6:00: Morning News

State budget impasse. Now what?

The special session of the West Virginia Legislature has recessed until May 15. Lawmakers met for two days to consider the latest budget-related proposals, but could not reach a consensus.

(Read more from MetroNews statewide correspondent Brad McElhinny.)

The revenue measure agreed to by the Senate and the Governor lowered income tax rates, but raised the consumer sales tax, corporate income tax and added a wealth tax. Separate, but related, is a plan to increase gasoline taxes and DMV fees to fund road repairs and construction.

The House quickly voted down the revenue package along party lines. The Senate took up the bill anyway and passed it 32-1, causing the House to take a second vote where the bill again failed.

Following those votes, the Legislature left town with plans to return in ten days.

It would be overly simplistic to dismiss the two-day special session as a waste. As previously pointed out here, it was important for the lawmakers to get votes on the record. We know for certain now the proposal pushed by Governor Justice and the Senate is not acceptable to a united Republican majority in the House.

I’ll come down on the side of optimism and say that’s progress… sort of. Now it is necessary for the negotiators to seriously contemplate what they are willing to change in their positions. George Bernard Shaw said, “Progress is impossible without change, and those who cannot change their minds cannot change anything.”

Of course, change is not easy, especially if one’s position is based on a deeply held principle, and we have those among the legislators and the Governor.

Justice is convinced state government cannot make deeper cuts into services and that additional revenue, including a taxpayer-financed road plan, is essential to the state’s recovery. Senate Republicans will abide by higher consumption and business taxes if income taxes are lowered to stimulate growth. House Republicans say they have a responsibility to their constituents to hold the line on spending and higher taxes.

The two day session and the votes have firmly established those positions, so today it is difficult to imagine where change can come from, but change they must. The only alternative is a government shutdown on July 1 which would be a disaster.

Given what has happened so far, it’s time to move away from an approach where an agreement can be reached where all sides are pleased. It does not appear that common ground exists. The fallback position is a budget where none of the principles are satisfied.

Then we will know that they have truly reached a compromise.





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