As some point during every state of the state message, the Governor will pronounce the condition of West Virginia strong and braced for the future.
It’s the obligatory applause line that brings members of the House of Delegates and the state Senators in the audience to their feet.
Governor Earl Ray Tomblin put it this way last night: “And with the knowledge and confidence that the state of our state is stable and strong, now is the time to build on our strength.”
Cue applause.
What Tomblin has going for him, however, that not every Governor before him has had, is evidence to back up the bold claim.
West Virginia continues to balance its budget, as required by law, without raising any taxes. In 2012, the food tax, the corporate net income tax and the business franchise tax are all coming down.
The state has not had to layoff any state workers or eliminate any vital services. As state Budget Director Mike McKown said during a budget briefing, “We are positioned as well as any state. We pay our bills on time. We haven’t missed any retirement payments. Our cash flow is good.”
Additionally, West Virginia has $819 million in the Rainy Day Fund, the emergency fund that can be used in a crisis. That surplus has also helped improve the state’s bond rating, which saves the state money when it borrows.
“Not very many states can say many of these things,” McKown said.
Now, there are several key economic reasons for West Virginia’s stable position: demand for high-priced metallurgical coal has pushed up exports by the state; coal severance tax collections are up $266 million since 2006; natural gas production has risen 36 percent since 2004; revenue from personal income tax collections grew eight percent from July to December.
There are also political and policy reasons: the state’s last three Governors (Bob Wise, Joe Manchin and now Tomblin) have been frugal, at least by government standards; state leaders have been reluctant to bring any new spending to the bottom line in recent years.
Of course, the guy in charge at the moment is the person who gets the most credit (or the blame) for the current condition. Therefore, Tomblin is reaping the political benefit. He’s the one who gets to stand in front of a joint session of the Legislature and appear on statewide radio and television to set the tone for the state.
There are, however, troubles on the horizon.
West Virginia’s roads and bridges are crumbling. Public education badly needs a top-to-bottom review. Medicaid costs are exploding. The state’s growth in revenue has slowed to one percent.
But, for now, it’s good to be Governor of the Great State, and it’s always a benefit when a Governor can stand before the state and say with reasonable accuracy that the state of our state is, in fact, “stable and strong.”