FY 2014 Budget Update

April 29, 2013 by

On April 17, 2013, the West Virginia legislature passed the Fiscal Year 2014 budget. Only minor changes were made to Governor Tomblin’s $11.3 billion proposal, which was introduced at the start of the legislative session, with the final budget only $2.0 million smaller than the governor’s proposal, a reduction of 0.02 percent. The FY 2014 budget represents a total decrease of $203.1 million below the FY 2013 budget.

The state’s budget includes both state and federal appropriated funds. State appropriations, which include General Revenue, Lottery funds, Special Revenue, and the State Road Fund, totaled $7.2 billion, while appropriations from federal sources totaled $4.1 billion. Figure 1 breaks down these funding sources for the FY 2014 budget. 

 

School Aid Formula Adjustment Drives Base Budget Changes

The state’s base budget, its primary source of discretionary spending, is made up of the General Revenue, Lottery, and Excess Lottery funds. The FY 2014 base budget totals $4.45 billion, which is $4.75 million less than the governor’s proposal, a decrease of only 0.1 percent (Table 1).

Table 1

FY 2014 Base Budget Changes from Governor’s Proposal

 

FY 14 Proposed

FY 14 Enrolled

Difference

% Change

General Revenue

$4,140,751,000

$4,136,001,000

-$4,750,000

-0.1%

Lottery

$151,573,583

$151,573,583

$0

0.0%

Excess Lottery

$163,922,000

$163,922,000

$0

0.0%

Total

$4,456,246,583

$4,451,496,583

-$4,750,000

-0.1%

Source: WVCBP analysis of WV State Budget Office Data

As Table 1 shows, the changes made by the legislature to the governor’s proposal were small and concentrated in the General Revenue Fund. While some minor changes were made to the Lottery Fund, the overall total remained the same, while the General Revenue Fund was reduced by $4.75 million. One of the biggest changes to the General Revenue Fund was a $4 million reduction to the Supreme Court’s appropriation, which was requested by Governor Tomblin after the Supreme Court revised its initial request.  The West Virginia Development Office also saw its appropriation reduced by $2.6 million, a 12.8 percent decrease.

Other changes to the base budget were the result of changes to the school aid formula. The school aid formula determines the amount of money the state sends to the local school districts each year. Estimates for education costs increased by $6.3 million since the governor’s proposal, but the estimate for the local district’s share (which is determined by local property tax revenue) also increased by $15.6 million. As a result, the state’s appropriation declined by $9.2 million, freeing up money for other areas of the budget. This resulted in small increases for Medicaid, public safety, education, and higher education from the governor’s proposal.

Supplemental Appropriations

During the legislative session the Legislature can pass supplemental appropriations, which are bills that increase spending authority above the levels contained in that year’s budget. While a supplemental appropriation raises the “spending ceiling” of an item in the budget, it does not mean that the amount of the supplemental appropriation will be spent in this fiscal year, only that the amount authorized to be spent has been raised. Supplemental appropriations are typically made when an item requires immediate funding and is too urgent to postpone until the enactment of the next year’s budget.

Table 2 lists the supplemental appropriations passed during the 2013 Regular and 1st Special Sessions.

