Legislative Interims Story Archives - West Virginia Public Broadcasting

State Budget Revenue Healthy, Officials Unsure About Tax Cut Trigger

State revenue is solid for the year, and over estimates, but down from last year because of personal income tax reductions and severance taxes.

West Virginia tax collections are higher than estimated, but it is unclear if another personal income tax cut will happen in 2025.

Legislators heard Monday from Mark Muchow, the deputy secretary of the state Department of Revenue, about 2024 budget revenue numbers.

“After nine months, the state has collected more than $4.07 billion. That’s $522.9 million above estimate,” Muchow said. “It’s down from last year by 11.6 percent, which is pretty good considering that we cut the income tax by 21.25 percent and some reductions occurred in the severance tax as well.”

Muchow said personal income tax collections are $184.1 million above estimate for the year. He explained that it is down 9.4 percent year to date over last year.

“Again, 9.4 percent is pretty good considering that we cut the tax rates by 21.25 and the income tax as a whole was over 40 percent of general revenue fund collections,” Muchow said.

Severance taxes on coal, gas and oil were budgeted for just $22.1 million for this fiscal year to date. So far, the state has collected $48.129 million. That sounds promising, except the previous fiscal year brought in nearly $85 million at this point in 2023 and is off more than 43 percent.

Since taking office, Gov. Jim Justice has maintained relatively flat budgets and kept budget estimates low as well. That has guaranteed annual budget surpluses. Over the last few years, they have topped $1 billion each fiscal year.

Last year, when the West Virginia Legislature passed the personal income tax cut, the bill included triggers that would further reduce those taxes. The triggers are tied to budget surpluses.

Del. Larry Rowe, D-Kanawha, asked about the trigger mechanism during Monday’s meeting.

“Are you able to project whether the August trigger is going to come into play or not?” he said.

“It’s too early for us to do that type of projection. There’s a lot of revenues outstanding. I do believe that the income tax is going to trend lower over the final, at least over the April, May period, [it] may bounce back in June,” Muchow said. “But there’s too many variables out there to make a good, firm analysis on the trigger.”

“When do you think you’ll comfortably be able to make that calculation?” Rowe asked.

“We will not have a complete idea till the end of June,” Muchow said. “But we’ll have a better idea for the end of April. And even better at the end of May. So by the end of May, things will be a little bit better in focus than they are today.”

“So if we were to have a special session in May, and that has been discussed, then you may have the numbers you need to calculate whether the August trigger will come into play?” Rowe asked.

“We’ll have a better idea, but not a perfect idea,” Muchow said. “Again, there’s a number of variables outstanding that we’d have to consider in that equation.”

The Legislature is expected to return to Charleston for a special session on the budget in mid-May following the election but before the end of the month.

W.Va. Analysts Develop New Tech To Visualize Flood Risks

West Virginia geospatial officials are developing new technology to help visualize flood and landslide risk in the state. The project aims to create more accessible and updated community-level flood risk data.

April storms have caused flooding across West Virginia, from the Northern Panhandle to the state capital.

Flooding events like these are familiar territory for many residents. According to the West Virginia GIS Technical Center, 286 communities across the state are located directly on flood plains — areas adjacent to waterways that can become inundated by rising water levels.

The center has long worked to identify flood risks through digital mapping software. On Sunday, state analysts presented new developments in this effort to the West Virginia Legislature’s Joint Legislative Committee on Flooding.

Currently, the center is working to strengthen local flood risk data and to create data visualization tools more easily understood by members of the public, according to Co-Director Aaron Maxwell.

Often, emergency management data comes from the federal level, which limits the level of detail available on the local level.

The center is working to update structural and flood plain data across the state to “support the public and flood plain managers in flood-prone communities,” and to develop a “higher grain of detail than what’s available with federal tools,” Maxwell said.

