November 8, 2009
W.Va. budget has problems, but other states have it worse
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CHARLESTON, W.Va. -- The economic forecast has grown more gloomy for West Virginia's Manchin administration, but is perhaps not as dark as what confronts a number of other states.

October's general tax revenues beat their estimate, but not by enough to erase a shortfall for the budget year that exceeds $16 million. Administration officials now estimate that revenues will miss their $3.78 billion target by around $100 million by the time the fiscal year ends June 30.

The crucial source for West Virginia's highway needs faces lagging revenues as well. The State Road Fund is $3.3 million below projections for the year. With a year-end goal of $631.6 million, officials expect that situation will persist.

"As we go along, the work that we do will be adjusted to match what's available," said Susan Watkins, a Department of Transportation spokeswoman. "We're not panicking yet."

The recession is the culprit in both cases. Sales and personal income taxes are crucial general revenue sources, but weak economic activity has taken its toll on both. The same goes for the tax on vehicle sales, which provides a fourth of the State Road Fund's revenues. Revenues from fuel taxes, by contrast, are $3.3 million above estimates for the year.

Gov. Joe Manchin is banking on reduced spending and a special reserve of $168 million to keep the general revenue budget balanced. But a growing number of other states face much tougher options in the face of recession-battered finances.

Before West Virginia's news, half the states had reported deficit threats in the opening months of their budget years, according to the National Conference of State Legislatures. While four of those states have yet to estimate their shortfalls, the rest predict gaps that totaled $12.9 billion as of Oct. 30.

The dismal roster includes three of West Virginia's neighbors. While Kentucky faced a projected $82 million shortfall, Maryland and Virginia's each topped $1 billion. All three cut spending, while Maryland and Virginia also furloughed workers and eliminated hundreds of state jobs.

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Posted By: Good Grief (2:36pm 11-09-2009)
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Gee, I feel so much better now, knowing that other states may have worse budget problems. This is old news and about as worthwhile as Phil Kabler's meaningless lists related to state cars.

Posted By: vashti (9:20am 11-09-2009)
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Who gets merit raises? i have not seem them in over 6 years

Posted By: St. George (7:07am 11-09-2009)
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Well, the state has save millions of dollars by not replacing much needed retired state workers, one’s that have died and ones that have quit out of frustration. I'm sure they have saved millions by freezing merit raises on well-deserving state workers (the ones that are left) that was implemented five years ago. Of course I hear the administration hires its own workers and since they are not classified as state employees, gives those raises. It seems like the Blagojevich administration was maybe doing something similar. The state is saving money, where it goes nobody knows, I guess. Furloughs and lay-offs are coming; it’s just a matter of time. They have already spoken the words that it may be a possibility; so it’s just matter of time.

Posted By: pipedreams57 (6:37pm 11-08-2009)
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Is that bit of info supposed to make WV citizens feel better? Thats kind of like saying "all of us unemployed laborers got neutered but our neighbors in Virginia got both legs cut off so I don't feel too bad." Gollygeewhizz !

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