Storch: Navigating the Fiscal Maze – W.Va. Budget for 2025

As the gears of governance have come to a halt in the Mountain State as of midnight Saturday, March 9, the governor and his team have been reviewing pieces of legislation passed and how his signature may affect it.

In his briefing March 15, Governor Justice was noticeably upset the Legislature did not listen to revenue experts and passed what they called a “skinny” budget. There was talk the final few weeks of the 60-day session, the Legislature would be back in May, with limited items on the call, to address the fiscal year 2025 budget. It sounds like this could happen as soon as April.

In April, the spotlight will certainly be bright on anyone on the ballot May 14, hoping to convey that ballot standing until November. Primary opponents will be watching, looking to pounce with statements indicating it costs the state $35,000 per day when the Legislature is in session. The critical task of passing a budget for the next fiscal year looms large. With each line item and budget allocation, the state’s financial trajectory is shaped, influencing the lives of every citizen.

At the heart of this process is the delicate balance of meeting the diverse needs of West Virginians and ensuring fiscal responsibility. The budget is not merely a collection of numbers, it is a blueprint for the state’s commitments and priorities. Each body prepares one. The Governor presents his to the House and Senate finance committees the morning following outlining his priorities during the State of the State address. The House works theirs, and likewise the Senate works theirs; each side alternating taking lead.

This year, Senate Bill 200 became the budget bill that passed both bodies and ultimately made it downstairs for the Governor to sign. In his briefing March 15, he indicated it is his intention to sign but is also his intention to call the Legislature back to fix this.

Education stands tall as one of the keystones of any budgetary discussion. Investment in schools, from early childhood programs to higher education institutions, paves the way for a brighter future. To anyone who listened to his briefing or read his remarks, this is where the Governor’s frustration starts. During his State of the State, he mentioned the need for childcare for the state’s young families. Nothing notable came out of the second session of the 86th legislature. Governor Justice has stated this item will absolutely be included on the call.

His objection, noted in writing, was to funding to higher education and also made mention to House Bill 4008, passed and signed in 2022, which mandated performance-based funding be developed for all colleges and universities in the state.

According to theGovernor, inclusion and exclusion of certain institutions is not the result of objectively applying the formula. He further stated this should be accomplished on a fair and objective basis, which is transparent to all. Add to this, the cloud of a potential $465 million clawback of COVID relief funds from the US Department of Education which has been hanging over the 2024 regular legislative session.

It will take more than a three-day session, coinciding with interims, to get this budget addressed and passed.

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