Senate Tax Reform Proposal Gets State Tax Dept. Scrutiny

Details read from a State Tax and Revenue Department Fiscal note on the multifaceted Senate tax reform plan would see a total cost of around $740 million instead of the $600 million Senate projected cost.

Indications that Senate, House and Executive branch leadership were working toward a tax reform compromise got a shake up on the House floor Wednesday.

A state Tax and Revenue Department fiscal note on the Senate tax reform plan indicated a total cost of around $740 million dollars instead of the $600 million Senate projected cost. The note also mentions several problematic references, definitions and other inconsistencies in the bill wording and methodology.

House Finance Committee member, Del. Larry Rowe, D-Kanawha, was troubled by the fiscal note.  

“Basically, it would be to fund what was in Amendment 2 that was on the ballot and that the governor opposed,” Rowe said. “The bill ran in six hours. I’ve never seen that in my life, six hours from introduction to sending it to the House with this rule suspension. It came very fast. It’s also got some problems in the writing of the bill.”    

Del. Marty Gearheart, R-Mercer, said that he’s not prepared to endorse a Senate plan containing property tax relief elements similar to the failed Amendment 2, such as a 50 percent equipment and inventory property tax cut for West Virginia small businesses.

“It doesn’t mean I’m not confused and maybe a little upset that we can’t get past the fact that something that we placed on the ballot, something that I supported and voted for,” Gearheart said. “However, it didn’t pass. We’ve got two and a half weeks to provide relief to West Virginians. We’ve got two and a half weeks to see to it that they pay less tax. Beyond my confusion, let’s find a way to get it done.”

Rowe said the slow-moving tax reform issue is holding up other things lawmakers need to do, like funding $85 million for passed safe schools legislation – to change the security entries at schools statewide

Stay Denied For Hope Scholarship; Program Remains In Limbo

Families hoping to receive money from the Hope Scholarship are still in limbo after the state’s new Intermediate Court of Appeals rejected a request to move it forward.

Families hoping to receive money from the Hope Scholarship are still in limbo after the state’s new Intermediate Court of Appeals rejected a request to move the program forward.

West Virginia Attorney General Patrick Morrisey requested a stay to allow families to receive the money at the start of this school year. The scholarship program provides approximately $4,200 so families can educate their children wherever they choose.

On July 6, Kanawha Circuit Court Judge Joanna Tabit issued an injunction against the Hope Scholarship. Tabit said the legislature violated its constitutional obligation by passing a statute that limits the ability to educate West Virginia public school students.

The legislature passed the Hope Scholarship in 2021.

The attorney general said in a statement he will continue to fight for the constitutionality of the law. It is unlikely the court will hear Morrisey’s appeal before early 2023.

“It’s disappointing the Intermediate Court did not see that the lower court’s injunction will undermine the fundamental freedom of parents to choose the best education for their children,” he said. “The thousands of families who are set to receive scholarship money from the act will now be in limbo trying to figure out what’s going to happen to their children’s education.”

Justice Budget Proposal Flat For 2023

Gov. Jim Justice’s proposed budget for the 2023 fiscal year includes a small increase mostly comprised of raises for state employees, according to Michael Cook, director of the West Virginia State Budget Office. He explained the proposed budget to members of the Senate Finance Committee on Thursday.

Cook said state agencies submitted flat budgets and then made additional requests for any changes. They have been told to do that for the last three years.

The proposed 2023 fiscal year budget reflects a 1.4 percent increase over 2022 for a total expenditure of $4.645 billion.

The two changes in the budget that make up the difference are the pay raises for state employees, estimated at $114 million, and $41 million in inmate medical care.

Cook explained that budgeting for the pay raises used an average per employee. It includes $2,550 for each state employee, $2,240 for teachers and school support personnel and $1,225 for school service personnel to come up with the budget figure. The pay raise would not go into effect until the new fiscal year begins on July 1.

The proposed 2.5 percent bonus for state employees will come from a special budget appropriation that the governor’s office plans to submit soon. That money will come from the current fiscal year and will be paid before the end of the fiscal year on June 30.

Cook said the various supplemental spending appropriations completed over the last year, many using federal coronavirus recovery money, are not reflected in the budget since it only covers general revenue, lottery and excess lottery spending.

In a follow-up question, Sen. Eric Nelson, R-Kanawha, noted that the committee had not received a six year financial projection from the budget office for the last two years. Cook said he did not have that figure in front of him, but it would be included in a later presentation on revenue projections.

The Finance Committee will take the governor’s budget recommendation, but will also hear proposals from all the state agencies before passing a budget.

