Governor Asks for Tax Hikes, Lawmakers Seek Different Approach
The first session of the 83rd Legislature will bring many challenges, perhaps the most difficult task facing West Virginia will be how to handle the state budget.
The Republican Leadership will likely see a struggle on the road ahead when figuring out necessary cuts and deciding whether or not to raise taxes.
The state budget has hovered around $13 billion in recent years. In Fiscal Year 2017, the funding to the General Revenue totals $4.2 billion, Lottery funds are $420 million, the state road fund $1.3 billion, special revenue $2 billion, and federal at $4.8 billion.
Democratic Governor Jim Justice is touting a “Save Our State” budget proposal including increasing taxes and borrowing $123 million from the state’s Rainy Day Fund. He’s also looking at increasing the sales tax and increasing the gasoline tax 10 cents to the gallon.
“If we don’t fully implement this plan, or something awfully similar to this, our state’s going to die,” Justice says in a video released about his plan.”
“We need to be all in. It needs to be where the people pay a little bit, the businesses pay a little bit, we’re all going to run across the finish line together.”
Justice says his plan will create 48,000 jobs.
Many legislators are not interested in passing any tax increases. The two leaders in the House and Senate are working together to get everyone on the same page, as well as trying to work with the new Governor.
With a Governor and Republican Legislature disagreeing, it will likely be a process to come to an agreement on how to adjust the state’s spending.
In the Senate, Senate President Mitch Carmichael, R-Jackson, said it’s disappointing the Governor is looking to raise taxes on hardworking West Virginians.
“We believe that is the wrong path,” he said. “We’re going to try our level best to hold the line on last year’s budget and work with the Governor and our legislative colleagues to bring a budget forth that spends no more than we spent last year.”
House Speaker Tim Armstead, R-Kanawha, said it is the House’s intention to review the budget rather meticulously.
“We intend to review every line item in this budget and find whatever savings we can make. We will not be afraid to challenge the status quo and cut the bureaucracy in Charleston.”
For more information, follow the House Budget Bill (HB 2018) and the Senate Budget Bill (SB 199)
