{Charleston, West Virginia}...Governor Earl Ray Tomblin announced Monday that most West Virginia agencies must cut their spending by 7.5 percent for the 2013-2014 budget year to avoid a deficit threat blamed on rising Medicaid costs, the sluggish national economy and a slowdown in coal production. Revenue Secretary Charles Lorensen says the current state budget, which took effect July 1st, expects to spend $4.1 billion in general tax revenues. Lorensen expects those revenues to grow by less than 1 percent during the next budget year, while costs will increase by 9 percent. Lorensen says several agencies and programs are exempt from the cuts, including Medicaid, state funding for public schools and prisons.