W.Va. Democratic Legislators Discuss Legislative Priorities

As Sen. Stephen Baldwin (D-Greenbrier) and Del. Doug Skaff (D-Kanawha) spoke about the minority party’s priorities for the 2022 Legislative session Thursday, they wove several common themes into the discussion.

Child welfare, economic development, education and better roads peppered the presentation as the legislators painted a hopeful plan for the 60-day session.

But the Democratic leaders also lamented that the legislative focus may be driven away from positive developments due to Republican agendas that have already addressed social issues in the first week of the session.

Skaff used the words “disheartening,” “sad” and “disappointing” during the press conference at the State Capitol.

An agenda item concerning abortion limits introduced in a House Health Committee meeting by Republican leaders, the same afternoon as hundreds of millions of dollars in economic development were announced by three manufacturing companies around the state, especially irked the Democratic leaders.

“We’ve heard that this isn’t going to be a divisive session and that we’re not going to see a lot of social issues,” said Baldwin. “That we’re going to get things done for West Virginians. But Day Two, in the House Health Committee, we have about the most divisive bills that you could ever imagine. So that gives me a little bit of trepidation about where we go from here.”

“Day one, what a day,” Skaff said. “We were all out here celebrating in the hallways, enjoying, saying, ‘This is going to be great for West Virginia.’ Day Two. Like Stephen says, what did we do? We didn’t waste any time. We go back out here and put some controversial issue out here that’s not going to do one thing but change the narrative in the wrong way and send the wrong message. That we have our priorities all mixed up.”

“There are things we can all agree on, bi-partisan priorities, that we need to focus on first,” Skaff added. “We need to get things done.”

“I’ve had conversations with Senate President (Craig) Blair and he says he’s open to any good idea,” said Baldwin. “It doesn’t matter if it’s a Democratic idea or a Republican idea. I’m hopeful, but I still have a little bit of trepidation.”

Baldwin said current legislative agenda items should address two primary concerns: “How can West Virginia bring displaced state natives back home?” And, “How can West Virginia create opportunities and incentives to keep its young people from leaving the state?”

“Population decline is at the root of most problems we have in our state,” Baldwin stated. “What are we going to do about it?”

The Democrats listed affordable and reliable broadband, quality education from infancy to high education, jobs, pay raises for public employees and retirees, health care, non-discriminatory laws, supporting local farms, eliminating utility rate increases, supporting public education, fair tax policies for working families, child care and better roads as items the minority party is eager to address.

“We need to put West Virginians first in everything we do,” Skaff added.

Revitalizing former coal communities using available federal dollars makes sense, Skaff said.

“We need to create opportunities and focus on those hurting communities,” he added.

Skaff also addressed the crisis in workforce shortages, especially in the healthcare field.

“Are we helping people get back to work?” Skaff asked. “We are in crisis mode with a lack of nurses.”

Skaff said that creativity may be the answer to workforce staffing issues.

“We need to explore flexible workplaces without burdening small businesses,” he stated.

Post-Crossover Day, Here’s What’s Still In Play In The West Virginia Legislature

This story was originally published by Mountain State Spotlight. For more stories from Mountain State Spotlight, visit www.mountainstatespotlight.org.

With less than two weeks until the end of the legislative session, West Virginia lawmakers have spent time debating legislation relating to rights, including bills focused on speech, guns, abortion, voting, gender and racial equity.

Bills, which must pass both the West Virginia House of Delegates and state Senate to become law, had to pass one legislative body by Wednesday for a chance at becoming law this year. Wednesday, sometimes referred to as “Crossover Day,” was the 50th day of the 60-day session.

Efforts to support private companies’ forays into childhood education and protect companies from lawsuits related to COVID-19 were Senate priorities at the beginning of session, and these bills moved quickly and have already been signed into law. As of Crossover Day, the state Senate had turned to passing legislation moving up deadlines for early and absentee voting, and a measure to put a constitutional amendment on the ballot, giving voters an option to prohibit cities, towns and counties in West Virginia from enacting gun ordinances more restrictive than state law. Both of those measures are pending in the House.

The House of Delegates passed bills to give the Secretary of State oversight over social media political messaging and to require health professionals to tell patients seeking medical abortions that the procedure could be stopped after taking the first of two abortion pills. Obstetrician/gynecologists have warned that House Bill 2982, which is based on the idea that taking progesterone can “reverse” an abortion, potentially subjects patients to “unmonitored experimentation.”

Delegates also passed bills to protect Confederate and other monuments, such as the Stonewall Jackson statue at the West Virginia Capitol, from removal, and to prohibit transgender middle-and-high school kids from playing on single-sex sports teams consistent with kids’ gender identities. Pediatricians and psychologists have warned the bill creates more reasons for trans kids to face mental health challenges.

