There are several ways Gov. Earl Ray
Tomblin proposes to balance next fiscal year’s budget. Some of those include
shifting money to and from state agencies.
State Deputy Revenue Secretary Mark
Muchow told members of the Senate Finance Committee Thursday the governor’s
budget proposes suspending for one year the annual $11.5 million allocation
from the general revenue fund to the state Road Fund and reducing the annual $8
million in sales tax revenue which goes to the state School Building Authority.
Other shifts include approximately
$500,000 from the Infrastructure Development Fund and $4.3 million from the
Public Port Authority. Bills will be introduced by the governor to reflect the
proposed changes.
The governor’s budget for a second
straight year takes money from the Rainy Day fund. State Budget Director Mike
McKown told members of the House Finance Committee Thursday he believes bond
rating agencies would have more concern if money is taken from the Rainy Day
fund again for the 2017 fiscal year budget.
“We used $100 million last year and
we’re using $68 million this year. They (rating agencies) see that as relying
on that to balance your budget and they know that means you’re not structurally
balanced,” McKown said.
The state now has the second highest bond rating because the
Rainy Day fund is still at approximately $800 million dollars and it annually
addresses its pension debts. McKown said the lack of diversity in the state’s
economy is probably the only thing keeping it from a higher bond rating.
