CHARLESTON, W.Va. — A bill is moving through the state Senate would eliminate the state pop tax on July 1, 2024 while creating a new revenue stream for the WVU School of Medicine and the state’s other two med schools.
The bill, SB 533, was approved by the Senate Finance Committee Thursday morning.
The 1-cent tax has funded the WVU School of Medicine since the tax’s creation in 1951. The legislation removes the tax and creates a funding stream for the WVU, the Marshall School of Medicine and the West Virginia Osteopathic School of Medicine from the existing state Insurance Premium Tax. WVU would receive $14 million, Marshall $5.5 million and $3.9 million for the Lewisburg-based osteopathic school.
WVU Vice President Rob Alsop told the finance committee Thursday that WVU was approached in recent months about its interest in getting its med school money from another area. Alsop said they were told of the desire to eliminate the pop tax by lawmakers. Alsop said WVU supports the bill.
“We’re supportive of this legislation and having a dedicated revenue stream perhaps may not have the target that the soda tax has had on WVU in the past,” Alsop said.
The funding levels proposed from the premium tax represents what WVU receives from the pop tax and what Marshall and the WVOSM receive in general revenue funding from the state. The bill under consideration is revenue neutral, officials said.
WVU receives an additional $16 million for its health sciences programs from other parts of the state budget. The bill does not prohibit that from continuing to happen. The other two schools could also get additional funding. Alsop said the bill sets a minimum level of funding.
“Since we had a 40% earmark, we said, let’s have all three medical schools have the same level of earmarking through the premium tax,” Alsop said. “The legislature still has the power to appropriate (additional funds), like they do currently with us, but it just puts all three of us in the same bucket with a minimum level of funding.”
Alsop said there’s always a risk with change but he said WVU feels good about the assurances it’s received from leading lawmakers.
“We’re okay with this concept. We have a commitment that we’re being made whole in the budget and have a commitment that in the funding formula that will be our base,” Alsop said.
The bill now heads to the full Senate for consideration.