Last year, the center began developing the West Virginia Flood Resiliency Framework through a grant from the National Science Foundation (NSF). This has allowed the center to develop mapping and modeling tools on flood risk and resiliency across the state, Maxwell said.

Beyond modeling how waterways and properties would be affected by rising water levels, Maxwell said the center is also conducting a statewide survey to assess how residents feel about flood risks and recovery efforts in their community.

The center will then flesh out additional reports on flood risk preparedness locally, Maxwell said.

By providing resources like new data visualization software and survey reports to the public, Maxwell said the center hopes to bolster “data-driven decision-making in the state,” like corroborating emergency relief grant requests with concrete data.

Maxwell also said that the center has been working with West Virginia’s State Resiliency Office to compile these resources into a “one-stop shop for people to go to, to investigate their flood risk.”

This furthers the center’s goals of providing more accessible data for the public. Pulling it all together in one location is easier for every-day residents, like how 3D visualization tools are more easily understood than convoluted or industry-specific information, Maxwell said.

Aaron Maxwell, co-director of the West Virginia GIS Technical Center, speaks to members of the West Virginia Legislature Sunday.

*Photo Credit: Perry Bennett/WV Legislative Photography*

The center is also working to develop tools that can assess risks associated with flooding, like landslides.

Kurt Donaldson, geographic information system (GIS) manager at the center, said that landslides are the second most costly form of natural disaster to West Virginia, second only to flooding.

“Just where West Virginia is, with the steep slopes, landslides are always an issue,” he said during the committee meeting Sunday. “Sometimes they get categorized as flood-damaged structures when it was associated with a mudslide.”

Donaldson said that the center is developing a state landslide susceptibility grid.

Like the flood risk visualization maps, these aim to convey to local officials and members of the public emergency risks present in their communities. “It can be useful for identifying areas that are susceptible to landslides,” he said.

While the center will continue to work on the project in the coming months, Maxwell said their NSF funding ends in October, requiring sustainable, long-term funding resources to keep data up to date.

Sen. Chandler Swope, R-Mercer, said that flood risk management is often overlooked in financial discussions within the Legislature, which he views as an oversight.

“Flooding has been, in budget terms at least, virtually ignored for 100 years,” he said during Sunday’s meeting. “We’ve got the other highways, water, sewer, broadband, et cetera infrastructure, but flooding is not on our agenda as a major infrastructure need for West Virginia.”

Swope said that he and members of the Legislature should prioritize flood risk mitigation funding in upcoming financial discussions.

“As money becomes available after other infrastructure needs are met, I think we should give serious consideration to doing what we can for flood mitigation, and we’ll choose the highest priority places first,” he said.

Swope also said that preventing damages associated with natural disasters like floods would ultimately limit state spending on emergency response efforts.

“It’s not an expense that wouldn’t pay for itself with the proper application,” he said. “If this information had been available 100 years ago, there might be a lot of towns and cities that have a lot less damages due to floods.”

To participate in the West Virginia GIS Technical Center’s flood resiliency survey, visit the center’s West Virginia Flood Resilience Framework website.

For more information on local flood risk in West Virginia, visit the West Virginia GIS Technical Center’s West Virginia Flood Tool.

This 3D model from the West Virginia GIS Technical Center shows how rising water levels would affect a West Virginia home.

*Image Credit: West Virginia Flood Tool/West Virginia GIS Technical Center*

OmniTrax Will Continue Operations Of Potomac Eagle

OmniTrax took over operations of the South Branch Valley Railroad on Dec. 1. The company told legislators a month into its 40 year lease with that state, that it plans to continue the operations of Potomac Eagle, a scenic passenger train.

Denver-based OmniTrax operates 27 shortline freight railroads nationwide.

The 52-mile stretch of rail connects Petersburg to Green Spring, where it interchanges with CSX. It is the company’s newest acquisition.

