Gov. Earl Ray Tomblin will propose
using $85 million from the state’s Rainy Day reserve fund to balance the 2016
fiscal year budget, according to Fitch Ratings. If approved by the
Legislature it will make the second year in a row the state has had to tap into
savings to balance the budget.
Last year, the state needed $100
million from the emergency account to achieve a balanced budget. Even
after the withdrawal, the state still has approximately $860 million in
reserve, making West Virginia
Fitch detailed Tomblin’s plans in a
report released Tuesday. “The Governor is expected to propose a further
$85 million use of the RDF (Rainy Day Fund) in fiscal 2016, lowering reserves
to a still solid 18 percent of general fund revenues,” Fitch reported.
Overall, Fitch said the state’s
finances are stable and it maintains a AA+ rating, the second highest rating
the financial services company issues. According to its website, Fitch is
one of three rating agencies “first recognized by the Securities and Exchange
Commission as a nationally recognized statistical rating organization in 1975.”
Tomblin’s proposed use of the Rainy
Day fund may meet opposition when lawmakers gather starting next week for the
2015 legislative session. Leaders of the new Republican majorities in the
Senate and House of Delegates have expressed more interest in cutting spending.
They have asked state agencies to provide detailed breakdowns of their
budgets for review.
“You have to ask the questions,”
said Senate President Bill Cole (R-Mercer) “You have to dig a little bit deeper
than just accepting what you see on the surface.”
Cole said he would not rule out using Rainy Day monies, but it’s
not his first choice.
