MORGANTOWN, W.Va. — Two state senators are expressing concerns following the state budget presentation during interim legislative meetings.
Senators Mike Oliverio and Joey Garcia were guests this week on WAJR’s “Talk of the Town.”
Oliverio said revenues have been flat for the last few years except for two spikes around the pandemic. The influx of federal dollars increased as well as severance and personal income tax revenues but since then revenues have been flat while expenses have increased.
“Whether it’s coal, oil, or gas, you typically have more people employed while you’re doing that,” Oliverio said. “So, you end up collecting more personal income tax as well as an increase in the severance taxes being collected.”
The total state spending plan for this year is about $5 billion. Personal income collections account for $2 billion of the total and have been cut by 27.25 percent since March of 2023, according to Oliverio.
Garcia said personal income tax projections are dropping based on state figures at a time when several government and mining jobs are being lost across the state.
“We are down on that year over year by about four percent based on the numbers that came in at the end of May, so we are starting a trend, I think, of downward revenues,” Garcia said.
The addition of the Hope Scholarship is of great concern for Oliverio. Beginning in the 2026-2027 school year, the scholarship open to all school-aged children living in West Virginia as long as designated enrollment figures are met.
“We don’t want to in any way neglect our public schools; we need to continue funding them strongly as well, so that’s a challenge ahead,” Oliverio said.
Garcia is concerned about the cost projections for the Hope Scholarship and the ability of the state to maintain vital services, consider locality pay and provide pay raises for public employees.
“The one that jumps out at me is the Hope Scholarship,” Garcia said. “I mean a $190 million increase when I don’t believe we’re funding our schools, teachers, and service personnel like we need to.”
Then there are the rising costs of the Public Employee Insurance Agency (PEIA). Garcia said costs are projected to increase by $49 million in 2027 and $56 million in 2028. State employees are becoming weary of the semi-annual PEIA financial emergency, according to Garcia.
“There’s ultimately going to be a decision that many public employees have to make, which is, is this still worth it? Is the promise I was going to be given healthcare and the fact that I get a raise every couple of years and it’s taken back—are people still going to be state employees?”