In 2019, OmniTrax acquired the Winchester & Western Railroad operations, making the South Branch Valley Railroad its second operation acquisition in the state. However this will be the first scenic tourism train in the company’s entire operating portfolio.

Stacey Posey, vice president of operations for OmniTrax’s central region, said the company will not only retain the Potomac Eagle scenic passenger train but that it has ongoing discussions to expand the operations. He said state officials told him that it was important that the Potomac Eagle be protected, and even though he has no experience running a tourism train, he is committed to maintaining the Potomac Eagle.

“I was in Chicago for eight years and we would run 120 trains a day, I think I can run two or three trains a day on the South Branch and not mess with that (the Potomac Eagle) train at all,” Posey said. “It will run on time, it will continue to run and we will continue to support the Potomac Eagle as they grow.

The Potomac Eagle operates during the summer and autumn, and usually has around 44,000 passengers a year.

OmniTrax has an agreement with the state for a 50/50 rail maintenance cost split with the state. However, as utilization of the South Branch Valley Railroad increases, so will OmniTrax’s percentage cost share.

The largest freight customer is Pilgrim’s Pride in Moorefield. Rail shipments of grain support the company’s poultry operations in the area.

“As carloads grow, we assume more maintenance and more responsibility for the maintenance,” Posey said.

Lawmakers Fear Overlap In Newly Separated DHHR

The Office of Shared Administration will operate the newly separated West Virginia Department of Health and Human Resources starting Jan. 1 during a meeting of the Legislative Oversight Commission on Health and Human Resources Accountability.

The Department of Human Resources touches the lives of many West Virginians in one way or another. But the legislature determined that it was too large to be effective and split it into three departments: the Department of Human Services, run by Secretary Cynthia Persily, the Department of Health, run by Secretary Dr. Sherri Young, and the Department of Health Facilities, run by Secretary Michael Caruso.

The split takes effect on Jan. 1, 2024. The Office of Shared Administration consists of the three secretaries and heads the new organization.

These three departments will share six offices: the Office of Finance, the Office of Human Resources Management, the Office of Constituent Services, the Office of Communications, the Office of Operations and the Office of Management Information Services.

Young presented a “bird’s eye” view of the organization of the Department of Administration during a meeting of the Legislative Oversight Commission On Health and Human Resources Accountability (LOCHHRA) on Monday.

“This will be the last time that I address you as the interim secretary for DHHR,” Young said. “And in 20, short days, we will be the three departments that we have envisioned working towards.”

She said she anticipated a question and answer session between lawmakers and the heads of each of the six offices shared by the Department of Shared Administration and hoped it would quell lawmakers’ fears about overlap.

“They’re there to tell the story about what they do on a daily basis because it is truly immense the people that they serve and the programs that they cover,” Young said.

Del. Amy Summers, R-Taylor, asked Young if this new system was more efficient than past models.

“It’s very similar,” Young said. “And so when you’ve looked at the reporting structure, there could be some problems with having to go into the three departments. People have adjusted very well.”

Young began her presentation by explaining the Office of Finance, stating that 87 individuals work under Tara Buckner, chief financial officer. She said they oversee planning, coordinating, safeguarding and overseeing the daily financial operations.

Next, Young spoke about the Office of Human Resource Management under Chief Human Resources Officer, Angie Ferris.

“They are managing the benefits and payroll for 5,439 folks across DHHR,” Young said. “That takes about 76 folks.”

Young said the Office of Operations has 32 of 37 vacancies filled. She said this department, operated by George Montgomery, is responsible for the upkeep and management of the state’s health facilities, along with fleet management.

“They manage everything for real estate, making sure that the maintenance and warehouse and any new construction that you have, that these are getting executed as well as the large contracts to complete this work,” Young said.

The Office of Operations also takes care of the mail system within DHHR.

“The amount of mail that goes through that mail system, within a year we get on average 350 to 400 pieces of mail per day, and a staggering 90,000 to 105,000 pieces of mail passing through that office in the bottom of the Diamond building every year,” Young said.

