On the first day of the 2009 Regular Session, lawmakers were presented with a proposed budget for Fiscal Year 2010, which included $4.3 billion in general, and lottery revenue. Since then, however, in light of the current economy and forecast budget shortfalls in the near future, the Legislature has been requested to trim the budget by over 4 percent from the original proposal.
According to the State Department of Revenue, projected revenues for next year will likely fall short of what had been forecast when session began. The less than expected projections in general and lottery revenue will apparently leave the original budget bill short by around $200 million.
This week, the Legislature adopted Senate Concurrent Resolution 68, which allows the Legislature to extend the session until June 6th solely for consideration of the budget, supplemental appropriations or to take up any veto messages. This will also allow members to address potential legislation relating to implementation of or expenditures associated to the American Recovery and Reinvestment Act of 2009, otherwise known as the federal economic stimulus program.
Senate Finance Chairman Walt Helmick believes the additional time will be advantageous. “I’m happy the budget meetings have been delayed because we don’t know where West Virginia’s revenue stream is right now. The budget is $200 million to $250 million below the governor’s original projection. This will give the Legislature more time to look over the budget projections. It allows for more fiscal responsibility.”
Meanwhile, House Finance Chair Harry Keith White thinks it is the right decision in light of the economy. “We in the House believe it’s a prudent decision to wait until after we see the April tax revenues to finish work on the proposed Budget Bill. We have been asked to cut over 4 percent from the original proposed budget and members and staff of the Finance Committee will use the extra time to collect data and accurate numbers that reflect the current economic situation.”
It has not yet been announced as to when the Legislature will reconvene following the last day, April 11th, to begin work on the budget.