Table 2

FY 2013 Supplemental Appropriations

Bill

Subject

Department

Fund

Total

SB197

Public Defender Services

Administration

General Rev

$11,500,000

SB197

Human Services

DHHR

General Rev

$17,468,806

SB208

Division of Labor

Commerce

General Rev

$200,000

SB208

Human Services

DHHR

General Rev

$1,800,000

SB523

Minority Affairs Fund

Executive

General Rev

$676,000

SB523

State Board of Rehab

Education & the Arts

Special

$2,905,360

SB523

Division of Health

DHHR

Special

$7,505,076

SB523

WV State Police

MAPS

Special

$534,000

SB523

Municipal Board Commission

Revenue

Special

$247,500

SB523

Public Port Authority

Transportation

Special

$8,000,000

SB523

WV Board of Examiners for Registered Professional Nurses

Misc Boards & Commissions

Special

$10,000

SB523

WV Board of Licensed Dietitians

Misc Boards & Commissions

Special

$2,882

SB524

Division of Highways

Transportation

Road

$21,000,000

SB525

Children’s Health Insurance Agency

Administration

Federal

$15,000,000

SB525

Division of Miners’ Health Safety & Training

Commerce

Federal

$150,000

SB525

State Dept of Education

Education 

Federal

$600,000

SB525

Division of Culture and History

Education & the Arts

Federal

$450,000

SB525

Division of Health

DHHR

Federal

$4,050,000

SB525

Division of Human Services

DHHR

Federal

$30,228,184

SB525

State Police

MAPS

Federal

$750,000

SB525

Insurance Commissioner

Revenue

Federal

$1,264,540

SB525

Coal Heritage Highway Authority

Misc Boards & Commissions

Federal

$75,000

SB526

Division of Human Services

DHHR

Federal Block Grants

$10,550,000

HB2541

Division of Human Services

DHHR

Excess Lottery

$67,432,506

SB1005

Governor’s Office Civil Contingent Fund

Executive

General Rev

$10,317,860

SB1005

Attorney General

Executive

General Rev

$1,859,913

SB1005

Development Office

Commerce

General Rev

$1,000,000

SB1005

Consolidated Medical Service Fund

Transportation

General Rev

$3,000,000

SB1005

Higher Education Policy Commission

Higher Education

General Rev

$1,600,000

Source: West Virginia Legislature 2013 Session

Bills Passed With Fiscal Impact

The Legislature passed 216 bills during the 2013 Legislative Session. 69 of those bills came with fiscal notes attached. Fiscal notes are the price tags attached to legislation that inform legislators and the public of the estimated cost to the state in either expenditure increases or revenue losses. Fiscal notes are usually attached to a bill when taxes or fees are assessed or a new program, service, or fund is being created. Of the 69 fiscal notes, 23 identified a measurable fiscal impact to the state, while another eight were unable to provide an estimate. These fiscal notes are listed in Table 3. The remaining fiscal notes found no fiscal impact.

 Table 3

Bills Passed with Fiscal Impact

Bill

Summary

Expenditure Impact

Revenue Impact

SB22

Requiring maternity services coverage for all health insurance plan dependents in certain circumstances

-$77,888

$0

SB65

Exempting PERS retirement income of DNR police officers from state income tax

$0

-$160,000

SB103

Creating WV Commuter Rail Access Act

$0

-$770,000

SB359

Relating generally to reforming public education

$3,099,774

$0

SB394

Relating to scholarships for dependent children of state troopers who die in performance of duty

$30,000

$0

SB401

Relating to Board of Registration for Professional Engineers

$500

 

SB403

Relating to judicial retirement system contribution rates

$324,000

 

SB440

Relating to disclosure of specified tax information for enforcement of Tobacco Master Settlement Agreement

$0

$500,000

SB445

Allowing Tax Commissioner divert lottery prizes to offset tax liabilities of lottery winners

$0

$250,000

SB448

Increasing number of demonstration dealer plates issued to large commercial vehicle dealers

$46

$550

SB454

Relating to taxation of alternative motor fuels

$31,400

$0

SB463

Increasing special license fee paid by pipeline companies to PSC

$0

$85,000

SB477

Relating to electronic registration of voters

-$11,983

$0

SB481

Relating to juvenile mental health treatment

$8,574,853

$0

SB482

Relating to sale of voter registration lists

$10,000

$12,000

HB2352

Clarifying that the WV DEP does not assume a mine operator’s obligations or liabilities under the Water Pollution Control Act

$50,000

Unknown

HB2357

Relating to sexting by minors

$57,056

$0

HB2470

Relating to sign support specialist or an educational sign language interpreter in the education of exceptional children

$20,489

$0

HB2542

Relating to publication of the State Register

-$21,790

-$11,800

HB2727

Relating to the school aid formula

-$4,463,198

 

HB2837

Amending various provisions of the Code affecting the Treasurer’s Office

$3,571,546

$0

HB3020

Improving boat dock and marina safety

$41,000

$0

HB3069

Relating to access to justice

$359,333

$0

HB158

Creating Complete Streets Act

Unknown

$0

HB202

Creating WV Spay Neuter Assistance Program and Fund

Unknown

Unknown

HB371

Relating to prison overcrowding

Unknown

Unknown

HB553

Relating to Highway Design-Build Program

Unknown

Unknown

HB638

Terminating certain severance tax exemption for production of natural gas or oil

$0

Unknown

HB2352

Clarifying that the West Virginia Department of Environmental Protection does not assume a mine operator’s obligations or liabilities under the Water Pollution Control Act

Unknown

Unknown

HB2469

Increasing the cap on earnings during temporary reemployment after retirement

Unknown

$0

HB2851

Establishing a onetime audit cost amnesty program for local governments with delinquent audit costs

$0

Unknown

Source: West Virginia Legislature 2013 Session