State Revenue Down, But Still Ahead Of Estimates

West Virginia’s state revenue is down from last fiscal year by 12 percent. Despite the decrease in income, the state is exceeding revenue estimates by more than $522 million.

West Virginia’s state revenue is down from last fiscal year by 12 percent — a difference of more than $500 million.

In March 2024, the state collected about $487.4 million. That is nearly $95 million over revenue estimates, but 6 percent lower than what it collected in March 2023.

Sean O’Leary, senior policy analyst with the West Virginia Center on Budget and Policy, attributed the change to personal income tax cuts passed last year.

In 2023, Gov. Jim Justice cut personal income tax in the state by more than 20 percent, the largest tax cut in the state’s history.

Proponents of the cuts saw it as a way for residents to keep more money from their paychecks. But others worried decreasing state funding would make it harder to keep up with infrastructure needs.

O’Leary said that the decrease in state funds has reduced Medicaid and higher education resources in the state.

He also said that a collapse in natural gas prices has further reduced taxable revenue sources for the state.

Still, despite the decrease in income, the state is exceeding revenue estimates by more than $522 million.

Budget estimates are set by the State Budget Office, a staff agency for the governor.

Justice has expressed optimism over the surplus, despite the decrease in revenue and a dip below state estimates in February.

“We’ve shown time and time again that when we put West Virginians first, and prioritize their needs and wants, it propels our rocket ship higher,” Justice said in a Monday press release.

Legislators Respond To Justice Budget Blowback

Lawmakers are responding to Gov. Jim Justice’s recent statement that the lack of health and human services funding in the recently passed budget is “a dog’s mess.”

Lawmakers are responding to Gov. Jim Justice’s recent statement that the lack of health and human services funding in the recently passed budget is “a dog’s mess.” 

Even though Justice signed the nearly $5 billion budget bill, he said in a Thursday media briefing that he blames the gaps in health care and human services allocations on legislative leaders not listening to experts and setting their own agendas.

He’s considering calling the House and Senate back for an April special session to rework the budget. Some of the issues involved are childcare, disability and foster care initiatives not addressed. 

Del. John Williams, D-Monongalia, and a House Finance Committee member, said he’s concerned that the fear of a $465 million federal claw back on the use of COVID-19 emergency education funding may be a smokescreen for mismanaged revenue collections and tax cuts.   

“With inflation, in reality, we know that a flat budget is not a flat budget,” Williams said. “You’re seeing essentially reductions every year, and so we need to do a better job of investing in our people.”

Several lawmakers say the passed budget was simply a starting place.

House Health and Human Resources Committee Chair Amy Summers, R-Taylor, is also a House Finance Committee member. She said she pushed for the health care and human services allocations, and continues to seek further support for those with intellectual and developmental disabilities. 

“I have requested that the Finance committees really look into the waiver programs, maybe a deep dive from the Department of Human Services,” Summers said. “Sen. Tarr has a different idea about those programs than perhaps what the House does. So we need to understand that better, and find ways that we can ensure we’re taking care of our most vulnerable people.” 

Summers said the state is also waiting on a federal follow-through to enhance child day center funding.

“We’re waiting on the federal government to tell us if they’re going to start providing enrollment versus attendance,” Summers said. ”If that comes from the federal government, then part of those monies will probably come from them as well. But we do realize how important childcare is to get people back in the workforce. So it’s something that we are interested in looking deeper into.”

Justice Says He Will Call Special Session Before Primary Election

Gov. Jim Justice said he will call a special session of the state legislature to address budget priorities missed in the regular session. 

Gov. Jim Justice said he will call a special session of the West Virginia Legislature to address budget priorities missed in the regular session. 

The governor had already discussed calling a special session in May before the final gavel of the regular session Saturday night. But during a regular briefing Thursday, a visibly frustrated Justice said he is likely to call legislators back to the capitol before the May 14 primary election.

He said the proposed budget was rushed, omitting key tax breaks for families and creating a “big time problem” for the newly formed Department of Human Services.

“We spent a lot of time talking about issues that were more social issues and forgot to budget,” Justice said. “And absolutely at the last minute, we kind of tried to run in and switch this and that and everything else and we made a bunch of mistakes.”

