OPINION: Decisions Are Made By Those Who Show Up

Editor’s Note: This post reflects the views of the author and does not represent the views  of West Virginia Public Broadcasting. 

There’s an old episode of The West Wing where the President stands in front of a crowd of students and tells them, “Decisions are made by those who show up.”

 

It’s a statement that rings true. Be it at the ballot box or state Capitol, you have to show up if you want your voice to be heard.

 

It’s a truth I wish our Governor would learn and take to heart.

 

For the past several weeks, we’ve been bombarded with headlines that indicate something’s not right with government in Charleston.

 

From victims of the 2016 floods still waiting on the help they desperately need and have been promised, to the firings of senior officials at the Department of Commerce, to questions of the ethical involvement of prominent business interests in state government, to the cloud over the once-promising China Energy deal, one can’t help but question whether the leadership in the executive branch has been asleep at the wheel.

 

Meanwhile, the Governor has taken offense and deflected blame when questioned on these topics. He’s scolded the media for writing stories about these matters instead of the flowers at the Capitol.

 

I, for one, am grateful for the investigative journalists who’ve risen up in the face of a media blackout to pursue legitimate stories about our government failing to meet the needs of its citizens. (And for the record: this administration’s line of communications with the Legislature isn’t much better than the one it has with the press.)

 

While the Governor has been insulted by this question, one can’t help but ask: Would these situations have been prevented if he’d actually devoted his efforts full-time to working at the Capitol?

 

The Governor has said he’s in constant communication by phone with his staff when he’s not in Charleston, but I don’t think that’s good enough.

 

Our Constitution created a government with a part-time Legislature. It envisioned legislators who hold private-sector jobs and can bring a wide array of experience to the legislative branch.

 

But this is not the case with the executive branch. Our Constitution lays out very clearly that our Governor must reside at the seat of government so he can be a full-time chief executive, present to oversee the daily business of government.

 

Unfortunately, I know many of our part-time legislators spend more time at the Capitol looking after the people’s interests than our Governor. This is not how the system was designed to work.

 

The Governor once described his leadership vision as that of a coach. It’s not a bad metaphor.

 

But Bob Huggins doesn’t just show up for pre-game workouts, give a pep talk, go home, phone in adjustments at the half, then show back up for a post-game press conference. He’s there every step of the way, watching the action, telling his people what to do, and making sure no element of the game goes without his notice.

 

If Jim Justice ran his administration like Bob Huggins runs his team, I’d have no doubt that this administration would have avoided many of the negative headlines of recent weeks.

 

Politically, these are not comfortable words for me to say. Jim Justice and I are, after all, both Republicans and supposedly on the same team. But there comes a time when you have to call a spade a spade and put the interests of state ahead of political affiliation.

 

I’ve been deeply disturbed by the news of late, both the things that have been published and things heard inside the Capitol. There now seems to be a revolving door in this administration, with senior staff departing, fired, or rumored to be on the way out. It’s unclear who is in charge these days.

 

This is not the way to run a state.

 

This all comes as West Virginia is beginning a remarkable comeback from years of economic turmoil.

 

In one way, the Governor is right: We should be talking about all the great things happening in West Virginia. Employment is rising, coal jobs are returning, our budgets are running surpluses instead of deficits, businesses have confidence to invest again and our workforce is growing.

 

We’ve worked hard to right our ship of state, made tough choices to balance budgets without unreasonable tax increases, removed our status as a “Judicial Hellhole,” slashed burdensome regulation, improved our reputation with job creators, and provided public employees with the largest pay increase in modern history.

 

Unfortunately, these self-inflicted, unforced errors in the executive branch have detracted from the positive environment that Republican leadership in the Legislature has worked tirelessly over the past four years to create.

 

The bottom line is this: It’s time for Jim Justice to decide if he’s going to be a part-time Governor while tending to his own businesses back home, or if he’s going to devote himself fully to the job to which he has been elected.

