Tag: Rainy Day Fund

House Clashes Over Governor's Funding Bill

On the House floor Friday, Delegates were set to consider a bill recently approved by the Senate – a bill to help balance the 2016 budget. Senate Bill 364 was on second reading until members of the GOP majority made a tactical move to block a Democratic amendment.

Senate Bill 364 should have been read for a second time on the House floor Friday, but after a move by House Majority Leader Daryl Cowles, it was held over – at first with no explanation.

The bill would pull some 52 million dollars from the state’s Rainy Day fund to help balance the current budget. Governor Tomblin’s budget officials say the state will end the fiscal year with a 384 million dollar budget gap, but West Virginia lawmakers are constitutionally required to balance the budget each fiscal year.

Democrats aimed to amend the Senate bill by taking additional dollars from the Rainy Day account to help fund state employee healthcare benefits through PEIA or the Public Employees Insurance Agency. The state is struggling to fully fund the benefits and has proposed increasing the amount employees pay for health insurance coverage.

Democrats like Delegate Isaac Sponaugle of Pendleton County jumped on the move by the majority party during the remarks portion of the floor session.

“We believe, we truly believe with over 800 million dollars in the Rainy Day Fund in the state of West Virginia, it’s raining on teachers. There’s a 120 million dollar shortfall. This past year, which we’re talking about, the 35 million dollars in benefit cuts and 33 million dollars drained out of the account. Now this does not put all of 120 million dollars back into the account, but it’s a start.” – Delegate Isaac Sponaugle, D-Pendleton County

Speaker Tim Armstead says the attempted Democratic amendment was a political maneuver, not a real solution to fixing the PEIA funding problem.

“We’re trying to work through the issue of addressing both the PEIA needs and the immediate budget needs of the state, and I don’t think they’re trying to that. I think they’re trying to play political games to try to say, and so they can run out and say, oh, you know, everyone voted against PEIA, no we’re working toward a solution on PEIA with the governor…but the Democrats have come out against their own governor’s proposal to solve the PEIA issue…they’re trying to take the money that their own governor says needs to be put in place to pay our bills now in order to solve this problem, and I don’t think that’s a solution that will work.” – House Speaker Tim Armstead, R-Kanawha County

Armstead_PEIA_Bite.mp3
House Speaker Tim Armstead, R-Kanawha County

Senate Bill 364 will be back on the House calendar Monday. Governor Tomblin’s administration is calling the bill critical to funding the state for the remainder of the fiscal year and has asked lawmakers to approve it by the end of next week.

Gov. Tomblin Nixes Spending, Signs Budget with $15 Million from Reserves

  Gov. Earl Ray Tomblin has signed next year’s state budget after reducing about $11 million set aside for a variety of grants and programs.

The Democrat’s vetoes Tuesday made it possible to take only about $15 million from state reserves in a difficult budget year. The budget passed by the Republican-led Legislature depended on about $23 million from the Rainy Day Fund.

Tomblin reduced 46 line items. They include millions of dollars in combined reductions from state higher education, the state police forensics lab, free health clinics, vehicle purchasing, the veterans cemetery and other spending.

Tomblin’s vetoes also take $2 million from capital outlay and maintenance, reducing the fund to $250,000.

He called the reductions to various grants and services difficult, but necessary.

The next budget year starts in July.

$9 Million Less Needed from Reserves for Budget

Gov. Earl Ray Tomblin says the state will need to take $9.1 million less from reserves for the upcoming budget.

In a news release Monday, the Democrat said the state has seen growth in local property taxes that will decrease the state’s share of school aid funding.

It’s the second time the governor has reduced the amount he expects the state to use from the Rainy Day Fund.

Originally, he called for $69 million from reserves.

In January, he said only $25 million would be needed after better-than-expected investment returns.

Now, the number has dropped to $15.5 million.

The Republican-led Legislature is crafting the budget.

Tomblin can make line-item vetoes after lawmakers pass the budget.

Tomblin’s budget still would cut about $72 million from various educational, health and human services.

Tomblin Proposes Covering Budget Gap with $69 Million in Reserves

Gov. Earl Ray Tomblin’s budget proposal would use almost $69 million in reserves and cut $72 million from specific areas to curb state budget woes.

The Democratic governor’s administration outlined the spending plan during a media briefing Wednesday.

The money from the state’s Rainy Day Fund and cuts would help cover an expected $195 million budget gap.

Officials said public education, higher education and the Department of Health and Human Resources would be targeted for cuts. They said further details would emerge Thursday during legislative budget presentations.

The Republican-led Legislature will craft the state budget during the 60-day session that started Wednesday.

Senate President Bill Cole and House Speaker Tim Armstead have opposed tapping the Rainy Day Fund.

Tomblin can make line-item vetoes in the budget passed by lawmakers.

Gov. Tomblin Signs Budget that Taps Reserves

West Virginia Gov. Earl Ray Tomblin has signed a budget that dips into millions of dollars in state reserves.     

Tomblin approved next year’s budget Wednesday with some vetoes and reductions. It’s not immediately clear which spending items were deleted or lessened.
 
The proposal passed by lawmakers last week would take $147.5 million from the state’s $922 million Rainy Day Fund to cover a projected shortfall. Another bill that passed could ease the reserves sweep by $21 million.
 
The budget includes $504 raises for public employees. It also accounts for $1,000 across-the-board raises for teachers and 2 percent raises for school service personnel, which were included in a separate bill.
 
House Democratic lawmakers, who face re-elections that could flip their majority control this year, opposed increasing cigarette, sales and other taxes.
 

W.Va. Lawmakers Pass Budget Relying on Reserves

West Virginia lawmakers have passed a budget that dips into millions of dollars in reserves and gives public employees raises.
 
The Senate voted 25-9 and the House of Delegates voted 77-18 Friday to pass next year’s budget. The bill would take $147 million from the state’s $922 million Rainy Day Fund to cover a projected shortfall.
 
The plan includes $1,000 across-the-board raises for teachers, 2-percent raises for school service personnel and $504 raises for public employees.
 
House lawmakers, who face re-election this year, opposed increasing the cigarette or sales taxes.

The budget adds $5 million for a Medicaid program that offers seniors in-home care. It also strips $9 million from the attorney general’s consumer protection program.
 
Gov. Earl Ray Tomblin will now consider line-by-line vetoes in the spending plan.
 

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