CHARLESTON, W.Va. – The West Virginia Center on Budget and Policy is warning against trying to close the state's $600 million budget gap entirely or mostly through cuts. Governor Jim Justice wants to raise $450 million in new revenue - with about half of that coming from increased business taxes.
But, his plan faces a GOP-controlled Legislature - especially on the House side - dominated by opponents of government spending.
Ted Boettner, the executive director of the Center on Budget and Policy, says reaching balance through just cuts would hurt government programs necessary for economic growth.
"If West Virginia doesn't raise substantial revenue to close its $600 million budget gap, schools will see a huge decrease in funding, as will our public colleges, our health care, our senior centers," he explained.
House of Delegates Speaker Tim Armstead says West Virginians already are taxed too much, although he may be open to closing some sales-tax exemptions. For his part, Justice has said the state can't cut its way out of the crisis.
After several years of across-the-board cuts under former Governor Earl Ray Tomblin, state agency funding is already down 20 percent. Justice has also laid out an alternative budget that depends on further deep cuts, perhaps to show what would happen to popular programs.
Boettner says some lawmakers might be willing to risk going in that direction, but most West Virginians think more cuts would endanger needed services. He says there is a "huge disconnect" between the public and many lawmakers on this.
"According to a recent poll, 70 percent of West Virginians and a majority of Republicans said they would be willing to pay more taxes if it means no cuts to important public programs like education, roads and public safety," he said.
Boettner says the new group Protect West Virginia aims to educate the public through workshops around the state. He says it also wants to keep folks engaged on budget questions during the legislative session.
Boettner says on the website ProtectWV.org, you can learn more and see ways to make your voice heard on the issue.
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West Virginia lawmakers are clamping down on corporations trying boost environmentally and socially responsible investing. A new report by EcoConsult Solutions finds their actions will likely cost taxpayers at least $9-million, and perhaps as much as $29-million dollars annually. Senate Bill 262, passed last year, restricts the state from investing in companies deemed to be energy boycotters. Among those boycotted include BlackRock, Goldman Sachs, JP Morgan Chase, Morgan Stanley and Wells Fargo.
Jim Kotcon, chair of the West Virginia Sierra Club, said restricting long-term financial investments in the form of bonds could end up costing residents and taxpayers by reducing the amount of money the state has for public services and programs.
"This appears to be an effort by the state government to help bail out the coal industry and to deny the real cost of climate change on West Virginia citizens," Kotcon said.
More than two dozen states are suing the federal government over a U.S. Department of Labor rule change on environmental, social and governance, or ESG, in workplace retirement accounts. The rule allows 401(k) providers to consider climate change and other issues when making investments.
Kotcon said environmental groups believe state investment funds should take into consideration environmental and social factors, especially since West Virginia communities are struggling to cope with increased flooding and extreme weather events driven by climate change.
"It has become sort of an extremist initiative," he said, "trying to penalize financial institutions that are attempting to do the right thing."
More than a dozen states so far have passed or have pending bills that would pull state funds from investments deemed to be adverse to the oil and gas industry, according to the report.
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A Minnesota House committee heard testimony Thursday about the governor's proposed spending plan for education. As these talks unfold, public polling indicates voters want to see more dollars go toward improving public schools.
Gov. Tim Walz's plan calls for boosting the general education funding formula over the next two years and tying it to inflation, while adding more staff such as counselors and social workers.
State Education Commissioner Willie Jett touted the overall proposal during the committee meeting.
"We must never lose sight of the fact that a well-supported educator workforce is fundamental and critical to the survival of our schools, and the well-being and academic success of our students," he said.
Nationally, a new American Federation of Teachers poll found 66% of voters think the government spends too little on education, and nearly 70% want to see more funding. The governor's plan closely aligns with education priorities among legislative Democrats. Republicans, who are in the minority this session, have voiced concerns that too much surplus money would go to underperforming schools.
Minnesota is also looking at boosting unemployment insurance aid to include hourly school workers when they struggle to stay employed over the summer. Rep. Emma Greenman, DFL-Minneapolis, said it's encouraging to see more conversation about helping support staff.
"If your district is like my district," she said, "you're hearing a lot about the staffing shortages, about the need for 'paras' - I hear a lot about that from parents and teachers - about the bus driver shortage."
By "paras," she meant paraprofessionals who help in clasrrooms.
In the AFT poll, teacher shortages and unsafe campus environments were listed as among the most serious problems at schools. The survey was conducted in late December and included input from 1,500 registered voters nationwide.
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Gov. Greg Gianforte delivered his State of the State address to the Montana Legislature Wednesday night, discussing his plans for the state's hefty budget surplus.
Lawmakers are looking at a surplus of $2.5 billion. Republican Gianforte's top priority for the money is tax cuts.
Rose Bender, director of research for the Montana Budget and Policy Center, said the governor's proposal disproportionately benefits wealthy Montanans.
"The governor's income-tax cut proposal gives the wealthiest 1% of Montanans, on average, $6,000 each year in tax cuts, while middle-income families or those near the median income receive on average $50," Bender explained.
Bender noted most of the other tax cuts proposed, such as a property tax rebate, also would skew toward higher-income Montanans. However, she said a child tax credit the governor touted in his speech would be helpful for people with more modest incomes. The proposal would provide $1,200 to families with children age six and under, similar to a federal Child Tax Credit, which expired at the end of 2021.
Bender argued the Montana Legislature should do more this session to make health care costs more affordable and invest in child care, which is costly for families. She added other issues need addressing, as well.
"Montana's experiencing a serious housing crisis, and investing some direct state dollars into long-term housing solutions for families living on lower incomes should be another priority," Bender contended.
In his speech, Gianforte also asked lawmakers to focus on education reforms this year, including what he's calling more "parental rights." The session is scheduled to adjourn April 25.
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