Also this week, the state Senate passed a bill that would expand the list of qualifying conditions making a patient eligible for medical cannabis, and the House of Delegates passed a bill that would extend Medicaid coverage for new mothers to one year postpartum.

Meanwhile, bills that would require counties to survey how many kids are in need of food during summer break or during emergencies when kids are out of school and to set a cap of $25 on insulin co-pays and diabetes pharmaceutical supplies and equipment were never considered on committee agendas.

Neither was either chamber’s version of the Crown Act. Advocates for racial equity had pushed for the passage of Senate Bill 108 or House Bill 2698; both of which would have clarified that discrimination based on race, which is already prohibited in West Virginia employment, housing and public accommodation law, includes discrimination based on hairstyles associated with race, such as locks, braids or natural Black hair.

News outlets throughout West Virginia reported on the problem after a high school basketball player in Beckley was told his dreadlocks weren’t permitted in 2019, but advocates have since noted that discrimination based on hairstyle is an ongoing problem for Black West Virginians.

Here’s the status of some other key bills, as of March 31, 2021:

Almost law

  • House Bill 2382 (lead sponsor: Delegate Geoff Foster, R-Putnam) pushes back recommended water quality updates at the request of industry. In 2015, the federal Environmental Protection Agency recommended states update standards for 94 pollutants. West Virginia’s bill updates standards, which dictate how much pollution can be discharged into waterways, for 24 pollutants instead. This bill was originally HB 2389, but was then combined with an air quality bill. The measure has passed both the House of Delegates and state Senate and is waiting for agreement between the two before it goes to the governor.
  • Senate Bill 275 (lead sponsor: Sen. Craig Blair, R-Berkeley), introduced on behalf of the governor, establishes an intermediate court of appeals in West Virginia. The bill has passed both the state Senate and House of Delegates; both bodies just need to agree on a title change. An intermediate court would hear appeals before they went to the West Virginia Supreme Court, which advocates say would establish a more “fair and predictable legal climate” in the state. In a statement Tuesday, the West Virginia Association for Justice said lawmakers are “helping global corporations increase their profits at the expense of West Virginia taxpayers.” Opponents of the bill have said, in years past, that corporations can spare the cost of more time in appeals courts and thus, more lengthy legal battles with individuals.