Next, Young explained the structure of the Office of Communications, which contains five workers, two of whom are. Jessica Holstein and Whitney Wetzel. Both are listed as directors.

“We did name two directors so that we would have subject matter experts dealing with the Office of Human Services and then splitting the duties for the Department of Health and the Department of Health Facilities,” Young said.

According to Young, the Office of Constituent Services, directed by John Lopez, connects people with questions about their benefits with people who can help them within the agency.

“For 2021, they had 222,218 calls,” Young said. “For 2022, they had 222,336 calls, of which they answered and assisted folks. So far in 2023, they have had 434,385 calls as of last week. And we’re not quite to the finish line.”

Lastly, Young said that the Office of Management Information Services, directed by Chief Information Officer Shaun Charles, has 134 workers with 18 vacancies.

“They have the West Virginia ed(ucation) system, they support Bureau Medical Services data, both for verification and quality,” Young said. “But they also build and maintain internal and external dashboards.”

Young said she looked forward to letting the heads of the six offices explain their roles to lawmakers on Friday.

Other Action

The commission also considered four draft bills and unanimously passed them to the Joint Committee on Government and Finance for consideration during the regular session.

The first bill would remove “DHHR” from all state code, in line with the restructuring of the department.

The second bill removes a “drop dead date” placed in code which ended the authority of the department to keep foster care and managed care under Aetna management.

The third bill expands upon LOCHHRA’s own power, by allowing them to go into executive session in order to hear information from the departments of health, health facilities, and human services that is not able to be shared publicly.

Additionally, this draft bill would allow LOCHHRA to carry out performance evaluations of the departments.

The final draft bill creates a new chapter for the Office of the Inspector General to enhance its independence and takes the programs that are under the Office of the Inspector General and places those existing programs under the Inspector General.

Attorneys for the legislature called the bill a “reorganization and cleanup.”

The commission moved that all four bills be reported to the Joint Committee on Government and Finance with the recommendation that they will be introduced during the next regular session of the legislature.

Appalachia Health News is a project of West Virginia Public Broadcasting with support from Charleston Area Medical Center and Marshall Health.

12-11-23-LOCHHRA-materials Download

Legislators Hear Update On Plan To Address Teacher Shortage

Now in its second year, the West Virginia Grow Your Own program aims to start students interested in becoming teachers on the path to certification in high school.

Updated on Tuesday Dec. 12, 2023 at 9:30 a.m.

A program aimed at tackling the state’s teacher shortage is growing.

Now in its second year, the West Virginia Grow Your Own program aims to start students interested in becoming teachers on the path to certification in high school. Through the program, interested students begin taking dual-enrollment courses that count towards a teaching degree.

The initiative is one piece of the state’s attempts to address a shortage of more than 1,700 certified teachers across the state.

Jeff Hunter, coordinator of educator preparation for the West Virginia Department of Education, told the legislators of the Joint Standing Committee on Education Sunday evening the 33 participating counties are now averaging 11 students in Grow Your Own.

“We need to have somewhere between 10 and 19 students per grade level participating if we’re going to attack that 1705 teaching teacher deficit that we’re facing now,” he said.

Hunter said the total number of students participating is 345 students up from 235 students last year. He broke down some of the demographics of the participants, including the fact that only 16 percent are male.

“It’s still predominantly a female oriented system,” Hunter said. “It is closely representing what the current teaching population looks like for gender. It does not represent our student population, so we need to have more men focused in education.”

On a more positive note, Hunter said 28 percent of Grow Your Own students are first generation post-secondary attendants.

“That’s incredible, this is breaking cycles,” he said. “This is getting students into an opportunity to do something different for their community, and they will represent their community very well.”

Del. Heather Tully, R-Nicholas, asked Hunter why more counties were not participating, particularly population-dense counties like Harrison, Monongalia, Raleigh and Wood counties. She suggested that perhaps superintendents were unaware of the potential for establishing a teacher pipeline.

