West Virginia Gov. Patrick Morrisey, in his first State of the State address, promised that his administration will fill a budget gap of hundreds of millions of dollars.
He described his budget proposal as the Mountain State Comeback Budget.
“We’ve inherited some big problems. And then there’s our budget. Now, the most basic rule of budgeting when you’re a family sitting at the kitchen table, or you’re the state of West Virginia, is that you can’t spend more money than you make,” Morrisey told lawmakers gathered at the State Capitol.
The administration is proposing a $5.323 billion general revenue budget. That’s just a smidge higher than last year.
The administration’s budget officials anticipate some spending cuts characterized as “targeted,” while also acknowledging some sources of one-time dollars will be necessary to fill a gap this coming fiscal year.
“We’re not going to propose new ongoing programs without new ongoing revenue. We plan on over 2% of general revenue budget reductions and many other changes to bring our budget to balance and to protect taxpayers as we go after waste, abuse and overspending in the system,” Morrisey said Wednesday evening.
Representatives of the administration will present their budget proposal and underlying reasoning at 9 a.m. Thursday before the House Finance Committee. While that meeting is still going on, at 9:30, administration officials will present their projections on state revenue to the Senate Finance Committee.
Morrisey’s administration has projected a $400 million deficit for the coming fiscal year. Morrisey has said his administration has identified several drivers of a potential budget deficit, which they say will be filled.
The highest figure is a $153 million shortfall on the state’s share of Medicaid spending. Next is $62 million to the state’s share of expenses related to the Public Employees Insurance Agency. And Morrisey has described big expenses for education, corrections, public defenders and tourism.
Morrisey has said $47 million needed right away to fund Division of Corrections and Rehabilitation though June.
Morrisey has described an additional financial pressure, saying additional personal income tax cuts that the state took on this year don’t match with the spending demands. The governor has said he supports tax cuts, but he said the state took on the latest round without identifying a way to cover budget demands.
The previous governor and legislators established a $400 million personal income tax reserve fund for this kind of situation, but Morrisey has described reluctance to use it — saying that would amount to using one-time dollars for ongoing expenses.
The state Democratic Party, in response to Morrisey, said his administration should focus on pressing issues affecting working families, teachers, children in foster care and people struggling with addiction. The Democrats characterized his focus, instead, as being on special interests and political allies.
“First and foremost, the Governor must explain West Virginia’s financial crisis,” the Democrats said in a press release.
“If Morrisey is telling the truth about a deficit, then he must explain how he plans to close a $400 million budget gap without gutting essential services for West Virginians.”
The Democrats pointed toward statements by the prior governor, Republican Jim Justice, who left office saying the state’s finances are solid.
“West Virginians are tired of being lied to. If there is a deficit then our ask of Governor Morrisey is to explain to us why he doesn’t believe Senator Jim Justice’s budget analysis and why he doesn’t trust the work of the Republican majority,” said House Minority Leader Sean Hornbuckle, D-Cabell.
“If what he is saying is true we want to work with him to help fix the issues in a way that doesn’t hurt public education, healthcare, current economic development projects and jobs, or vital programs. The people of West Virginia need real leadership, not more political spin.”