent of their approved levy estimate, as long as the deficit is addressed in the following fiscal year's levy estimate. It clarifies that certain liabilities related to the West Virginia Retiree Health Benefit Trust Fund will not be considered when calculating this deficit. Overall, the bill aims to provide local fiscal bodies with more flexibility in managing their financial obligations while ensuring accountability and justification for multi-year contracts.

Statutes affected:
Introduced Version: 11-8-26