“Do we survey students in all of the counties about expressed interest in a program such as this?” Tully asked. “So, say maybe the program is not offered in those four population dense counties though, do we know if students would be interested?”

Hunter said students in non-participating counties were not surveyed but was open to the idea.

“I think that would be telling for the superintendent to understand what their pipeline should and could look like,” he said.

Several legislators asked about tracking students that do not complete or leave the program before being certified as teachers- since the cost of dual credit courses in high school is subsidized by the state.

Hunter said they are tracking completion numbers, but also pointed out they do not have complete enrollment numbers from universities to know how many teachers are leaving more traditional routes.

“It’s not a bad thing if a student decides teaching is not for them,” he said. ”We’ve seen things happen in schools with teachers who should not have made that choice for their route. And we want to encourage them to make the best decision possible for them.”

***Editor’s Note: This story was updated with a correction. Several statements were incorrectly attributed to Sen. Amy Grady, R-Mason, but should have been attributed to Del. Heather Tully, R-Nicholas.

Foster Student Suspended More Often Than Peers According To Report

Students in foster care are suspended from school significantly more often than other students according to a presentation by the state Department of Education to the Joint Standing Committee of Education.

The data was previously presented to the West Virginia Board of Education in May.

Georgia Hughes-Webb, director of data analysis & research for the West Virginia Department of Education highlighted the disciplinary outcomes for foster students.

“This slide was particularly upsetting for me when I put it together,” she said.

The data showed that more than a third of all foster care students were referred for a disciplinary incident, and one out of every four foster care students was suspended from school in the 22 school year.

“More than the overall population when foster care kids got in trouble, they were pretty much guaranteed a suspension,” Hughes-Webb said.

Specifically she said 73 percent of foster care students who were referred for discipline ended up getting a suspension, compared with 55 percent for students who are not in foster care.

Del. Heather Tully, R-Nicholas, asked how outcomes for this group can be improved, and asked if contacting caseworkers was part of the disciplinary process.

Drew McClanahan, director of Leadership Development for the West Virginia Department of Education, said schools have to do a better job of identifying who foster care students are.

“We have situations where maybe a school doesn’t know that that child is in foster care,” he said. “We’re working on general information to provide to principals, secretaries, whoever it may be as far as onboarding, what questions to ask and what supports may be there because if it’s the first time that you’ve had a foster care student in your building, you may not know who the caseworker is or how to contact and whatnot.”

McClanahan said the study has allowed the Department of Education to identify gaps in the school support system for foster care students that can now be addressed.

Several lawmakers focused on the role of alternative learning centers as a place to isolate disruptive students.

Del. Dana Ferrell, R-Kanawha, asked about the cost of this approach, pointing out the requirement of not only a salaried teacher but also potentially an entirely separate building depending on how a county chose to structure their center.

McClanahan agreed that cost is a factor for schools and districts, and highlighted some other options that have been explored.

“Looking at doing an in-school suspension alternative, looking at doing some sort of restorative practices, we have seen districts that have looked to choose counseling programs, counseling referrals, both in school and out of school meetings and legitimate conversations and working relationships with parents and parent organizations,” he said.

Last month, the Department of Education launched a public, statewide dashboard on ZoomWV to promote transparency and accountability around school discipline.

Ferrell questioned the wisdom of making that data public.

“I really am concerned with that,” he said. “A few years back, we had a suggestion that schools be given a letter grade A, B, C, D. That was quickly pulled back and done away with because from an economic development standpoint, who wants to locate their family and a business, an area where that school has a disproportionate amount of discipline issues?”

McClanahan likened the disclosure to posting test scores.

“This is in the spirit of transparency to make sure that we have a clear understanding of exactly what’s going on inside of our public schools, that members inside of that community deserve to understand what is going on,” he said.