CHARLESTON, W.Va. — House of Delegates Finance Committee Chairman Eric Nelson says the House hopes to have outlines of a budget that’s different from Gov. Jim Justice’s plan within the next two weeks.
“It is my goal and House leadership’s goal to have a blueprint out early,” Nelson said Monday on MetroNews “Talkline.” “The last thing we want to do is to come into the final week or two of the session and run into some of the issues that we did last year.”
Justice’s proposal to deal with the budget crisis includes taking $123 million out of the state’s Rainy Day Fund to fill a budget gap in the current fiscal year while cutting $30 million in spending and increasing taxes by $450 million to meet next fiscal year’s projected $500 million revenue shortfall.
The House plan will be different, Nelson said.
“It will be going more toward a middle ground approach,” Nelson said, who didn’t rule out a tax increase as part of the proposal.
The plan may include $100 million that Nelson said could come by refinancing the state’s pension debt which is currently scheduled to be paid off in 2034. The refinancing would extend the payments for a dozen years, Nelson said.
“If we were to extend our obligation by just 12 years we have the potential of saving $100 million a year. Granted, it would cost us a little more over the long run but currently it would save us $100 million,” he said.
The state currently spends about $500 million to stabilize its pension plans.
Nelson appeared lukewarm Monday to Justice’s proposal to raise the gasoline excise tax by 10 cents a gallon. He said he’s concerned about the impact on border counties.
“We are so subject to border hopping and losing sales in the long run. We’ve got to look at the whole equation and not just jump to a quick conclusion,” he said.
Nelson said Justice’s gasoline tax increase would actually be closer to 13 cents more a gallon.
The House Finance Committee continued budget hearings with state agencies Monday at the state capitol.