CHARLESTON, W.Va. - State lawmakers are struggling to close a big budget hole, but a close look shows the legislature dug that pit with business tax cuts over the last eight years. Sean O'Leary with the West Virginia Center on Budget & Policy pointed out that state spending has been basically flat for some time, but the tax cuts made since 2006 are part of what is causing a budget gap of more than $200 million next year.

"We're collecting less business tax revenue this year than we did nearly 20 years ago, even before you adjust that for inflation," O'Leary said.

Revenue lost to cuts in the business franchise tax and the corporate income tax would just about equal next year's shortfall, he noted.

O'Leary said the state created a structural problem in the tax and revenue system over the last eight years with big, permanent rate reductions and phase-outs that were unaffordable.

"It's about $425 million for fiscal year 2015," he said, "so that would be balancing the budget, plus some. But it was given away in tax cuts."

Supporters of the cuts said they would spark economic activity, because more businesses would locate or expand here. There is no evidence to support that, O'Leary said, adding that taxes are only a tiny factor in a company's decision - a much smaller part than consumer demand, the cost and quality of labor, or the access to markets or raw materials.

"There's no natural gas industry coming into the state because we lowered the business franchise tax. They're coming into the state because we have natural gas," he pointed out.

The governor has asked to transfer more than $80 million from the state's rainy-day fund, and suggested cuts of another $35 million in items such as race-track subsidies. However, O'Leary said, these are one-time solutions to a permanent problem: the amount of revenue the state takes in.

"If we have to take $80 million out of the rainy-day fund this year, and we expect no revenue growth next year, we're just going to have to do it again. Until we address the structural revenue problem in the state budget, one-time fixes aren't gonna cut it," he said.

The center's latest budget report is available at www.wvpolicy.org.




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MINNEAPOLIS -- Several regional labor groups rallied in Minneapolis on Wednesday, demanding state leaders take action to reflect the sacrifices made by front-line pandemic workers, including releasing money intended as bonus payments.

This fall, a legislative working group failed to come to an agreement on distributing $250 million in front-line worker pay. Republicans insist on divvying up bigger checks to a limited number of workers, while Democrats have pushed for a wider range of recipients, even if the payments are smaller.

Angie Halseth, statewide vice president for the Minnesota Association of Professional Employees and a caseworker at the Lino Lakes Correctional Facility, worries about being left out despite her commitment during the crisis.

"I became, I would say, a nurse," Halseth recounted. "We were used to take temperatures and vital signs. We made meals. We actually received duty belts and training to cover officer posts when we were so short-staffed."

Halseth echoed other calls for the state to go beyond the $250 million investment. She argued the state has the resources to make front-line workers whole. The stalemate is at the center of political differences over whether there should be a special session before year's end.

A range of front-line workers have received praise from elected officials and other leaders since the start of the pandemic. But Halseth argued praise only goes so far when so many have put themselves at risk.

"We have told our stories to the task force, and we'll keep telling them and keep standing together," Halseth emphasized.

Some Republican members of the working group say while they heard many of the stories, they feel the money should go to those who had direct contact with COVID, such as health-care workers.

But Halseth countered at her job, there were scenarios where staff had no other choice but to be in contact with people who were COVID-positive. She added if they became infected, there were situations where they had to use their paid time off, even with some COVID leave available to certain workers.

RALEIGH, N.C. -- North Carolina communities will soon receive funding to preserve green spaces, maintain parks and boost resiliency against the impacts of climate change, the result of hundreds of millions of dollars allocated for conservation and outdoor recreation in the new state budget.

Charlie Brady, executive director of the Blue Ridge Conservancy, pointed out next year, many of the state's rural areas which have traditionally not received public funding, will have access to new resources.

"It will have a huge impact," Brady stated. "Particularly with that much more money than we've had since roughly 2008."

Communities will share $15 million for local floodplain projects to help buffer themselves from more frequent and heavy floods due to climate change. Outdoor recreation contributes around $28 billion a year to the state's economy and supports an estimated 260,000 jobs.

The budget also includes nearly $30 million dollars to aid the North Carolina Trails Program in building, planning and maintaining a dozen state trails, including the new Roanoke River Paddle Trail.

Brady said he believes the pandemic has prompted state lawmakers to pay attention to people's need to get outdoors, as a way to maintain social distancing and stay healthy.

"And this is going to go a long way to support the state trails that have been established by the Legislature in North Carolina," Brady added.

State parks received nearly 20 million visitors in 2020, despite being closed for six weeks when the pandemic began. Brady noted the funding will also help conservation groups acquire and preserve more land; an effort which has been on the decline, despite a spike in demand for parks and natural spaces.

PRINCETON, Minn. -- President Joe Biden is expected to visit Minnesota today to tout passage of the new federal infrastructure bill.

Those working to fill broadband gaps for students in rural areas say the new plan should be a big help. According to the White House, Minnesota is poised to receive at least $100 million to expand broadband coverage across the state, with the possibility of more funding based on needs in certain areas.

Marc Johnson, executive director of the East Central Minnesota Educational Cable Cooperative, said as the pandemic took shape, many of the rural districts in his region had to get creative to ensure their students still were getting lesson plans.

"Sending work back and forth on buses, you know, to kids so that they could paper copies of things and things like that," Johnson recounted.

Johnson pointed out it also was hard for rural districts to set up Wi-Fi hot spots to keep students connected, in part because of weaker cellular signals. He added the funding is vital amid concerns students who could not fully participate in distance learning encountered setbacks in their academic performance.

Johnson also serves on the Governor's Task Force on Broadband. He emphasized Minnesota's east-central region serves as a "bullseye" for underserved areas when it comes to high-speed internet. He noted the extra money will take a lot of pressure off families and schools.

"Districts won't have to spend the money that they're spending right now on all of these measures to help families that don't have access," Johnson stated.

Combined with the $70 million in broadband spending approved by the state earlier this year, Johnson predicted the federal investment will "move the needle" in reducing gaps. Currently, 12% of Minnesota households do not have an internet subscription. The White House said the new funding will also help with internet affordability.