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West VirginiaHB 45742026 Regular SessionHouse

Relating to providing for condition-based emergency funding for a financially distressed county.

Sponsored By: Pat McGeehan (Republican)

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Senate Education

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 2 costs, 1 mixed.

School finance misconduct brings job bans

When a county receives emergency school funds, employees with primary control over finances face mandatory penalties for directly causing specified financial mismanagement. They must be barred from financial jobs in West Virginia public education for at least two calendar years. Before the ban applies, employees must receive written notice and a chance to respond. The State Board must remove them from current financial positions in the distressed county within 30 days after funding arrives. That removal lasts through the end of the current fiscal year.

Distressed counties face financial misconduct reviews

Within 30 days after a county applies for emergency school funding, the State Board must review the prior 12 months. It checks for required reserves missing for two consecutive reporting periods without a corrective plan. It also checks for late or materially inaccurate financial reports, audits, or state school-system data, and approved spending above gross revenue for more than one fiscal year. County and school district officials in financially distressed counties, including school board members, face removal for misconduct, neglect, incompetence, or other legal grounds. A county commission resolution, county prosecutor, or petition from qualified petitioners can bring charges through the state’s existing removal process.

Loan counties face stricter spending controls

Counties receiving emergency school loans must give the State Board financial information when asked and follow state school reporting rules. They must use the West Virginia Education Information System’s controls to block spending beyond available fund balances. To remain eligible, counties must set up the State Auditor’s West Virginia Checkbook reporting system within 45 days after receiving money. Counties are also subject to the Freedom of Information Act. The law also includes reporting to the legislative education oversight commission.

Emergency school loans carry repayment costs

Effective upon passage, the law lets financially distressed West Virginia counties seek emergency school loans. County reserves must be below 5% of available funding. The county must also be in deficit or on the state education department’s latest at-risk watch list. During an intervention, the State Board of Education may establish the Temporary Shortfall Supplement Fund when school board actions cause or threaten a temporary shortfall. Spending requires legislative funding. Loans can cover staff obligations and essential operating costs for the rest of the fiscal year; the State Board decides which costs qualify. Counties must repay the amount used by December 31 of the calendar year after the appropriation, with at least 3% annual interest. The State Board sets the rate in writing, and the county board must agree. The State Board may review other county funds and use identified money for repayment. Repayments go to General Revenue, and unused appropriations return there on September 30 of the following fiscal year. The fund remains available for future shortfalls when the Legislature provides money.

Sponsors & Cosponsors

Sponsor

  • Pat McGeehan

    Republican • House

Cosponsors

  • Vernon Criss

    Republican • House

  • Mark Dean

    Republican • House

  • Clay Riley

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 275 • No: 6

House vote • 1/19/2026

Effective from passage (Roll No. 6)

Yes: 94 • No: 0

House vote • 1/19/2026

Passed House (Roll No. 5)

Yes: 91 • No: 2

House vote • 1/19/2026

Dispensed with Constitutional Rule (Roll No. 4)

Yes: 90 • No: 4

Actions Timeline

  1. Introduced in Senate

    1/20/2026Senate

  2. To Education then Finance

    1/20/2026Senate

  3. To Education

    1/20/2026Senate

  4. Introduced in House

    1/19/2026House

  5. Originating in House Finance

    1/19/2026House

  6. Reference dispensed

    1/19/2026House

  7. Immediate consideration

    1/19/2026House

  8. Read 1st time

    1/19/2026House

  9. Dispensed with Constitutional Rule (Roll No. 4)

    1/19/2026House

  10. Read 2nd time

    1/19/2026House

  11. Read 3rd time

    1/19/2026House

  12. Passed House (Roll No. 5)

    1/19/2026House

  13. Effective from passage (Roll No. 6)

    1/19/2026House

  14. Communicated to Senate

    1/19/2026House

Bill Text

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