Governor Tomblin, administration
officials and Democrat legislative leaders huddled behind closed doors at the
Capitol Wednesday to confront the growing challenge of how to fill a hole
of at least $180 million in next fiscal year’s budget.
The meetings ended with no
consensus on how to make up the shortfall, which is putting increasing pressure
on state leaders to make tough budget decisions as the legislative session
winds down.
Tomblin’s proposed budget is
balanced based on cuts in spending and passage of six bills, including one
controversial measure that would take $39 million in lottery profits designated
for cities, counties, thoroughbred and greyhound breeders and shift the money
to the General Fund.
The proposed budget already
includes dipping into of the state’s emergency savings account–the Rainy Day
Fund–for $83 million, and now officials believe they will have to go
much deeper.
Senate Finance Committee Chairman
Roman Prezioso and House Speaker Tim Miley both say it may take up to $200
million out of the fund to balance the 2015 spending plan.
The fund was created in 1994 and
now holds $920 million. The fund is designated for
emergencies, such as flood assistance, but its solvency
also preserves a high bond rating for the state. If approved, this
will be the first time the Rainy Day fund will have been used to balance
the budget.
The Governor and House and
Senate leaders are also considering new revenue. The possibilities
including raising the 55-cent a pack cigarette tax and a temporary
increase in the six percent sales tax. Many Democrat
lawmakers fear that raising taxes will hurt them at election time.
The indecision among Democrats
has prompted some to call for a rare joint House-Senate Democratic caucus
to see if the majority party can reach consensus .
Balancing the budget has become
increasingly difficult the last few years as the coal industry
has slowed, gambling receipts have declined and Medicaid costs have increased. Tomblin
imposed a hiring freeze and spending cuts this fiscal year and more
are proposed for next year.
