How Can West Virginia Prosper? A Ballengee/Boettner Battle Royale

West Virginia’s economy has a “chicken and egg” problem.

To grow more jobs here, we need better-educated, healthy employees.

But before we can afford to pay for better schools and health, we need more jobs and more businesses.

As you might imagine, liberals and conservatives have different ideas which should come first – lower taxes or higher education and health spending.

On this Front Porch podcast, hear a Battle Royale between two of West Virginia’s best policy wonks – Ted Boettner, executive director of the liberal-leaning West Virginia Center on Budget and Policy Priorities, and Garrett Ballengee, executive director of the Cardinal Institute, a right-leaning West Virginia think tank.

Ballengee and Boettner debate about how West Virginia can become a more prosperous state.

Support for The Front Porch comes from the Charleston Gazette-Mail with its two editorial pages – one liberal, one conservative – kinda like the Front Porch! Find out how to subscribe: http://www.wvgazettemail.com/

The Front Porch is the weekly podcast where we tackle the toughest issues facing Appalachia…in the same way you talk with friends on your front porch.

Subscribe to “The Front Porch” podcast on iTunes or however you listen to podcasts.

An edited version of “The Front Porch” airs Fridays at 4:50 p.m. on West Virginia Public Broadcasting’s radio network, and the full version is available above.

Share your opinions with us about these issues, and let us know what you’d like us to discuss in the future. Send a tweet to @radiofinn or @wvpublicnews, or e-mail Scott at sfinn @ wvpublic.org

Do You Have a License for That?

On this episode of “The Front Porch,” Scott, Laurie and Rick are joined by Ted Boettner of the West Virginia Center on Budget and Policy.

They discuss the effect the increasing number of professions requiring licensure or certification has on the state’s economy. Are all these licenses really necessary? If not, what’s the best way to eliminate the ones we don’t need?

Also on the podcast, a discussion of “Sit-gate” in the 2016 gubernatorial race and more.

Subscribe to “The Front Porch” podcast on iTunes or however you listen to podcasts.

An edited version of “The Front Porch” airs Fridays at 4:50 p.m. on West Virginia Public Broadcasting’s radio network, and the full version is available above.

Share your opinions with us about these issues, and let us know what you’d like us to discuss in the future. Send a tweet to @radiofinn or @wvpublicnews, or e-mail Scott at sfinn @ wvpublic.org

The Front Porch is underwritten by The Charleston Gazette Mail, providing both sides of the story on its two editorial pages. Check it out: http://www.wvgazettemail.com/

8 Ways Lawmakers Could Balance W.Va.'s Budget

Two weeks after the Legislature left Charleston without approving a budget for the 2017 fiscal year that begins July 1, the West Virginia Center on Budget and Policy is urging lawmakers to not just consider cuts when they return to complete the funding bill.

“West Virginia should take a balanced approach that includes additional revenue rather than a cuts only approach that could threaten our state’s struggling economy,” Ted Boettner said Monday.

Boettner is the Executive Director of the West Virginia Center on Budget and Policy, a left-leaning think tank based in Charleston that often studies budgetary issues in the state.

Each year, the group releases a detailed analysis of the governor’s budget proposal as well as analysis of the budget ultimately approved by lawmakers. This year, however, a budget has yet to be put to a vote so Boettner and his lead policy analyst, Sean O’Leary, penned eight recommendations for lawmakers when they return for a special budget session in the coming weeks.

  1. Apply the sales tax to digital downloads: Boettner says its unfair that West Virginia retailers should be charged for purchases of movies or music when online operators are exempt. The change could bring in an estimated $10 million per year.
  2. Apply the sales tax more widely to personal services: Barbor shops, salons, tattoo parlors, and private fitness centers among other service business are exempt from the state’s 6 percent sales tax. The WVCBP estimates closing the loopholes could bring in nearly $6 million annually.
  3. Scale back personal income tax exemptions: West Virginia provides all residents with a personal income tax exemption of $2,000. Boettner says abiding by the federal standard and phasing out the exemption for households with joint incomes of more than $150,000 and eliminating the credit for households making $200,000 would bring in nearly $10 million.
  4. Modernize Personal Income Tax Rates and Brackets: The WVCBP recommends lawmakers create an additional tax break for earners who make more than $150,000, assessing a 7.4 percent tax that would result in nearly $45 million in annual income for the state.
  5. Increase tobacco taxes: Boettner backs the Senate approved increase of $1, bringing in $139 million in revenues, but also, according to Boettner, reducing health related costs into the future as more people, especially teens, are deterred from smoking.
  6. Enact a higher severance tax on natural gas liquids and/or natural gas: Despite a Senate approved proposal to decrease the tax by 2 percent over two years, Boettner proposes doubling the tax rate on natural gas liquids from 5 to 10 percent and increase the 5 percent rate on natural gas to 6 percent, bringing in a combine $36 million in the next fiscal year.
  7. Apply the sales tax to telecommunications services: Another Tomblin proposal that went nowhere in either chamber, the WVCBP recommends implementing the 6 percent tax on both cell phone and land lines generating $60 million per year in revenue.
  8. Increase the Soda Tax: Another proposal meant to increase both revenues and health outcomes, Boettner suggests lawmakers bump the various soda taxes for $50.5 million in additional funds brought in each year.

