The WV House budget says no to the governor’s tax cut, yes to the Hope grant and flood protection

After more than two hours of debate, the House of Representatives passed its budget proposal on Wednesday afternoon, notably ignoring the income tax cut demanded by Governor Patrick Morrisey.

Debate over the budget bill showed little to no sympathy between House Finance Chairman Vernon Criss, R-Wood, and the Republican governor.

“We never had a conversation with the governor. He never darkened the door on the vice chairman or myself, other than sitting on the bench to listen to Hope Scholarship,” Criss said on the House floor, referring to Morrisey earlier this week surprisingly appeared in the House Finance Committee when he thought members would be discussing it possible changes to the state education voucher program.

Last week, Morrisey posted on his X social media account, “Tax cuts and school choice used to be on the front page of the Republican platform — I guess House Finance Chairman Vernon Criss hasn’t gotten that far yet.”

The Senate passed its budget last weekwhich differed from the governor’s budget proposal but included Morrisey’s requested 10% cut in the personal income tax. The income tax cut is expected to cost $250 million.

The House Finance Committee approved the Senate budget bill. Senate Bill 250and supplemented it with her own proposed changes, including removing the tax cut idea.

During the bill debate, Del. asked. Kayla Young, D-Kanawha, Criss, how he would describe this year’s budget.

His answer: “Responsibly.”

Young replied, “I would say that too.”

The House budget with amendments was approved by a vote 83-14; Republican members were the no votes. The proposed budget includes a 3% pay raise for state employees, which would fund Medicaid with revenue money – rather than surplus dollars as the governor suggested – and $211 million in funding for the Hope Scholarship. It would also add money to the state’s flood protection fund for the first time.

The House’s proposed $5.46 billion budget is $30 million less than the governor’s proposed fiscal year 2027 spending.

“After carefully reviewing the governor’s budget, it turned out that his budget was actually unconstitutional because he actually spent more money than he had revenue,” Criss said.

The House could still agree to a tax cut since they will be okay with it an invoice passed by the Senate to implement a 10% reduction in personal income tax.

West Virginia has a trigger system to accelerate tax cuts, and that formula did not trigger a tax cut this year because the state did not meet its revenue goal last fiscal year.

“We have offered significant tax relief over time. “I believe the governor’s revenue estimate is actually a 5% tax increase this year, and I hope we can continue to provide some relief to West Virginia and put more money back in its pockets so that West Virginians can decide for themselves what’s best for them,” said Del. Marty Gearheart, R-Mercer.

On Tuesday, Morrisey held a news conference at the state Capitol and called on the Legislature – particularly House members – to pass his 10% tax cut.

“I really believe we need a comprehensive income tax cut, and I said that because I’m very concerned about the affordability challenges that we face, and I also know that we need to remain more competitive with other states that we come into contact with,” the governor said.

Hope Scholarship funding is included, with adjustments to the public school aid formula still to be determined

While the House Finance Committee was considering it recent restrictions on the broad Hope Scholarship voucher program To reduce the overall price tag, the budget passed Tuesday would fully fund the program for next year.

The Hope Scholarship, which provides approximately $5,200 to students for private school tuition, homeschooling and more, will be open to all West Virginia students for the first time next school year. There is some uncertainty about how many students will apply the program, so lawmakers are pre-funding the program to accommodate a possible enormous boost in the number of students.

Criss said the governor’s requested sum of state funds, surplus funds and remaining funds in the Hope Scholarship program would total about $230 million.

The House Finance Committee is expected to adopt its bill this week to make possible changes to the Hope Scholarship.

The budget currently includes no adjustments to the school aid formula – about $214 million in funding a House bill that is moving — that could lend a hand districts struggling with student population loss and school closures. There was no additional funding to support schools serving the state growing number of special education teachers.

The House adds money for flood protection and says no to more funding for child care

House members approved several amendments to the budget bill, including one supported by Democrats the change That would provide $25 million for flood relief.

The money would go into the West Virginia Flood Resiliency Office Trust Fund — a fund created by the Legislature in 2023 but never funded.

“The people of West Virginia have not received adequate relief,” said House Minority Leader Sean Hornbuckle, D-Cabell, who sponsored the amendment. “We have the power as a body to do something very profound today.”

Del. Bill Flanigan, R-Ohio, recalled the devastating flooding in Wheeling last year when nine people died.

“I woke up to a massive flood this year and we lost a lot of lives. We lost a lot of damaged property. I will support this amendment. We can just do everything we can to prevent this. If we need to invest more money, I think we need to do it,” Flanigan said.

House members also approved an amendment from Del. Michael Hite, R-Berkeley, agreed said Money donated to the Department of Human Services may not be used for items other than those designated for this purpose, including funds for services for individuals with disabilities. The Department of Human Services previously spent money on people with intellectual and developmental disabilities like COVID testing and salaries of contract nurses.

The House of Representatives included this language in its budget proposal last year, but Morrisey vetoed it.

The Republican supermajority in the House rejected some amendments introduced by Democratic members, including an amendment that would have increased funding for child care by $5.2 million.

The money would have gone toward creating scholarships for 800 child care workers to apply for their own child care, according to amendment sponsor Young. There is one separate bill with bipartisan support This would establish the scholarship program.

More than 26,000 children currently have no access to childcare because providers do not have enough free places. according to government estimates.

Young said her amendment would have created 10,000 recent child care positions by helping workers afford child care.

“It’s not a demand issue, it’s a staffing issue,” she said, adding: “…if parents can’t find child care, they can’t go to work.”

The budget includes $5 million in additional funding for the state’s child care services Tri-Share Programoperated by Wonderschool, which shares childcare costs between employers, employees and the state. It currently operates in eight counties.

Human Services could apply millions of dollars of its own funds for other child care initiatives if it chooses, Del said. Matt Rohrbach, R-Cabell, who spoke against Young’s amendment.

The bill now goes to the Senate to consider the House’s amendments.