 

Decisions are made by those who show up. It’s time to start showing up.

 

Republican Delegate and House Finance Chairman Eric Nelson represents the 35th District, which includes portions of Kanawha County.

 

 

Finance Chair: Tax Reform Still Alive in W.Va. Legislature

Yet another plan to restructure taxes in West Virginia has been taken up by members of the House of Delegates.

The House Finance Committee was presented with their version of a Senate Bill 484 during a Saturday afternoon meeting.

The bill was initially presented to lawmakers by Gov. Jim Justice as a sweeping tax increase, raising some $450 million in new revenues.

As it passed out of the Senate, though, the measure only included recapturing some $12 million in annual sales tax revenue generated from some road construction purchases. Those funds are typically transferred to the state Road Fund, but the Senate’s bill would keep them in general revenue for legislative appropriation.

On Saturday, the House Finance Committee was presented with a new version of the bill that goes above and beyond that measure, and essentially refutes the economic theory behind previous tax reform measures considered in the Senate.

The new House version of Senate Bill 484 is a “broadening the base” measure, according to House Finance Chair Eric Nelson. It still contains the capture of state Road Fund dollars, but also gets rid of several exemptions in the consumer sales tax in two phases.

Credit Perry Bennett / West Virginia Legislative Photography
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West Virginia Legislative Photography
The House Finance Committee during a February meeting.

On July 1 of this year, salon services, contracting services, and cell phone bills would be subject to the sales tax. The exemptions for gym memberships, electronic data services, primary opinion research, and some direct use services would end on October 1.

On July 1, 2018, the bill would reduce the states 6 percent sales tax to 5.5 percent. It would again reduce to 5 percent on July 1, 2019, and 4.75 percent on July 1, 2020.

Unlike previous tax reform measures considered in both chambers, this version of the bill does not make changes to the personal income tax.

In all, analysts say the changes to the sales tax alone in the bill would result in a $137 million increase in revenues in the 2018 fiscal year, a $56 million reduction in 2019, a $66 million reduction in 2020, and a $125 million reduction when fully implemented in 2021.

House Finance Policy Analyst Fred Lewis told members of the committee, though, that the reductions in revenue do not account for any potential growth in spending the state could see as a result of a lower sales tax rate.

When fully implemented, the rate would be the lowest of any state to border West Virginia. Kentucky, Maryland and Pennsylvania have a 6 percent consumer sales tax. Ohio’s is 5.75 percent and Virginia’s 5.3 percent.

Credit Will Price / West Virginia Legislative Photography
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West Virginia Legislative Photography
Senate Finance Chair Mike Hall on the Senate Floor.

The plan is the exact opposite of what Senate Tax Reform Committee Chair Robert Karnes had pushed through his committee. The Senate’s tax reform plan– although it went through many iterations– was based on the idea of increasing the consumer sales tax while reducing personal income taxes. Karnes argued that would incent economic growth in the state.

“Over here there’s no argument that getting rid of the income tax will cause you to grow. It’s the lowering of the sales tax so it’s just an opposite view,” Senate Finance Chair Mike Hall said after the meeting. Hall attended to hear the presentation of the House’s version of the bill.

“The theory is that we’re 70 percent a border state so I guess the thinking is that if you lower the consumption taxes to lower than your surrounding states that may, on the margin, attract people to come or at least not leave the state to buy things,” he said.

Still, Hall said the generation of some $140 million in new revenues for the 2018 fiscal year due to the end of some exemptions and the recapturing of the Road Fund dollars may not be attractive to the Senate.

“You’re still raising taxes in terms of though you’re lowering the rate, you’re taxing new things,” he said. “There doesn’t seem to be much appetite for tax increases in the Senate right now, at all, even from broadening the base.”

“If the revenue estimate increases one penny over last year’s revenue estimate there appears to be, among the leadership, a resistance to that at this point.”

The House Finance Committee will continue discussion of the bill Monday morning.