Although the proposal wouldn’t bring in any additional revenue, Boettner and his staff are also backing the implementation of an Earned Income Tax Credit. 
Twenty-six states and the District of Columbia have such credits which returns tax dollars to low-income, working families, but the recommendation could cost the state some $47 million.

The WVCBP report also passes over what Senate Finance Chair Mike Hall has said is “the most stable” source of revenue for state governments, a food tax, a tax West Virginia lawmakers phased out in the past decade leaving a hole in the state’s budget. 

Boettner said the tax break does not necessarily target relief to low-income families because many are exempt from taxes through government assistance programs. 

Higher Education Budget Cuts Threaten University Programs

In Governor Earl Ray Tomblin’s State of the State address last week, he proposed budget cuts all across the board, and Higher Education is looking at another big reduction this year.

For years, Higher Education in West Virginia has endured budget reductions from the state legislature. Some representatives from the state’s public universities have voiced concern that lawmakers aren’t taking the cuts and their impacts on the system seriously, and with a proposed 14 million dollar cut by Governor Tomblin again this year, they’re not feeling much better.

Concord University President Kendra Boggess, says the continual cuts make it difficult to keep West Virginia schools competitive because they often result in the cutting of classes or student activities.

Lawmakers have consistently stated that higher education is important to have a successful workforce and to improve population growth, so why do these budget cuts keep happening year after year? Boggess argues it has to do with the way the state code is written.

“We are not one of those budgetary areas that can go without being cut,” Boggess explained, “I mean, there are certain things like public education, K-12; in the code it mandates a certain amount be spent on schools of that, those schools, but we’re not in that, and so we are one of the areas that can be cut when there are inadequate budget, when the budget hasn’t been met.”

As a response to the budget cuts, many universities and colleges in the state have increased tuition.  Boggess warns tuition hikes could result in losing potential students or force students to drop out.

In a report released last May, the West Virginia Center on Budget and Policy said schools have increased tuition by 32 percent since the 2007-2008 school year.

Ted Boettner, the center’s Executive Director, notes that the state has the lowest share of citizens with bachelor’s degrees or higher.  He suggests the state raise money by closing tax loopholes.

“If you go get your hair cut today, you’re not going to pay a sales tax at the barber, but if you, you know, buy a book at the bookstore, you’re going to pay sales tax,” Boettner explained, “so I think we have to make sure that we’re treating everybody fairly, and we also, when we look at tax increases that we don’t just think about taxing low and moderate income families, but that we also point to the people who have got the most out of economic growth over the last thirty years, and those are the people in the top 1 percent, top 5 percent; I think we need to ensure that they’re paying an adequate share.”

Lawmakers on the House Finance Committee are planning to look closely at legislation that could help improve the budget for higher education institutions, but many say it’s still too early to say what specifically they’ll propose.

“To balance this budget, I mean there’s revenue measures, there’s cuts, can we move other funds around, we’re going to look at anything,” said House Finance Chairman, Delegate Eric Nelson of Kanawha County, “and you know, we’ve got some very needy colleges that are really producing in certain areas of the state that have been underfunded the last three, four years; up in the Eastern Panhandle, when you talk about Blueridge Community College and Shepherd, and we can just go right across the board, so we’ll look at various options and also ask the universities how they can be creative.”

Nelson adds in a tight budget year, his committee will be looking for creative solutions to fund more than just higher education.

"100 Years of Poor Health" Kicks Off W.Va. Public Health Dialogue

West Virginia University’s School of Public Health is kicking off a series of monthly Public Health Dialogues this week. The first in the series is titled “Black Lung and Chemical Spills: 100 years of Poor Health in West Virginia.”

Award-winning journalist Chris Hamby, policy think-tank director Ted Boettner, and public health researcher Dr. Stephen Woolf will be panelists discussing recent insights into West Virginia’s health disparities and economic challenges. The talk is free and open to the public. It begins at noon on Friday, 9/5, at the WVU Health Sciences Center in Morgantown.

Panelists:

  • Chris Hamby is an investigative reporter for the website Buzzfeed. His series “Breathless and Burdened”–about Black Lung– won him the 2014 Pulitzer Prize.
  • Steven H. Woolf, M.D., M.P.H. is the director of the  Virginia Commonwealth University Center on Society and Health. His studies focus on how addressing poverty can have a larger impact on the overall health of Americans than investiments in medical technology.
  • Ted Boettner is the director of policy think tank The West Virginia Center on Budget and Policy which studies state budget and tax issues, economic development, and family economic security.

Future topics for the Public Health Dialogues hosted by WVU include “The State of Health in West Virginia” on Oct. 3; “The Social Determinants of Health” on Nov. 7; and “A Comprehensive, Community-Based Opiod Overdose Program” on Dec. 5.

Exit mobile version