Caelan Bailey Published

Morrisey Breaks Down Budget Gaps, Will ‘Try To Unpack’ Trump Administration’s Federal Funding Freeze

man stands at a podium speaking with a yellow legal pad in front of him and a whiteboard standing to his left
Gov. Morrisey speaks at a Jan. 28 press conference.
Caelan Bailey/West Virginia Public Broadcasting
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At Tuesday’s press conference, Gov. Patrick Morrisey started writing budget lines items on a whiteboard: $67 million to maintain PEIA, even with recent premium, copay, and deductible increases; and $153 for state Medicaid match previously funded with one-time funds. In the face of costs like those, Morrisey said that “third grade math would understand” his administration’s upcoming budget proposals.

“We’re meeting with all of our cabinet secretaries to discuss the budget,” Morrisey said. “Yesterday, we spent most of the day doing that going line by line, and this is the first time I think you’ve seen that level of activity in a while.”

During his first week in office, Morrisey outlined a projected $400 million budget deficit for the upcoming fiscal year – a stark contrast to the fiscal health outgoing governor Sen. Jim Justice projected at the end of his term.

Those budget issues come after years of state tax cuts and economic policy passed without long-term fiscal projections. Morrisey said he would release six-year projections alongside his proposed budget on Feb. 12, the first day of the legislative session.

“Number one, these are all things we’ve inherited,” Morrisey said. “We’re going to overcome our challenges. We are going to be that shining state in the mountains, but we’re going to have to change how we do things.”

Morrisey said the solution will come in the form of structural budget cuts, continuing with his aim of “rightsizing” and cutting down on government size.

“I want to be really clear, there will be no new taxes in our budget, none, period,” Morrisey said. “I’m not looking to increase taxes.”

The state’s budget issues come during a year when pandemic-era funds are already lapsing. Then, this week the Trump administration announced a freeze on continued disbursement of many federal funds, effective 5 p.m. Tuesdayday, with a reevaluation of program funding to follow.

Morrisey acknowledged federal funds make up almost half of West Virginia’s state revenue, estimating $19.9 billion in total.

We’re going to try to unpack that and talk with the Trump administration about that,” Morrisey said.

Morrisey also rounded out his cabinet by naming Ryan Kennedy Secretary of Department of Veterans Assistance, Jim Mitchell superintendent of the state police, and Jim Seward as Adjutant General – who will now also oversee the Department of Homeland Security.