Should the chamber approve the amended version, Senate Bill 484 would have to go back to the Senate for its approval. If Senators refuse the House version of the bill, it will go to a conference committee for a final version to be negotiated.

Road Funding Bill Slowing in House Committee

The House Finance Committee will continue debating a bill Tuesday morning that would increase Division of Motor Vehicle fees and some taxes to help fund road maintenance and construction projects.

The House Finance Committee began debating Senate Bill 555 Monday afternoon, but after an hour of discussion, Chairman Eric Nelson moved to lay the bill over until Tuesday morning.

As approved in the Senate, the bill adds a trigger to increase the state’s gasoline tax by 3 cents when the wholesale price of a gallon drops below $2 dollars, but also generates dollars for the state road fund through increased taxes and fees.

A House Finance Subcommittee of seven members discussed the bill on Friday, and suggested the committee as a whole move forward with caution because of the included increases.

There are two pending amendments to the bill that were suggested by the subcommittee. Those amendments are expected to be discussed further when the committee meets again Tuesday.

Sales Tax Bill Dead in the House

Members of the House of Delegates have killed a bill that would have reduced the state’s consumer sales tax while removing exemptions for certain types of professional services.

House Bill 2704 was tabled on a 92-2 vote in the House.

On Saturday, the bill was passed out of the House Finance Committee and also pushed forward on first reading.

The committee version of the bill would have reduced the state’s sales tax to 5.5 percent beginning January 1, 2017, while closing loopholes in some services that are exempt from the tax.

It was expected to bring in an additional $70 million dollars in the first calendar year, imposing the tax on legal, accounting and engineering services, just to name a few. After that, the bill proposed continued to reduce the sales tax, aiming to reach 4.75 percent by January 1, 2020.

House Finance Committee Chairman Eric Nelson said both sides of the aisle had concerns and leadership felt it was best to table the bill.

Minority Leader Tim Miley made the motion to table the bill initially Monday afternoon, but his motion was rejected.

House to Take Up Funding Bills Monday

Lawmakers continue to move forward with legislation to balance this year’s budget, and three of those bills will be up for a vote in the House of Delegates on Monday.

Senate Bills 342, 357, and 360 are all aimed at balancing the 2016 budget.

Governor Tomblin’s budget officials say the state will end the fiscal year in June with a nearly $400 million budget gap and West Virginia lawmakers are constitutionally required to balance the budget each fiscal year.

House Finance Chairman, Delegate Eric Nelson of Kanawha County says the three Senate bills were introduced on behalf of the governor and complement each other.

“In an overall summary, they’re basically moving expenditures from Medicaid, from the General Revenue line item, over to Lottery,” Nelson explained, “and so the very first bill that’ll be up is expiring $53 million from General Revenue and moving that to Lottery and within that is roughly $9.8 million for title 19 programs, or senior services, and a follow up bill basically requires immediate expenditures out of Lottery for that $9.8 [million] to help fund the title 19 programs in this fiscal year of 2016, then there is another $10 million that’s being expired out of Lottery to fund other Medicaid services leaving roughly 34 million that will be covered in next year’s fiscal year.”

All three bills will be up for a vote on Monday in the chamber. Combined with funding measures being considered in the Senate and actions already taken by the governor, Nelson says the state is in good shape for the current fiscal year, despite a debate lawmakers had on the floor earlier this week.

Democrats are pushing the Republican majority in the House to take on funding shortfalls for PEIA, the state’s public employee health care program, but Nelson says that’s a task for the 2017 budget.

“Our current fiscal, which ends in June, we’re fully covered; the employees, there is no change, and so what we’re looking at into next fiscal year 2017 that begins July 1, the Governor’s proposed $40 some million dollars of new monies that will basically on an 80/20 split, it’ll be a shared premium adjustment for the employer as well as the employee.”

The governor’s new monies Nelson refers to would come from an increase to the state’s tobacco tax- something that has not yet been proposed to the chamber.

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