CHARLESTON, W.Va. — Gov. Earl Ray Tomblin says the state will borrow about $44 million less than projected from the Rainy Day Fund because of better-than-expected returns on investments.
Tomblin said that means his budget can be balanced with $25 million from the state savings account, instead of the original $68 million proposed. The fund currently has a balance of $860 million.
The governor, flanked by Republican and Democrat legislative leaders, made the announcement Tuesday.
Administration officials said they learned of the updated actuarial report a few days ago, after they prepared the 2016 fiscal year budget and the governor had delivered his State of the State address.
Tomblin said steps the state took to solidify pension funds, while also saving money, have led to the improved returns on Wall Street.
“Because of our unwavering commitment to pay down our unfunded liabilities and positive return rates, returns from our continued investments were better than anticipated,” he said.
Despite the news, Republican leaders continued objections to Tomblin’s plan to borrow from Rainy Day for the second consecutive year. They’re scouring for other ways to find the money to balance next year’s budget.
“We still have plenty of work to do,” said Senate President Bill Cole (R-Mercer), who is joining House Speaker Tim Armstead (R-Kanawha) and Tomblin in seeking a bipartisan budget plan.
Not that many years ago, state government’s finances were a mess—retirement programs were badly underfunded and the state had no savings. However, today rating agencies give West Virginia high marks for paying down its long-term debts and building up a Rainy Day fund equal to approximately 20 percent of the state budget.
Said Tomblin: “The fiscally responsible policies we’ve enacted together continue to pay dividends and give us more flexibility to find ways to move our state forward.”