Although he did not name a specific legislator, Justice made several references to a “per se expert” senator who he accused of leading the budget process into problems.

“Please tell me why we didn’t take the time to listen to the people that are the real experts,” he said. “The real experts are the people that have been in our revenue department and absolutely have been a real part of this unprecedented economic run … We didn’t listen to them. We listened to somebody that’s inexperienced, to be perfectly honest, but commands the floor.” 

Justice explained that waiting until after the mid-May elections would push the budgeting process too close to the end of the fiscal year.

“This has got to be corrected before the end of the fiscal year,” he said. “We may very well have to call people back some time in April.”

West Virginia Legislature Ends Session With Pay Raises, Tax Cut And Failure Of Social Issue Bills

West Virginia’s Republican-dominated state Legislature on Saturday concluded a 60-day session marked by budget disputes and controversial social issue bills that advanced but ultimately didn’t go anywhere.

West Virginia’s Republican-dominated state Legislature on Saturday concluded a 60-day session marked by budget disputes and controversial social issue bills that advanced but ultimately didn’t go anywhere.

Lawmakers conferenced behind closed doors Saturday to reach an agreement on a budget just under $5 billion, bills that would cut unemployment benefits, a Social Security tax cut and a 5 percent raise for teachers and other state workers, among other legislation. Those proposals now head to the desk of Republican Gov. Jim Justice, who is expected to sign them.

The Social Security cut and pay raises were passed after the budget process was thrown into chaos this week when lawmakers learned Justice’s office was in negotiations with the federal government over a potential $465 million COVID-19 funding clawback.

Lawmakers debated several iterations of the budget before coming to a final decision, leaving out a number of priority items including a tax credit to make child care more affordable for families and money for a new agriculture lab at West Virginia State University.

Lawmakers intend to meet for a special session to review those items in May, when the situation with the U.S. Department of Education is clearer, the legislative leadership said.

Lawmakers additionally passed bills Saturday to allow the sale of raw milk with a warning label about the increased risk of foodborne illness and allow virtual public school students and private school students to opt out of mandatory vaccines.

Another successful bill would give public school teachers the option to teach intelligent design, the theory holding that certain features of life forms are so complex they can best be explained by an origin from an intelligent higher power, not an undirected process such as natural selection. Intelligent design is overwhelmingly regarded as a religious belief by the scientific community and not a scientific theory.

Social issues dominated most of the conversation during the session, but many did not cross the finish line.

As the clock approached a midnight Sunday deadline to pass bills, Democratic Del. Mike Pushkin dragged out discussion on a proposed constitutional amendment that would have been placed on the ballot to prohibit non-U.S. citizens from voting in West Virginia elections, which is already illegal.

“I just don’t think it’s necessary to change the constitution that’s already in state code, something that isn’t taking place. It’s hard enough to get our citizens to vote,” Pushkin said, checking his watch.

“I would encourage all citizens to vote. Think of who you’re voting for when you cast that ballot,” said Pushkin, one of 11 Democrats in the 100-member House, just as time ran out.

Earlier in the session, the House of Delegates passed a bill to make schools, public libraries and museums criminally liable for distributing or displaying “obscene” materials to children. The Senate never took up that bill or failed bills passed by the House that would have restricted healthcare for transgender adolescents and allow teachers and other school staff with certain training to carry guns on school campuses.

The Senate passed a bill that would have made a video on fetal development produced by an anti-abortion group required viewing in public schools, but the measure failed to advance in the House.

Time also ran out Saturday for House lawmakers to vote on final passage of a “Women’s Bill of Rights,” which was almost sure to pass. Democrats labeled the proposal a dystopian bill that would give women no additional rights while enabling the GOP to suppress transgender people.

The legislation said “equal” does not mean “same” or “identical” with respect to equality of the sexes. The proposed wording in state statutes and official public policies would define a person’s sex as determined at birth without allowing substitutions of gender equity terms. The bill also would establish that certain single-sex environments, such as athletics, locker rooms and bathrooms, are not discriminatory.

The bill was championed by Republican women in the Legislature, including Del. Kathie Hess Crouse, who said “radical feminists” have “sought a world in which men and women are treated exactly the same in every single circumstance, regardless of physical differences.”

