Special Session Fails To Pass Income Tax Cut Or Childcare Relief, Advanced Nuclear Regulations

The West Virginia Legislature came together today in a Special Session. 

In comments leading up to the special session, Gov. Jim Justice said he called the legislature to address three main issues: pass supplemental appropriations bills, cut the income tax by five percent, and give parents whose children are in daycare some tax relief. 

The legislature only did one of those things. 

Both the House of Delegates and the Senate suspended rules and passed supplemental appropriations bills. Those bills divy out surplus money that the state has to different state organizations. 

Together the chambers passed six appropriations bills. Those bills sent money to the Department of Education, The Department of Transportation and Division of Highways, Department of Veterans Assistance, The Department of Homeland Security and the West Virginia State Police, Higher Education, and the State Board of Education. 

A total of 27 bills were introduced into both chambers. 

Two bills that the House sent over were not considered by the Senate.

One was HB 205, which would appropriate $15.675 million towards West Virginia National Guard projects.

Nuclear Regulations

The other was HB208, which would make West Virginia an agreement state with the United States Nuclear Regulatory Commission, passed with the smallest margin of 73 yays out of 91 votes cast.

Thirty nine states are currently part of the U.S. Nuclear Regulatory Commission. HB208 would shift nuclear waste management from the federal government to the state’s health department.

The House discussed HB208 for about 40 minutes. Lawmakers from both sides of the aisle expressed concerns around the bill being pushed during a special session.

Delegates in support of HB 208 pointed to a 2023 bill HB2896, which would have the United States Nuclear Regulatory Commission but would have cited state level regulation with the Department of Environmental Protection, saying the issue had passed the House with a wide margin before. HB2896 stalled in the Senate.

“I think I even voted for a bill like this before,” Del. Jim Butler R-Mason, who voted against HB 208, said. However, he continued that the risks of low-level radiation gave him pause about pushing the bill in a Special Session. 

“I have some concerns about this, and I don’t know if anyone else has given this very, really serious consideration, and I don’t know if there’s really a rush that we have to do this during this special session,” Butler said.

Del. Todd Longanacre, R-Greenbrier, also spoke against the bill.

“I want to see nuclear power come to West Virginia, I have to make a decision on behalf of my constituents back home, who’s probably just as confused right now,” Loganacre said.

Lawmakers also expressed concern about the bill opening up West Virginia to out-of-state nuclear waste storage and corporate projects. Del. Henry Dillon, R-Wayne, raised a 2022 Mingo Messenger article on Curio, a nuclear waste company, seeking to build in the state.

Del. Bill Anderson, R-Wood, rebuked concerns and spoke in favor of the bill.

“I can assure you that as chair of the Energy Committee and manufacturing committee of this state, I’ll have no part in opening large scale nuclear waste disposal facilities in this state, period,” Anderson said following the House adjournment.

Income Tax

Justice put a five percent personal income tax reduction in the call for the legislature’s second special session. This comes after the legislature has passed multiple tax cuts since Justice took office. *

Sen. Eric Tarr, R-Putnam, said based on the legislature’s calculations the state cannot afford that tax cut. 

“I’m doubtful, and the reason I’m doubtful is just because the revenues are coming in slower than they have for the past few years,” Tarr said. “Right now, we’re under estimates for the year, on estimates that are probably already low estimates.”

However those estimates are based on Senate Finance calculations. Tarr said he would like to see the governor’s numbers. However Justice, unlike previous governors, has not delivered a five year projected fiscal analysis of proposed budgetary legislation — like this tax cut. 

Tarr says without the governor’s numbers to prove otherwise, it’s hard to see where the money will come from to make up for the lost revenues without running a deficit. 

“That’s part of going into things eyes wide open, you know? So it’s very important to have a forecast of revenue and expenses that are on the book,” Tarr said. 

Across the hall, the House introduced House Resolution 1, which would require the House to receive that five year fiscal analysis from the state Tax Department before imposing a tax cut. 

Childcare

The House introduced a bill that would give parents a 50 percent tax cut to their state income tax based if their children are enrolled in childcare. That bill will likely be considered starting on Sunday. 

Childcare has been an ongoing issue in the state, with parents and childcare providers asking for a change in state policy. There are an estimated 20,000 children needing a spot in day care.

However after multiple tax cuts, and expiring pandemic era federal funds, some lawmakers worry if there is space in the budget for another tax cut. 

Tarr is concerned that the tax cut may cost taxpayers money without delivering any economic development. 

“You’re playing favorites when you do tax credits,” Tarr said. “To me, that doesn’t help with West Virginia’s competitive ability in the market nationally to attract people and to attract businesses.” 

Others, like Sen. Oliverio, R-Monongalia, said this bill is a step in the right direction. 

“It’s going to take some additional dollars, but I don’t know of any place where we could invest more dollars and have a greater return,” Oliverio said. 

He said that the state could benefit from many types of childcare reform like TriShare where employers, employees, and the state are all putting some money towards childcare which he says could help childcare facilities stay open, and help parents have access to high quality care. 

House Democrats held a caucus press conference following adjournment, where legislators critiqued the special session’s lack of action on childcare and children’s issues.

 “It’s not necessarily what’s on the call this legislative special session, but what’s not on the call,” Del. Shawn Fluharty, D-Ohio, said.

“We’ve had a lot of issues regarding children in this state, regarding rules along homeschooling and keeping children safe, and they were unable to do  anything about that in the special session,” Del. Mike Pushkin, D-Kanawha, said.

The Legislature will reconvene on Sunday, Oct. 6 at 6 p.m. to consider the remaining bills.