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Governor says long-term financial outlook is just a piece of paper; Finance chairman says that’s ‘the governor just not understanding the legislative process’

Lawmakers and the public used to benefit from an extended financial outlook provided by the executive branch to consider long-term budgeting.

But lawmakers have had no such tool for years, and they’d like its return. A resolution introduced during the ongoing special session, HR1, would require a 5-year projected fiscal analysis of any tax cut or increase prior to consideration in the House.

Gov. Jim Justice

When Gov. Jim Justice was asked during an administration briefing this week about such long-term outlooks, the governor was dismissive of their value.

“That’s just totally ridiculous to say ‘Here’s a piece of paper. I haven’t gotten this piece of paper since 2018.’ And I would say to you my god a living, you must be living in a cave. I mean, this state is taking off like a bloomin’ rocket ship. Not having that piece of paper, who cares? Who in the world cares?” Justice said.

Eric Tarr

Senate Finance Chairman Eric Tarr, R-Kanawha, says that view is nonsense. He said lawmakers would benefit from the perspective.

“You have 134 people to communicate with, and when they put out a 6-year plan that’s out there for the public to see and us to see and go through and pick it apart — and it helps us in our assessment,” Tarr said today on MetroNews’ “Talkline.”

“I think that may be the governor just not understanding the legislative process.”

The last West Virginia fiscal forecast apparent in the state Budget Office archives is from 2019, nearing the end of the governor’s first term. Such reports laid out scenarios for economic indicators such as tax trends, energy production and total general revenue fund trends.

Lawmakers have grumbled for a few years about not receiving the reports, especially as they are expected to consider tax cuts or allocations that could affect balancing the budget on an ongoing basis. The issue is particularly timely because Governor Justice has called lawmakers into special session to consider a 5% personal income tax cut even as state revenues have been flat.

When the governor was asked about providing long-term forecasts during this week’s administration briefing, he did not agree with the premise.

“I don’t say this harshly in any way, but for anyone who has brought that question to you or that proposal to you — it’s just not fair; it’s just not fair. We have supplied more information than you can ever, ever, ever supply, and we will continue to do that. But I will take your comments and make sure we supply just that,” Justice said in response to a question from reporter Briana Heaney of West Virginia Public Broadcasting.

The governor made reference to a 6-year plan that he was presented right as he entered office, when the state faced a multi-million dollar financial gap. The governor characterized the outlook as dire predictions that never came to be. “So really and truly that six-year plan was worthless,” he said. “Worthless.”

The next reporter to pose a question to the governor, Steven Allen Adams of the Ogden newspapers, held up a copy of the last long-term financial forecast in his possession and told the governor there hasn’t been one since.

Justice shook his head and pushed back on that too.

“I’m a guy that believes in, realistically, hoping that the glass is half full rather than half empty. You know, which would you rather have me done — would it have made you feel better if I had supplied or our tax people or Department of Revenue people would have supplied you with a chart that every single year it would have been like the charts that happened before I walked in the door?” Justice asked while using a pen to mark up a piece of paper on his desk.

“Would you rather have a piece of paper and this state so dead last in everything coming or going — or would you rather have surpluses like you can’t fathom and all the goodness going on, or would you rather have a piece of paper? At the end of the day, I had no idea. I had no idea whatsoever that we haven’t supplied that piece of paper since 2018. But in all fairness to the folks that would supply that, my God a living, there’s so many other things or parameters that are so much more important than that piece of paper.”

Tom Takubo

Senate Majority Leader Tom Takubo, R-Kanawha, serves on the Finance Committee and said the long-term forecasts would be beneficial.

“A six-year plan would be incredibly helpful,” Takubo said this week on MetroNews’ “Talkline.”

“I mean, we’ve made major tax cuts — when you talk about not just a 25% reduction in the personal income tax, but eliminating the Social Security tax, we’ve removed taxes on veterans and personal property, all really, really helpful things, especially with what’s going on with inflation nationwide. But we don’t to back ourselves down into a hole. The last thing you want to do is go back in and raise taxes because you’ve overshot.”

Tarr said lawmakers keep asking for a long-term forecast but never receive it. He said legislative staff has had to construct a version of a long-term outlook, but he called that a “blurry” view.

He said insight from the state Budget Office would provide helpful guidance.

“Even if the information is off a little bit, there’s a lot of meat on the bones of a six-year plan that you can go in and say ‘OK, this is something we really need to look at. This is something we can control for in the future because if we wouldn’t have seen it in a six-year plan we wouldn’t have adjusted for it ahead of time.’ Instead we get surprised by it,” Tarr said.





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