Halfway there

  • House Bill 2017 ( lead sponsor: Delegate Brandon Steele, R-Raleigh) is a complete rewrite of the state criminal code. It passed the House of Delegates Wednesday. The bill, which is more than 400 pages long, increases sentences for more than 200 crimes, according to West Virginia Public Broadcasting. The state chapter of the American Civil Liberties Union opposes increasing sentences. The West Virginia Prosecuting Attorneys Association has also raised concerns that the legislation would restrict their ability to promise predictability to victims of crime, and both the state chapter of Americans for Prosperity and the West Virginia for Center for Budget and Policy said it could lead to an increase in the already-overcrowded jails. Steele said the bill would “modernize our code, as many of our sister states around the country have done over the past 20 years.”
  • House Bill 3300 (sponsored by Delegate Eric Householder, R-Berkeley) passed the House of Delegates Monday. The Charleston Gazette-Mail reports the bill would shift about $204 million a year in tax revenue and lottery profits into an Income Tax Reduction Fund, although questions remained about what programs and services would be cut to make up the cost. Gov. Jim Justice and Senate Republicans said eliminating the personal income tax was a priority at the start of the legislation session, but the bill containing Justice’s proposal never advanced. Now, the state Senate is considering its own version of a tax plan, after MetroNews reported that the Senate Finance Committee amended it into the House bill. That bill would cut the personal income tax initially by $1.09 billion, and would offset that cut with a variety of tax increases estimated at $890 million. According to MetroNews, Justice is displeased with the Senate’s plan because, among other changes to his plan, it shifts the burden to more low-income taxpayers by re-enacting the food tax and raising the sales tax from 6% to 8.5%, slightly higher than Justice had proposed.
  • House Bill 2918 (lead sponsor: Delegate David Kelly, R-Tyler) makes permanent the West Virginia Supreme Court’s family drug courts pilot program. Previous legislation made way for the Supreme Court to begin those courts in just four circuits; that limit is removed in the bill. Family drug courts are “specialized court dockets within the existing structure of West Virginia’s court system offering judicial monitoring of intensive treatment and strict supervision of individuals with substance use disorder involved in a child abuse and neglect case,” the law states.
  • House Bill 2598 (lead sponsor: Delegate John Kelly, R-Wood) exempts oil and gas operator above-ground tanks, which can contain carcinogens, from regulation meant to prevent chemical spills. The bill passed the House of Delegates and is waiting for review in the state Senate. The Above-Ground Storage Tank Act became law after the 2014 water crisis and mandated stricter regulations of chemical tanks; the oil and gas industry has consistently asked for exemptions, and have already received exemptions in previous years; this year’s bill exempts tanks that are the closest to drinking water intakes.
  • Senate Bill 334 (lead sponsor: Sen. Eric Tarr, R-Putnam) seeks to limit the distribution of clean needles to West Virginians who inject drugs by placing a number of restrictions on syringe access programs and their participants. Experts in public health and harm reduction say those restrictions would make programs less effective, if they are even able to operate at all. The bill has passed the Senate, and is waiting for review in the House of Delegates Health and Human Resources Committee, where it is on Thursday’s agenda.
  • Senate Bill 387 (lead sponsor: Sen. Mike Maroney, R-Marshall) would continue a pilot project overseen by the DHHR, which has been in effect since 2017. The program requires Temporary Assistance for Needy Families applicants to complete a questionnaire and flags participants for drug screenings. Supporters claim the goal is to connect those struggling with substance abuse disorder with treatment, but from October 2019 to September 2020, DHHR reported that out of 2,067 completed drug use screening questionnaires, only seven applicants’ drug tests came back positive, indicating that people with substance use disorder who needed help didn’t take the test. Most TANF recipients are children. The bill has passed the state Senate and is on the House health committee’s agenda on Thursday.
  • House Bill 2264 (lead sponsor: Delegate Jeffrey Pack, R-Raleigh), would exempt hospitals from certificate of need requirements. Starting in the early 1960s, states used CON laws to try to curb health care spending by making medical providers prove that a need existed before they could open new facilities or expand services to a community. The bill has passed the House.
  • House Bill 2363 (lead sponsor: Delegate Geoff Foster, R-Putnam) requires family court judges to assume that custody arrangements that allocate 50% of a child’s time with each parent are best, unless parents can demonstrate in court that other factors should outweigh that requirement. Advocates for victims of violence have noted that abuse of children and adults is often difficult to prove. That bill has passed the House of Delegates and awaits consideration in the Senate.

New laws

  • House Bill 2012 (lead sponsor: Delegate Doug Smith, R-Mercer), makes way for 10 charter schools and virtual charter schools in West Virginia, and was signed into law by Justice earlier this month.
  • House Bill 2013 (lead sponsor: Delegate Joe Ellington, R-Mercer) gives parents $4,600 — the amount the state spends on average per student — for educational expenses, such as private school or home-school programming. The student would have to leave public school to receive the money. Beginning in 2024, parents who already pay for private school would be eligible for the money, resulting in an estimated cost to the state of about $100 million per year. Justice signed this bill into law Saturday.
  • Senate Bill 11 (lead sponsor: Sen. Patricia Rucker, R-Jefferson), puts in state code that teacher strikes are unlawful and prohibits school districts from closing schools for strikes. The bill became law without Justice’s signature earlier this month.
  • Senate Bill 272 (lead sponsor: Sen. Craig Blair, R-Berkeley) seeks to give employers more ability to classify workers as independent contractors. Advocates for workers have warned this could result in workers losing benefits, like being able to file for unemployment if needed, and access to the state workers compensation program. Supporters of the bill have said workers want more freedom. Justice signed this bill into law earlier this month.
  • Senate Bill 277 (lead sponsor: Sen. Craig Blair, R-Berkeley) has passed both the House and Senate. The bill prevents West Virginians from suing employers, health care providers and others over COVID-19 related problems, except in limited circumstances. Supporters say businesses need protection from lawsuits. Justice signed this bill into law earlier this month.

Reach reporter Erin Beck at erinbeck@mountainstatespotlight.org

Another Year, Another Fairness Act: Is 2021 The Year W.Va. Adopts A Law For Gay, Transgender Rights?

When Gov. Jim Justice said in a debate last year he would sign a nondiscrimination act for gay and transgender West Virginians if it reaches his desk, some Republican leaders called the moment a “turning point” for the state’s political landscape and LGBTQ community.

This law, most recently branded the “Fairness Act,” would bar discrimination against people, regardless of their sexual orientation and gender identity, in employment, housing and public places.

Advocates say the legislation has widespread, bipartisan support this year. Yet, despite being introduced almost every session for the last two decades, the bill rarely ends up reaching the House or Senate floor for a final vote.

