W.Va. State Agencies Could Face Budget Cuts Again

West Virginia state agencies could face budget cuts for the second time in two years. Department of Revenue Secretary Bob Kiss sent a letter to agencies this week telling them to prepare both a base budget and one with a 7.5 percent cut.

State Budget Director Mike McKown said that agencies should expect a 7.5 percent budget reduction.

McKown says the state faces a more than $300 million budget gap for the fiscal year that begins July 1, 2014.

Kiss' letter attributes the budget gap to several factors. They include Medicaid, a slowdown in the coal industry, declining lottery revenues due to competition in border states and a sluggish national economy.