As the Legislature convenes for the 2010 Regular Session, no issue looms larger than the status and future of the state budget. Lawmakers are faced with the task of approving and balancing the budget, while maintaining fiscal responsibility and the services West Virginians expect.
“Obviously it’s a very difficult year. Cash flow is relatively good but we have a major concern with long-term debt,” said Senate Finance Chairman Walt Helmick. “This year we will be okay without cutting services to West Virginians.”
To ensure a balanced budget for Fiscal Year 2010, the Governor has requested mid-year expenditure reductions of 3.4 percent, or $120 million. This percentage is deducted from the already reduced mid-year cut of $197 million for this fiscal year.
The proposed budget for FY 2011, as delivered by the Executive Branch, is approximately $4.16 billion and includes the General Revenue, Regular Lottery and Excess Lottery Funds. Included in the total is $68 million in cash surplus, which will be utilized to help fill some gaps. However, projections predict a revenue shortfall of around $120 million this year and even greater disparities in the coming years.
Next year’s budget, with all of the proposed reductions, will be balanced with a combination of cuts and an influx of one-time federal stimulus package money of $119 million, which will be used to “backfill” some of the cuts. The federal funds will go primarily to public and higher education. All states are required to spend most of their stimulus share by 2011, meaning West Virginia will have to look for other funding sources if the state’s revenues continue to feel the effects of the economic downturn. Cuts of five percent have been made to the budgets of the Legislature, Constitutional Offices, and executive agencies.
While West Virginia lawmakers are bracing for across-the-board cuts, surrounding states have been forced to take tougher steps. Three of West Virginia’s neighbors, Pennsylvania, Ohio and Virginia, are among 13 states increasing fees. They and bordering Kentucky are among 26 states that, as a result of financial problems, have laid off, furloughed or offered early retirement to state employees.
“West Virginia has been fortunate thus far to weather the financial storm much better than our surrounding neighbors,” said House Finance Chairman Harry Keith White. “We must exercise patience and continue to act in a fiscally responsible manner to ensure we can keep providing the services our citizens expect.”
The Senate and House of Delegates Finance Committees have began holding budget hearings and are diligently poring through budget requests from the various state agencies. Work will continue throughout the session and will culminate during an expected extended Budget Session.
› 2010 Senate Budget Hearing Schedule
› 2010 House Budget Hearing Schedule
The House also recognized the General Federation Women’s Club of Beckley for 100 years of involvement in the community. (pictured) 
Majority Leader Sen. Chafin (D – Mingo) addressed the chamber and asked Senators to encourage their constituents to testify for Senate hearings regarding the power outages that affected 220,000 people around Christmas. Sen. Chafin said West Virginia is paying approximately $75 million to repair damaged power lines and he would like to develop the record in order to ensure it is money well spent.
In honor of Dr. Martin Luther King, Jr.’s birthday, a ceremony was conducted on the North side of the Capitol building. The lawmakers in attendance were accompanied by members of the West Virginia Supreme Court and the Governor, as well as the members of West Virginia’s Martin Luther King, Jr. Holiday Commission to mark this National Day of Service.
Speaker of the House, Richard Thompson, said, “We should be honoring not just Dr. Martin Luther King, Jr., but also the leaders, activists, educators and legislators who strive to follow in Dr. King’s footsteps.”
He also called for everyone to “re-dedicate themselves to Martin Luther King, Jr.’s purpose.” He said that Dr. King wanted freedom to ring throughout the country which is why they honor him through the annual ringing of the bell.
The Senate Chamber was buzzing with activity this morning as the Senate reconvened for the sixth day. 
Five bills, including 
The Senate reconvened this morning and introduced six bills.
The Senate reconvened this afternoon and introduced ten bills and acknowledged today as Mineral County Day.