Lawmakers nibbled around the edges of a special session agenda but did not gobble up Gov. Jim Justice’s main entree, a proposed 5% personal income tax cut, before adjourning until this coming Sunday evening.
That means the tax cut proposal still has a chance of passage, although lawmakers generally have not expressed certainty that the state’s finances are ready. Two potential indicators will be more clear this week as the most recent monthly state revenue figures are made public on Tuesday and the Public Employees Insurance Agency discusses its most recent finances at a meeting on Thursday.
The House and Senate agreed to gavel back in at 6 p.m. Sunday when regularly scheduled interim legislative meetings were already set to occur.
Lawmakers went into the start of today’s special session already knowing the ambitions were modest — and that the big stuff would likely be set aside until later. Besides the tax cut, the meatiest agenda items still to be considered include a tax credit for childcare and a bill that would specify that public charter schools may receive funding through the state School Building Authority.
Before legislators gaveled in today, Senator Mike Oliverio anticipated most of today’s focus would be on supplemental appropriations bills. “So we’re working through those and probably will recess late in the day and then come back on Sunday during our regularly scheduled interim times and begin to address some of the other issues,” Oliverio, R-Monongalia, said today on MetroNews’ “Talkline.”
Governor Justice first called for the 5% reduction on July 1, the start of a new fiscal year, catching legislative leaders by surprise.
The state instituted a 21.25% personal income tax cut this year in a package that included further automatic reductions under certain economic conditions.
West Virginia hit those economic conditions, which triggered an additional 4% personal income tax cut to go into effect.
Justice wants another 5% on top of that.
Lawmakers have generally expressed caution about the governor’s 5% tax cut proposal because other tax cuts are still going into effect and because there are additional spending commitments also still going into effect — like the continued rollout of the Third Grade Success Act and estimated additional costs for more Hope Scholarship enrollment.
“I’m cautious. What I’ve asked of the governor is a forecast — a 5- or 6-year forecast — and show us all these different revenue streams, what they look like going forward and then implement into that forecast the expenses of the things we passed the last few years,” Oliverio said.
Oliverio said he didn’t feel like he had that information today to make a call on the tax cut.
“Can we afford an additional 5% you know? Does it make sense? Show us the forecast and give us some comfort so we know those dollars will be there from other sources to meet the citizens needs,” Oliverio said.
Senator Mike Woelfel, D-Cabell, similarly anticipated a modest agenda on the first day of the special session.
“No clue why we’re here,” Woelfel said on “Talkline.” “Some of these supplementals are important, but we certainly could have done that when we’re here next week anyway.”
Woelfel noted that the governor’s call for the special session, including a list of bills to be considered, came out for the first time on Saturday evening. He said lawmakers still don’t really have any specifics about whether the state projects ability to afford another 5% income tax cut. He said that big call should be put off until a new governor is elected and the next legislature is seated.
“I don’t think that’s knowable. No, I don’t know. I don’t have any information that would suggest anybody has that analysis,” he said. “Really, let the new governor and new legislature take a look at this.”
Lawmakers did complete action on six appropriations bills today. They include:
- a bill providing $10 million to the Communities in Schools program
- $150 million to the State Road Fund
- $1.2 million for repairs and equipment for the state Veterans’ Home in Barboursville
- $375,000 for repairs and equipment for the West Virginia State Police
- $2 million for West Virginia University for work at the Rockefeller Neuroscience Institute
- $379,000 to the Department of Education for pay increases to teachers at the School of the Deaf and Blind that were inadvertently left out of the budget bill for pay increases
The remaining introduced bills were read the first time and referred to a committee.
When today’s activities in the House of Delegates concluded, Democrats gathered near the steps outside the chamber to say the special session was “anything but special.”
“We saw on the House floor today there was a lot of confusion on the legislation we were taking up and what West Virginians really want to see,” said Minority Leader Sean Hornbuckle, D-Cabell.
Heading into the next week, he said, “We are asking that we have open and genuine communication to try to solve these issues for West Virginians.”