CHARLESTON, W.Va. — As the minority leader in the House of Delegates, Tim Miley has had a front-row seat to the budget talks taking place in the state Legislature. And Miley says he’s rarely seen what’s been going on between the Republican leadership in the House and Senate.
“I’ll be frank. That’s the most unusual dynamic I’ve observed about this whole series of events,” said Miley, D-Harrison.
“It’s just astounding to me that the Senate Republicans are all supportive of something that every Republican in the House seems to be so adamantly opposed to. I don’t understand it. I’ve never seen that before. I don’t understand why there’s that disparity.”
Miley was among those watching late Friday afternoon as the state Senate voted 32-1 to pass a revenue bill that was also supported by Gov. Jim Justice.
Just minutes later, the House of Delegates voted 59-34 to kill the same bill.
Both houses voted to recess until May 15 to give legislative leaders more time to negotiate a budget deal with the Justice administration.
The Republican majority in the state Senate has expressed enthusiasm over an aspect of the revenue bill that would cut personal income taxes for state residents with a goal of eliminating the income tax over time.
In the House, the Republican majority has expressed serious doubt over the taxes that would have to be raised to accomplish the income tax reduction. That includes a 1-percent increase in the state sales tax and an increase in the corporate net income tax.
What’s happened in recent weeks was a big change from the show of unity by Republican lawmakers a few weeks into the regular 60-day session, when they gathered to vow that their version of a budget would make the state live within its means, topped off at the $4.055 billion of expected revenue.
The budget framework they presented, though, had about $150 million in cuts or revenue still to be determined — and that’s where the differences have been apparent ever since.
Both the House and Senate considered tax reform packages during the regular session, with significant differences. The Senate’s focused on lowering the personal income tax but raised the sales tax. The House’s lowered the sales tax, broadened what is taxed and left the income tax alone.
The revenue package that was considered during two days of special session was built to balance the state budget by raising the sales tax and other taxes six months prior to the personal income tax reduction, building a fiscal cushion.
Republicans in the House actually voted down two versions of the bill — one that was introduced in the House and then the one that had passed out of the Senate. After the first rejection, Republican delegates lined up behind Armstead in a demonstration of unity as he made a statement about what had happened.
“I know a lot of criticism of the House Republicans has been leveled toward the governor, but when the Senate president and speaker aren’t on the same page that’s where the problem needs to be resolved first,” Miley said in an interview Friday evening. “They both have the majorities of the two bodies; they’re clearly on different pages.
“Until they get over their impasse, I’m not sure what value negotiating directly between the governor and speaker will really amount to if the Senate president and the Republican majority is not on board.”
Senate President Mitch Carmichael and House Speaker Tim Armstead say they’ve been talking about the state budget almost every day and that their longstanding friendship has helped with their talks.
They served together in the House of Delegates, starting with Carmichael’s election as a delegate in 2000 following Armstead’s election in 1998.
“We’re friends We’ve talked every day throughout this,” Armstead said Friday. “That’s how it should be. We don’t have to put our friendship aside simply because we disagree on an issue. The fact that we have a friendship will help us find a common ground here.”
Armstead said it’s not uncommon for the House and Senate to disagree on the finer points of some big issues, even if both are controlled by the same majority party. He said that’s a factor in what has happened with the budget talks.
“I think this is how government works,” said Armstead, R-Kanawha. “It’s not always that there are differences within one house. I’ve been here almost 20 years and there have been a lot of differences — whether it was a Republican-controlled House and Senate or a Democratic-controlled House and Senate — that the two houses didn’t necessarily agree on particular measure.
“I don’t see that there is anything wrong with that. I think that is why you get in a room and agree on a solution. I’ve been in the room as minority leader working with the Democratic-controlled House on trying to reach compromise with the Senate when they disagreed with the Senate.”
Carmichael described the differences as a matter of viewpoint on how the income tax reductions would work. He emphasized his belief that the measure amounts to a tax cut starting Jan. 1 and over the coming years. House leaders doubt that math in relation to the other taxes that would be raised.
“It really needs to be identified that what is missing from the public discourse on this is we just put forth a tax cut for West Virginia citizens that puts money in working families’ pockets,” Carmichael said Friday. “It’s a Republican initiative that’s signed onto by a Democratic governor, and it’s encountering opposition.
“I’m explaining it as a matter of philosophical orientation of the parties in regards to traditional roles.”
As talks continue this week, Carmichael emphasized the need to include everyone. House leaders described being frozen out of earlier negotiations between the Senate and the governor.
“We want to work this out as a three-party entity in this democracy that our founding fathers set up. The House has a valid role and we appreciate and respect their input,” said Carmichael, R-Jackson.
“As a Senate we will be accommodating to all sides. We want to hear all sides. We will absolutely extend an opportunity to the governor, to the House, to everyone to speak about this budget issue.”
Reacting to the votes on Friday evening, Governor Justice described a possible budget deal as a five-legged stool where four of the legs — himself, Senate Republicans, Senate Democrats and House Democrats — were functioning in cooperation.
“You’ve basically got four legs of a five leg stool that are all saying we want to be heard. I’m not going to spend a great amount of time beating on the leg of the stool that’s performing kind of strangely,” Justice said.
Much of the attention about budget negotiations has focused on friction between Justice and Armstead. Each accuses the other of being unwilling to budge.
But on Friday evening, the governor also pointed to differences between the Republicans in the House and Senate.
“The House doesn’t even want to talk to the Republican Senate members. How do you think they’re going to talk to me? They don’t want to talk to anybody,” Justice said.
Miley, who was among four delegates standing behind the governor as he made his remarks Friday evening, said he thinks the House, the Senate and the governor will be able to reach an agreement.
“Despite what some people see happen down here in Charleston, I am an optimist in believing that the speaker and the governor will be able to sit down together and work through their differences. I really believe that,” Miley said. “Sometimes when you get down here under the dome, feelings are hurt, egos come into play and you maybe do things or say things you might later regret.”
Miley has served with Armstead since his own election to the House in 2004. He served as speaker in 2013 while Armstead was minority leader, before the House flipped to the Republicans.
“I know the speaker well, I’ve known him for 13 years. I admire him tremendously. I know the governor, obviously, as well. So I know the two of them have the best interests of West Virginia at heart and the best interests of the citizens.
“I just know they’re going to be able to work through this impasse. Just perhaps now wasn’t the time to do that. I thought it was but the speaker and his leadership team didn’t think so. But I’m convinced that they will indeed find resolution. We have to. We have no choice.”