CHARLESTON, W.Va. — Elected leaders who are trying to fill a half-billion dollar gap in the state budget have a couple of basic choices: raise taxes or cut spending.
There are some variations in the mix, like potentially refinancing the state’s pension debt or plugging exemptions in the state sales tax — but the two basic budget fixes remain.
And for every cut or every tax, there’s a constituent group ready to rally for the opposite view.
That was the case Tuesday at the Capitol, where those gathered for “Kids and Families Day” showed up to support health and education programs that could wind up under budgetary scrutiny.
It will be the similar Wednesday during “Arts Day at the State Capitol,” when West Virginia artists in attendance aren’t likely to be wild about cuts to the state film office or to fairs and festivals — parts of the trimming already proposed by Gov. Jim Justice.
Then on Friday, “Transportation Day,” those visiting the Capitol are almost certainly going to speak out in favor of Justice’s plans for more spending on the state’s highways, which he would accomplish through a combination of increased revenue streams such as raising the gasoline tax and DMV fees and leveraging those through bonding.
Practically every day of the 60-day session, a group will be on hand to advocate on behalf of a program or agency they hold dear.
HOPPY KERCHEVAL: Budget cutting brings out constituency groups
Leigh Ann Day of the Service Employees International Union 1199, which covers West Virginia, Kentucky and Ohio, was among the hundreds attending “Kids and Families Day.”
She said the group’s strategy is pretty simple: “Part is being seen, the rest is being heard.”
The Kids and Families event is annual, but this year it provides an opportune moment to speak out before potential cuts are considered.
“Our goals are to stand with our children, our future as far as making sure there are no cuts to the social programs in our state with our outstanding budget as it lies,” Day said as her group gathered in the state Culture Center.
“We do not want any Medicaid reimbursement rates to be decreased during this session even though it is a hard economic time.”
Legislative leaders have said that to balance the budget they might have to look at areas where most of the state’s spending lies: health and human resources and education. Those areas have been untouched during budget struggles of other recent years, but it would be hard to cut $500 million out of a $4.5 million general fund without going into them.
Jim McKay, the director of Prevent Child Abuse West Virginia, part of the groups at “Kids and Families Day,” is aware of the budget situation but hoped to tell legislators about the importance of programs meant to help children.
“We know that the state is facing unprecedented budget shortfalls. In many ways, those are somewhat self-inflicted in terms of our approach to tax cuts several years ago. But we know that everyone is working together to try to preserve investments for our children,” McKay said.
“We know that despite the tough budget battles that are underway, we can’t afford to let our children and families pay the price. So we’re working with lawmakers to try to preserve investments in early childhood, support for programs like family resource networks, home visiting programs, child abuse prevention and domestic violence services that help our most vulnerable population.”
McKay said groups like his will be keeping an eye on budget items relating to health and social services.
“We know that as families are struggling they need those services more than ever,” he said while walking into the Capitol on Tuesday.
The Justice administration has proposed an estimated $26 million in cuts for the coming fiscal year.
Justice’s proposal includes cutting the West Virginia Network by $1.7 million, the College Readiness Program by $155,000, the Educational Broadcasting Authority by $4.6 million, the Division of Culture and History by $4.3 million and the West Virginia Film Office by $341,000.
Each of those are areas where constituency groups are likely to come to the defense of the program.
On Tuesday afternoon, Justice put out a statement saying funding to fairs and festivals could be spared if legislators will agree to provide more than $100 million in funding to his proposed Save Our State plan for infrastructure and economic development.
“We’ve already cut all the low hanging waste in government, and I’ve warned West Virginians that any more budget cuts we make will be extremely painful, especially cuts to our fairs and festivals,” Justice stated.
“I hate to hurt community events, but the budget crisis demands difficult choices. Believe me, the cuts I’ve laid out were not easy decisions. My plan is to support fairs and festivals through the Division of Tourism.”
NEWS: Governor Justice says cuts to fairs and festivals can be avoided if @wvlegislature takes action. https://t.co/Ycwj9Ikhm2
— Governor Jim Justice (@WVGovernor) February 14, 2017
Justice says broader cuts would unnecessarily hinder the state’s ability to support its people and economic opportunities.
“If you go that way, we’re totally dead,” Justice said last week in a conversation with reporters. “But what people have got to understand is that’s the magnitude of where you’ve got to go one way or another. For people to say Justice wants to raise your taxes, that’s hogwash. Justice wants to fix the problem. And Justice wants to send you on the pathway of prosperity, the pathway of hope.”
Justice acted as his own home county’s constituent Tuesday by publicly taking position against a Senate bill meant to privatize the West Virginia School of Osteopathic Medicine in Lewisburg. “It makes absolutely no sense to divest yourself of such a strong asset,” Justice stated in a news release from his office Tuesday.
While other groups advocate to maintain spending for programs or to increase the state’s financial commitment to others, Jason Huffman and Americans for Prosperity, West Virginia, lobby to keep taxes low and government small.
“The thought process of ‘We must increase taxes to save our economic structure’ is a bit backwards in thinking because you look at states that are successful, that are growing their economies, that are growing their population base — they have a tax structure that is set up to incentivize people to come here, bring their business here, bring their families here,” Huffman said.
Huffman talked about his own lobbying efforts near the Rotunda while participants in “Kids and Families Day” streamed around him. Those people were trying to get their message across, just as he was.
“I don’t think anyone is under the impression that limiting government is going to be an easy task,” he said. “There is a constituency group for every program out there. We have to really take a serious look at what we want our state to fund and what we can afford to fund.
“From that standpoint, we have to consider the economic reality we have here. Can people afford to pay $450 million in new taxes? I would say probably not. Regardless of the government structure that exists, we want to bring people here and not grow government.”
Senator Ed Gaunch, R-Kanawha, steered through a crowd of visiting citizens and pockets of lobbyists on his way to a meeting. Gaunch said he is happy to talk with constituents, but said he has to look at the overall picture when he’s considering issues like the state budget.
“For me, yes, they definitely have an impact,” said Gaunch, who is a member of the Senate Finance Committee. “At the end of the day, you have to look at the situation as a whole and make priority decisions on what’s government’s responsibility and what can you afford.”