Behind closed doors, Justice says mutual understanding develops with House GOP

CHARLESTON, W.Va. — After coming out from behind the big wooden doors of the House of Delegates, Gov. Jim Justice said he learned more about the Republican majority’s positions and questions about the state budget as it takes shape.

This morning in a public appearance to talk about budget talks, Justice had described various negotiators as having been “right at the altar” the prior day.

As Justice talked this morning, he lamented that Republicans had not been ready to decide when offered two choices to fill what he described as the final $45 million necessary to fill the budget gap: a) raise the state sales tax by half a penny or a quarter of a penny or b) increase the state tobacco tax and institute a tax on sugary drinks.

This afternoon, he stepped back from that position, saying Republicans had made it clear to him that they needed a little more time to process some of the specifics of a potential budget agreement.

“I felt like there was things that had maybe been discussed and they hadn’t been vetted quite as fully as I had been led to believe. Not by the other side, but even by my people. I still think we’ve got a ways to go, but I think we’re going to get there,” Justice said in a brief interview by the Rotunda.

The governor said the various negotiating sides are learning to develop mutual respect. And, he said, they’re coming to the point where all sides realize they have to give a little.

“There’s different factions that have different viewpoints and different viewpoints from me,” Justice said in the hallway. “I’ve told ’em just this, that at the end of the day we have a job to do and we need to all try to work together, respect each other’s position.

“And absolutely, without any doubt, the best deal that is ever made the parties get up and they don’t celebrate. They think, ‘Dag, I wish we would have gotten this, I wish we would have gotten that.’ And it is, it’s always that way. Those are the good deals. And so at the end of the day, I think everybody realizes we have to have revenue, we surely need to be responsible enough to get rid of the waste if we can and we’ve got to get on a pathway of hope and prosperity and they get it.”

Counting today, there are 9 days left in the regular legislative session. Justice and legislators face that deadline to figure out together how to fill an estimated half-billion-dollar budget gap.

After feeling frustrated this morning, Justice himself made the closed-door session with the House GOP happen. He had chief of staff Nick Casey get in touch with Speaker Tim Armstead, and the two sides set 1 p.m. as the time for a caucus.

Delegates said Justice sat up front in a seat a row of tables normally used by reporters covering floor sessions. They said he again promoted some of his own ideas for resolving the budget gap but also took questions from delegates.

In earlier instances of such meetings, neither side has provided glowing descriptions. Republican legislators have described earlier Justice appearances at caucuses as one-sided, where he stuck to his guns on his own proposals. Justice recently described a breakfast meeting with legislative leadership as a waste of everyone’s time.

House Speaker Tim Armstead today said Justice’s visit was amiable and helpful.

“It’s always good to have communication,” said Armstead, R-Kanawha. “There wasn’t any meeting of the minds, necessarily, on things. But it’s good to have the communication.

“He came into the caucus and presented what he thinks are still the components of his original plan that need to be done that there’s still quite a bit of heartburn about to be quite honest.”

Armstead said Justice pitched some of the tax components of his original plan. One of the early parts of Justice’s tax proposal was a gross receipts tax on business, and he has said he wants business to play a part in resolving the budget situation.

“There were a number of questions from our members just to try to understand some of the concepts but also to throw out some options about what we’ve been talking about all along in terms of broadening the base, lowering the rate,” Armstead said.

“I think he’s still open to that. And I think he wants to be a conduit if we can come up with something that we can work with him on that he can go to the Democrats and help bring some of the Democratic members on board.”

Armstead said he is still trying to figure out what Democrats want. He noted that the governor has pitched two alternatives for the budget, and the House Finance Committee laid out a potential framework for a budget.

“And they’ve come forward with nothing. They’ve asked a lot of times during this session, Where’s your plan? The governor has brought forth a plan, we’ve brought forth a plan and they have brought forward no plan,” Armstead said.

“If they don’t want to go with either of these and they don’t want to work on anything, I would ask the governor. Hopefully he can work with them and bring them on board if we can make progress.”

While the Justice administration and the House leadership have been talking about possible common ground on the budget over the past week, the state Senate leadership has largely been out of the discussions with the governor.

Armstead said House and Senate leadership met this morning, though, and also hope to find agreement. One key component would be a tax reform bill that was passed Wednesday in the Senate. The House will now have the ability to amend the bill and use it as a tool to resolve the budget.

“We would like to have a proposal that the House, the Senate and the governor agree on,” Armstead said.

House Majority Leader Daryl Cowles also came away from the caucus with the governor feeling good.

“I think the conversation went great,” Cowles said. “He gave us his perspective and sat and answered questions for 10, 15, 20 minutes at least. The back-and-forth was good.”

Cowles said the tone was different from previous interactions between Justice and the Republicans.

“His tone was different, his reception by members of the House Republican caucus was different. Clearly there are differences between us, but good, healthy discussion is how I would describe it,” said Cowles, R-Morgan.

Cowles said there is still more to be worked out, though.

“There are differences, stark differences that remain. I don’t think we’re close to a deal,” Cowles said. “A deal is not imminent, but the conversation has led us to certain things we can agree on and a clear common desire to get the budget done and do the best we can for the people of West Virginia.”

“I think there is reason for hope and optimism, but there’s work to do yet.”