Thursday, May 9, 2024
Thursday, May 9, 2024

Saving the Best For Last: Lawmakers Set to Balance the Budget

I’ll never forget the first day of my state government course in college. The professor asked, “Do we really need state government?” A silence blanketed the room. Students pondered the question with great intensity. The professor proceeded to ask if we wanted safe roads to travel, traffic lights to tell us when to stop and go, police to enforce our laws and emergency services to save us from danger.

Well, of course we want those services. In fact, we need them. And for our state to function, the Legislature has to pass the Budget Bill. During the 60-Day Regular Session, the Budget must be balanced and approved according to the State’s Constitution.

Before each fiscal year, which runs from July 1 to June 30 of the following calendar year, the Department of Administration receives budget requests from each state agency no later than Sept. 1. Also, on or before Sept. 1, each agency must submit two copies of its request to the Legislative Auditor who delivers it to the Finance Committees of each body.

“We’re coming along fine. The staff is working daily and hourly to track pending legislation to determine its fiscal impact and monitoring the different agencies to check their status. What happens here (on the floor) determines the budget’s final version. We’re in better shape than in the past. We will not have to have a reduction as last year to balance the budget.”
– Sen. Walt Helmick (D – Pocahontas), Senate Finance Committee Chairman

The Secretary of Administration conducts hearings with each agency regarding their requests. The Department of Administration compiles the agencies’ requests and submits a report to the Governor who then drafts a budget. A prepared budget is then submitted by the Governor to the House and Senate on the second Wednesday of each January, except under circumstances following a gubernatorial election whereby it is submitted by the second Wednesday in February. This extension allows an incoming Governor time to prepare a budget.

“There will definitely be an extended session this year. We cannot finalize the budget bill until all other bills have passed. I hope we can finalize the House version by Thursday morning (April 7) and then suspend rules on Friday (April 8) to get it passed to the Senate. We’re not lacking in any areas; it’s just a matter of putting things together to get to the bottom line. It’s the same old issue of where the money goes.”
– Del. Harold Michael (D – Hardy), House Finance Committee Chairman

Each body focuses on its own version of the budget during the Legislature’s 60 Day Regular Session. The budget must contain a complete plan of estimated expenditures and revenues for the current fiscal year and the coming fiscal year, as well as an estimate of any surplus or deficit of revenue. The budget also must include an itemized estimate of funds for the Legislature, Executive and Judicial branches.

The House and Senate Finance Committees conduct hearings with agency representatives to determine how to balance the budget. The West Virginia Constitution prohibits the state from running on a deficit. The founding fathers of West Virginia knew that a state could not afford to pay out more than it collects.

If an increase in funding for one program decreases another’s, lawmakers want to know where the money is spent so they can weigh the costs against the benefits. There are essential items of the budget such as education funds for schools and universities, healthcare programs, mental health programs and public safety. The state also must repay debts it has incurred. Funds left over are divided among many programs, but which programs and how much they receive is a topic for debate.

The Finance Committees are divided into subcommittees, which then take a closer look at the various agencies’ requests.

Typically one house will pass its amended version first. The other house will usually amend that version by striking and inserting its own version. A conference committee, comprised of representatives from each house, will then be assigned to iron out differences in the bill.

Once passed, the Governor can approve or veto the bill or reduce items or parts of items within the bill using a line item veto. No other measure except the Budget Bill can receive a line item veto. If approved by the Governor it becomes law.

Through collaboration, the Legislative and Executive branch keep state government “chugging along.” It is an elaborate process that allows West Virginia to look at where it has been, where it is presently and where it wants to be in the future.

On April 5, the Governor issued a proclamation to extend the session for six days so that lawmakers can take up the budget.

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