CHARLESTON, W.Va. (AP) - West Virginia’s Democratic Gov. Jim Justice said Saturday night that he was near a deal with the Senate Republican leadership to limit budget cuts and overhaul taxes, but lawmakers later passed a spending plan that closes a projected deficit simply with deeper cuts.
Justice has threatened to veto a budget bill with steep cuts he believes will hurt people. Several Republican lawmakers vowed to make the state government live within its means without tax increases. They could be called back for an additional special session called by the governor.
The tentative agreement would have protected public schools, higher education and services for the state’s poorest residents, Justice said. It would have raised the state sales tax from 6 percent to 7 percent, added a corporate revenues tax of 0.00045 percent and in 2018 establish new income tax tiers cutting the current rate 20 percent, he said.
“We’re not there yet, but we’re close,” Justice said late Saturday night as the 60-day legislative session headed toward its close.
However, the Senate and House within hours passed a budget with steeper cuts the governor has criticized and no tax increases.
According to Justice, the tentative deal would have increased the state gasoline tax by 4.5 cents a gallon and started his proposed road reconstruction program aimed at creating thousands of jobs.
It also included his proposal for a 2 percent pay raise for teachers and “a rich man’s tax” that would impose small additional taxes on the state’s wealthiest residents, he said.
The Senate and House had each initially voted this week for budgets with far steeper cuts to balance a budget deficit projected at nearly $500 million in the fiscal year that starts July 1.
The Senate had also advanced a tax overhaul that would broaden and raise the sales tax while cutting the income tax, aimed at eventually eliminating it.
The House had advanced a budget with lesser cuts and a bill expanding the sales tax to cover cell phone and non-medical personal services then gradually reducing the overall sales tax rate.
The Senate later Saturday voted 22-12 to pass a revised budget bill that had deeper cuts than that. It would reduce funding for West Virginia University and Marshall University by nearly 9 percent and by 4 percent or less to other state colleges, contained no pay raise for public school teachers and continues funding for West Virginia Public Broadcasting, said Sen. Mike Hall, Senate Finance Committee chairman.
The House followed early Sunday, voting 63-37. Its Finance Committee Chairman Eric Nelson said it included an additional $48 million cut from Medicaid - dropping it overall from $490 million to $350 million - and using $90 million from the state’s rainy day fund to balance the general fund budget at $4.1 billion. It cuts $1 million from public broadcasting and doesn’t assume any tax increases, he said.
Nelson said that whatever Justice has proposed in his compromise, it wasn’t communicated with the House.
“I say we pass this budget right now and let’s get to the negotiating table,” said Delegate Mark Zatezalo, a Hancock County Republican.
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