“We need to make sure that people know that we are a forward-thinking state,” said Andrew Schneider, executive director of the advocacy group Fairness West Virginia. “We’re generous people, we’re kind and we love each other. That’s the message we send by passing the Fairness Act.”

A Look At The Politics

This year, Del. Joshua Higginbotham, R-Putnam, announced on Twitter that he will be a lead sponsor for the Fairness Act in the House of Delegates. Last year, Sen. Majority Leader Tom Takubo was the lead sponsor for a version of the bill in his chamber.

Neither responded to requests for comment, but Schneider said both lawmakers’ support demonstrates a more widespread backing by the rest of the Republican supermajority.

However, even with five versions of a Fairness Act in the House of Delegates last year and Takubo’s name on a Senate version, none of the bills managed to pass their respective committees.

House Republicans voted down motions from House Democrats, who toward the end of the 60-day session asked their colleagues to skip committee consideration and vote on one of the Fairness bills as a chamber.

“The reason why it didn’t come up for a vote is the leadership last year decided not to bring it up for a vote,” said Schneider. “Everyone now knows someone who is a member of the LGBTQ community. It can’t be ignored or brushed under the carpet anymore.”

Speaker of the House Roger Hanshaw and Senate President Craig Blair both did not respond to requests for comment.

Fairness Ordinances In Big And Small Cities Alike

There are 14 local governments in West Virginia which, while waiting on a statewide law, have passed their own nondiscrimination ordinances. The largest of these municipalities include Charleston and Huntington, the latter of which passed an ordinance in 2013.

Since then, Huntington leaders have developed an advisory LGBTQ committee, a Human Rights Commission and a city-wide “Open to All” campaign.

Some Republican state lawmakers — including Sen. Eric Tarr, R-Putnam, and former Del. Jim Butler, R-Mason — argued last year that the Fairness Act would create more opportunities for people to file reckless legal complaints against small businesses.

“If you’re doing the right thing, you don’t have to worry,” said Huntington Mayor Steve Williams, who helped pass Huntington’s nondiscrimination ordinance during his first term in office.

Rather, Williams said, Huntington’s ordinance has attracted new residents and businesses to the city, drawn to a message of inclusion.

“What I have found is that individuals are moving to Huntington because they’re seeing that we are such an inclusive and diverse community,” Williams said. “I think it’s something that can benefit the entire state.”

But most of West Virginia isn’t populous cities like Huntington, it’s small towns.

Keyser, Mineral County, was the most recent municipality to pass a nondiscrimination ordinance in January. Council members voted on the ordinance with little fanfare.

“Keyser is the epitome of a small town,” said Curtis Westfall, a WVU student who grew up in Keyser, home to about 5,000 people. “We all know each other, sometimes for the best, sometimes for the worst. But in general, we all have a pretty good community spirit.”

Westfall asked his city leaders about an ordinance late last year, and the effort took little convincing.

“I’m a 22-year-old gay man, and obviously I’ve encountered bits of homophobia throughout my life,” Westfall said. “But, I know Keyser to be a loving and accepting place. I wanted the law to represent that.”

Support Not Unanimous

But it’s hard to ignore the places where discrimination still occurs, says Schneider.

Most recently in November, a Kanawha County judge agreed with a lawsuit from Kim Williams, who filed a grievance with the local school board after applying for a high school principal’s position and being passed over for a candidate with less experience.

The Charleston Gazette-Mail reported that a Public Employees Grievance Board judge agreed the case was likely the result of discrimination. A Kanawha County School Board member allegedly told others he wouldn’t hire Williams based on her sexual orientation.

“The vast majority of LGBTQ people are still without protections and are still vulnerable,” said Schneider. “And, many leave the state because they don’t want to have to live in constant fear of whether their boss is going to fire them or whether their landlord is going to kick them out.”

Even in Huntington, which Williams said has made huge strides in the last decade, support for LGBTQ rights is not unanimous.

Del. John Mandt Jr., R-Cabell, posted a statement opposing the bill Thursday.

Mandt resigned in 2020 after homophobic and Islamaphobic remarks he made in a private Facebook chat went viral. Although he resigned, his name was still on the ballot and his district re-elected him to office.

Mandt wrote Thursday that the bill was a “wrongful appropriation of the civil rights movement,” and it forces religious people to “choose between faith or unjust government persecution.”

This is despite the fact that last year, more than 100 faith leaders from throughout the state signed a letter to the Legislature, advocating for the Fairness Act. Members include the Rev. Ron English, president of the Charleston NAACP and a civil rights leader who spoke at Rev. Martin Luther King Jr.’s funeral.

Emily Allen is a Report for America corps member.

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