“The Women’s Bill of Rights aims to halt this radical agenda,” she said, speaking on the floor in support of the legislation.

The unemployment bill, which was rushed through the legislative process in the final days of session after hours of debate, left some lawmakers confused, even those who chose to support it.

The bill would increase work search requirements for unemployed people receiving benefits and freeze the rates those individuals are paid at the current maximum of $622 a week, instead of a system adjusting with inflation. People also would be able to work part-time while receiving unemployment and searching for full-time work. Current average benefits are around $420 a week.

The bill was a compromise from an earlier version of the legislation that would have reduced the number of allowable weeks for unemployment benefits from 26 to 24 and started benefits at 70% of the recipient’s average weekly wage before losing work and reducing benefits over the amount of time the person is out of work without getting a new job.

Supporters say they were concerned about the long-term solvency of the state’s unemployment fund. But Del. Democratic Del. Shawn Fluharty said the bill sends a bad message.

“Here we are just year in and year out finding ways to chip away at who actually built this state: the blue collar worker,” Fluharty said.

The Social Security tax cut bill follows a law signed in 2019 that cut income tax on Social Security benefits over three years for the state’s lowest earners, defined as those making less than $100,000 filing jointly and $50,000 for a single person.

The proposal approved by the Legislature Saturday would eliminate the tax for everyone else, also over a three-year period. The tax would be cut by 35 percent this year, retroactive to Jan. 1, and 65 percent in 2025. The tax would be phased out completely by 2026.

Lawmakers Debate Budget And Federal Funding Claw Back

On this episode of The Legislature Today, much of the debate Tuesday morning in the House of Delegates focused on satisfying a $465 million federal claw back regarding the state’s spending on education. When it came to the budget debate – some promised program funding not education related – fell by the wayside.

On this episode of The Legislature Today, we are in the final days of the 2024 session, and there is a rush to get bills across the finish line – including the budget bill.

In the House, much of the debate Tuesday morning focused on satisfying a $465 million federal claw back regarding the state’s spending on education. When it came to the budget debate – some promised program funding not education related – fell by the wayside. Randy Yohe reports.

Also, two bills debated in the House Judiciary Committee dealt with two lightning rod issues: crimes regarding married couples and sexual abuse, and setting parameters on teaching scientific theories when it comes to the creation of the universe – and of life. Randy Yohe has more.

School discipline was identified as a key issue coming into this year’s legislative session. But with the session’s end just days away, a key school discipline bill is in question after a contentious committee meeting Monday afternoon. Chris Schulz has more.

Finally, community air monitoring has been a topic of debate this session. House Bill 5018 would restrict how data from the monitors could be used in the regulatory process or in court. But a Senate hearing on the bill Tuesday was canceled, so the fate of HB 5018 is unknown. Also, the West Virginia Office of Energy released a priority action plan last week. Curtis Tate spoke with Morgan King, the West Virginia regional organizer for the Climate Reality Project, and Del. Evan Hansen, D-Monongalia, to get an update on that and other issues.

Having trouble viewing the video below? Click here to watch it on YouTube.

The Legislature Today is West Virginia’s only television/radio simulcast devoted to covering the state’s 60-day regular legislative session.

Watch or listen to new episodes Monday through Friday at 6 p.m. on West Virginia Public Broadcasting.

Lawmakers Look To Budget In Final Week Of Session, This West Virginia Morning

On this West Virginia Morning, as we enter the final week of the state legislative session, we decided to check in with party leaders to see how they feel about the session and whether they met their priorities. Randy Yohe spoke with Del. Mike Pushkin, D-Kanawha. WVPB invited Republican House leaders to join in the discussion, but none were available.

On this West Virginia Morning, as we enter the final week of the state legislative session, we decided to check in with party leaders to see how they feel about the session and whether they met their priorities. Randy Yohe spoke with Del. Mike Pushkin, D-Kanawha. WVPB invited Republican House leaders to join in the discussion, but none were available.

West Virginia Morning is a production of West Virginia Public Broadcasting which is solely responsible for its content.

Support for our news bureaus comes from Shepherd University.

Eric Douglas is our news director and producer.

Listen to West Virginia Morning weekdays at 7:43 a.m. on WVPB Radio or subscribe to the podcast and never miss an episode. #WVMorning

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