State records record surplus

West Virginia ended the fiscal year with a record $1.3 billion surplus; some of that has already been spent in this year’s budget and a quick special session today will put $150 million in the road fund. That leaves about $400 million in excess revenue. These numbers were presented by personnel from the State Department of Tax and Revenue at an interim meeting of the Joint Committee on Finance.

Because of the excess, there was no mandatory contribution to the state’s rainy day fund, which has a balance of about $800 million. State Budget Director Michael Cook noted the state’s pension funds, on a 40-year recovery plan, should be fully funded within the next 10 years, dumping an additional annual $400 million into the budget.

Secretary of Administration Dave Hardy said the administration closely monitors the financial stability of the Public Employees Insurance Agency. “For this year … we’re fine…Going forward there has to be lots of conversation.” West Virginia Gov. Jim Justice has pledged no PEIA premium increase during his tenure, which concludes in 27 months, January 2025.

Mark Muchow, administration deputy secretary and the state’s financial guru, each month details the minutiae of taxes collected. Most tax collections are roaring past last year’s, particularly severance taxes paid on oil and natural gas. The cost of natural gas has tripled in the past year; the cost of coal has doubled.

Senate, House end special session 4. Return to 3 tomorrow.

On Saturday night, West Virginia Gov. Jim Justice called the legislature into special session. The purpose was to transfer $150 million to the Department of Highways to pave secondary roads and to pass a bill creating certified industrial business development districts. This was the legislature’s fourth special session, sandwiched on top of special session 3, which is still in recess. Both houses passed the bills and adjourned Monday evening.

House leaders announced they will return to take up special session 3 on Tuesday, which has on its agenda the governor’s bill to lower the personal income tax and outlaw abortions, with certain exceptions. Speaker Roger Hanshaw has said previously the session will be short—he plans on doing nothing more than appointing conference committee members on the abortion bill.

The problem is, legislators can’t seem to agree on exemptions—favored by a majority of Republican women--or on prison terms for physicians performing abortions. The story continues tomorrow.

The Joint Committee on Health and the Legislative Oversight Commission on Health and Human Resources did not meet because of the overlapping legislative session.